EuroSports Global Ltd. Trade Ideas — SGX:5G1

"En Route to Recovery" - EuroSports Global Ltd. (SGX: 5G1)Based on our observation, EuroSports Global has been showing signs of recovery alongside with a sign of collection (as indicated by the MCDX indicator), while RSI shows a neutral-positive upwards trend. Currently, EuroSports is challenging its key resistance at S$0.200, with a potential to challenge higher upon breaching the resistance, while key support remains at S$0.160 as tested multiple times over the past week. We keep a "BUY" rating for EuroSports Global, given the encouraging momentum the share price is showing.

Singapore’s EV Market Poised for Leadership in Southeast Asia?Singapore is set to become Southeast Asia’s largest electric vehicle (EV) market, with an estimated 80% of its passenger vehicles expected to be electric by 2040, according to BloombergNEF. This significant market shift underscores Singapore’s commitment to sustainable transportation, placing it far ahead of regional peers, where the average EV market share will likely reach just 24%. The Lion City already leads Southeast Asia in EV adoption, with EVs making up about 32.1% of new car registrations within the first seven months of 2024. In 2023, EVs comprised 19% of total vehicle sales, highlighting the growing consumer shift towards cleaner energy vehicles. Singapore also boasts the highest density of EV charging infrastructure in the region, with one public charger for every three EVs. By comparison, Thailand has a charger for every 16 EVs, Malaysia one for every 38, and Indonesia one for every 42. This extensive charging network alleviates concerns around charging accessibility, a common challenge in EV adoption, and demonstrates Singapore’s proactive steps to support its EV market expansion. Driving Factors: Falling Battery Prices and Policy Support A key enabler of EV adoption is the reduction in battery prices, the most expensive EV component. BloombergNEF projects that battery prices will fall by 17% every time the cumulative number of batteries produced doubles, significantly decreasing EV costs. From 2010 to 2023, battery pack prices dropped by 90%, making EVs more affordable and competitive with petrol-powered vehicles. Supportive government policies also bolster Singapore’s EV market growth. Policies include banning new diesel-powered cars and taxis from 2025, implementing a certificate of entitlement (COE) system to encourage vehicle turnover every ten years, and mandating that all new car and taxi registrations from 2030 must be cleaner-energy models. These strategies align with Singapore’s Green Plan, which aims for 60,000 EV charging points by 2030 and 100% clean-energy vehicles by 2040. Comparative Growth and Regional Trends Across Southeast Asia, the EV market has been expanding, driven in part by Chinese automakers such as BYD, Great Wall Motor, and GAC Aion, which are setting up manufacturing facilities in Thailand. Although Thailand currently leads the regional EV market in sales numbers, with over 86,000 EV units sold in 2023, Singapore is expected to lead in market share percentage. In total, Southeast Asia saw more than 153,500 passenger EV sales in 2023, including 5,734 units in Singapore. Transport economist Professor Walter Theseira attributes Singapore’s rapid EV adoption to the COE system, contrasting it with other Southeast Asian countries where vehicles are often kept for longer. Singapore’s vehicle turnover model, coupled with policies promoting EV use, has created a supportive environment for sustained EV growth. Future Opportunities for EuroSports Global Ltd. and Nio Inc. As the demand for EVs continues to rise in Singapore, companies like EuroSports Global Ltd. and Nio Inc. stand to benefit. EuroSports Global, a local leader in luxury and performance vehicle distribution with its own in-house Scorpio Electric Vehicle brand, has the potential to leverage Singapore’s growing market for high-performance EVs. Meanwhile, Nio Inc., a prominent Chinese EV manufacturer, could find new opportunities to expand its presence and meet demand in Singapore, given the city-state's openness to international EV brands and its alignment with clean energy goals. With its robust infrastructure, government support, and ambitious clean-energy targets, Singapore is well on its way to becoming Southeast Asia’s leading EV market, setting a compelling example for neighbouring countries aiming for sustainable growth.

Should You Invest in EuroSports Global Ltd (SGX: 5G1)?In Singapore, the electric bicycle market is experiencing significant growth. Revenue is projected to reach USD 77.65 million in 2024, with an anticipated annual growth rate (CAGR) of 3.88% from 2024 to 2029, culminating in a market volume of USD 93.95 million by 2029. This upward trend reflects a strong consumer shift towards eco-friendly transportation alternatives. This growth is driven by Singapore’s commitment to sustainable transportation, making it easier than ever to adopt cleaner, greener travel across the city. EuroSports Global Ltd. (SGX: 5G1) is at the forefront of this revolution through Scorpio Electric. The flagship Scorpio Electric X1, the first ever home-grown electric bike in Singapore, is currently undergoing public road testing, following the special approval of a Special Purpose License from the Land Transport Authority in July 2024. With advanced connectivity, from phone-to-bike integration to customisable energy regeneration, the X1 offers a personalised electric motorcycle experience unlike any other. Yet, despite such progress and innovation, EuroSports Global’s share price remains undervalued. Analysts believe that with its pioneering role in the electric vehicle market and a strong growth trajectory, the company is positioned for significant upside. For investors who have zero position in the company, perhaps this is a good opportunity to invest in them as the market has clearly yet to reflect their true value.

