Zongshen PEM Power Systems Inc. is a Toronto Stock Exchange listed (TSX: ZPP), China-based manufacturing company focused on the development and commercialization of environmentally friendly two and three wheel vehicles. The Company manufactures low-cost, high quality, environmentally friendly small gas motorbikes, electric motorcycles, electric bicycles and other e-vehicles in China for the Chinese domestic and international markets. Zongshen PEM Power System’s largest shareholder is Zongshen Industrial Group, one of China’s largest manufacturers and distributors of motorcycles, engines, and power equipment.
Zongshen Industrial Group was founded in 1992, and now consists of 30
totally or majority owned subsidiaries including Chongqing Zongshen Power Machinery Co., which is listed on the Shenzhen Stock Exchange. The Company employs in excess of 13,000 employees. We break down the numbers in an updated “Quant Snapshot”.
1. Price to sales: 3.86 x sales
As of December 31st, 2009 (Q4 2009) Zongshen PEM Power had 63.95 million shares outstanding. The price as of April 21st, 2010 was $1.26. This gives The Company a market capitalization of $80.6 million. Sales in the trailing four quarters totaled $20.88 million.
2. Cash to Market Cap: 43.6%
As of Q4 2009, Zongshen reported cash and short term investment totaled $35.14 million. The Company’s market cap, as of April 21st, 2010 was $80.6 million.
3. Debt to market Cap: 0
As of Q4 2009 The Company’s reported long term debt was zero.
4. Trailing Three year growth rate: 30%
Zongshen’s sales were $16.09 Million in 2007. Sales grew to 20.88 Million in 2009, but had fallen from a high of $62.94 million in 2008. The year 2006 was excluded because The Company reported no revenue.
5. Enterprise Value to Sales: 2.17 x sales
Enterprise Value as of Q4 2009 was $45.46 million, based on a
market cap of $80.6 million plus Zero long term debt, minus cash
and short term investments of of $35.14 million. Sales for the trailing four quarters totaled $20.88 million.
All financial information about Zongshen PEM Power Inc. is gleaned from
their filings with the System for Electronic Document Analysis and
All calculations are based on The Company’s closing share price as of
close April 21st, 2010: $1.26
Sales from trailing four quarters: $20.88 million
Cash and short term investments as of December 31st, 2010: $8.47 million
Shares outstanding: 63.95 million.