Technical Review - EuroSports Global Ltd (SGX: 5G1)Our proprietary indicator had spotted a significant uptick in interest in SGX: 5G1 over the past few trading days, with its share price once breached the key resistance level of $0.200. Based on the fund flow indicator (as represented by the red bar), there is collection activities ongoing for 5G1 currently. We remain positive on the upcoming price movement of 5G1 with our short term TP being set at $0.300, which is the previous high level for the company, while supported strongly by the EMA20/50 levels at the current price, $0.175.

The Untapped Potential of Electric Vehicle (EV) in Singapore Singapore is poised to lead South-east Asia's electric vehicle (EV) revolution, with a projection that by 2040, 80% of all passenger vehicles in the country will be electric. This makes Singapore the standout market in the region, with a significantly higher adoption rate compared to its neighbours, where the regional average is expected to reach just 24%. Thailand and Vietnam are forecast to trail behind at 41% and 31% respectively, highlighting Singapore’s robust position in the green mobility sector. Singapore’s adoption of EVs is already outpacing other nations in the region. By 2023, EVs made up 19% of total vehicle sales in the country, the highest in South-east Asia. Notably, in the first seven months of 2024, EVs represented 32.1% of new car registrations, showcasing strong growth momentum. Singapore’s lead is further underpinned by a dense charging network, with one public charging station for every three EVs—far ahead of Thailand's ratio of one charger for every 16 EVs and Malaysia's one for every 38. The rapid growth of the EV market in Singapore is supported by government initiatives aimed at promoting electric mobility and a greener future. The Electric Vehicles Charging Act, introduced in December 2023, has laid the regulatory groundwork for a reliable and accessible EV charging network. It ensures that all chargers adhere to Land Transport Authority (LTA) safety standards and introduces a new licensing regime for charging operators to maintain service standards and safety. These efforts will facilitate the deployment of 60,000 EV charging points across Singapore by 2030, with 40,000 set for public car parks and 20,000 for private premises. Additionally, the Certificate of Entitlement (COE) system in Singapore plays a significant role in accelerating EV adoption. By encouraging the turnover of vehicles every ten years, the system indirectly fosters the uptake of newer, greener technologies like electric vehicles. Coupled with policies aimed at ending the registration of new diesel-powered cars and taxis from 2025 onwards, Singapore’s path towards sustainable transport is clearly defined. A key factor driving this EV expansion is the steady decline in battery prices. Batteries are the most expensive component of an electric vehicle, but BloombergNEF notes that battery prices have fallen by 90% from 2010 to 2023, and they are expected to drop further by 17% for every doubling of battery production. This trend is making EVs more price-competitive with traditional internal combustion engine vehicles, thus lowering barriers to entry for many prospective EV owners. Looking at the broader South-east Asian context, the market for passenger EVs continues to expand, fuelled by supportive policies and the involvement of major Chinese automakers. In Thailand—the largest EV market in the region—EV sales quadrupled in 2023 to 86,383 units. Singapore, while smaller in absolute numbers, recorded 5,734 EV sales in the same year, reflecting a significant adoption rate relative to its population size. Government strategies, such as mandatory EV charging provisions for new buildings and incentives like the EV Common Charger Grant for private residences, are further catalysing the growth of EV infrastructure in Singapore. By the end of 2023, approximately one-third of Housing and Development Board (HDB) car parks were fitted with EV charging points, with a target for all HDB towns to be EV-ready by 2025. The government is also working towards fostering a culture of responsible sharing of charging facilities as part of its broader aim of a seamless and accessible charging experience. Against this backdrop, EuroSports Global Ltd (SGX: 5G1) is aggressively entering the market with the launch of the Scorpio X1 EV bike. With approval from the Land Transport Authority (LTA), this electric motorcycle aims to capture the growing demand for EVs in Singapore. Given the country's favourable regulatory environment, expanding infrastructure, and consumers' increasing shift towards electric mobility, the Scorpio X1 could see significant growth in the coming years, marking a promising chapter for EuroSports Global Ltd in the electric mobility sector. The content of the article originated from The Straits Time Singapore - Singapore will have largest share of passenger EVs in S-E Asia by 2024: Report.

The Hidden Investment Gem in Singapore? With the weakening of SGD, now might just be the perfect time to look into stocks listed in the Singapore market. While doing so, I noticed that one company that has significant exposure to the Electric Vehicle (EV) has been under the radar for too long. This company, EuroSports Global Limited (SGX: 5G1), is the specialist in distribution of ultra-luxury and luxury automobiles and the provision of after-sales services. How luxurious, you may ask? Well, super cars such as Lamborghini and Touring Superleggera (2012, Asean region) have been in their distributional portfolio since 2002 (Singapore) and 2018 (Indonesia). Beyond such luxurious brands, EuroSports had a new wholly-owned subsidiary, Scorpio Electric Pte. Ltd. (SEC) to get involved into the next-generation motorcycle that is fully electric in nature.This is followed by the launch of Scorpio Electric X1 on a global scale - which allows Eurosports to tap into the global EV market. In their homeground, Singapore, EuroSports also secured a Special Purpose License from Land Transport Authority of Singapore (LTA) for their flagship electric maxi-scooter, which is the X1 model we just mentioned. In other words, the X1 model is now allowed to be on the roads of Singapore. This is the very first step of X1 to conquer the electric maxi-scooter, given the premium specification, design and pricing proposition (USD9,800) in the market. We think X1 will be the significant revenue and growth driver for EuroSports ahead. To conclude, this is certainly a valuable gem for investors to look at.

EuroSports Global Ltd.

5G1 trade ideas