The company has been operating Electric Vehicle (EV) charging stations for more than 4 years. Due to increase in demand and increase in EV, the Company would like to expand its charging station network and thus it requires financial aid for current assets to realise its plans.
We evaluate the Company with a grade A - despite the fact that the Company does not have an excellent financial health ratios, experience of management and Company's track record of operations compensates it. We believe that the Company would be able to repay principal and interest according to the schedule.
- The Company is registered on 16.03.2015
- Its main activities include management of real estate and lease and rent and lease of specific machinery
- It has experience in maintenance of EV charging station since 2014
- The Company will act as a intermediary between subcontractor and its clients that has a proven record of stability and green mindset
- Complements existing infrastructure
- Opportunity to receive public funding
- Synergies with renewable electricity development
- Synergies worldwide infrastructure development
- Sceptical attitude towards electric cars
- Alternative ways of ensuring EV charge (i.e. battery change)
|Since 2016 the Company's financials has decreased more than 4 times in 2020, however the Gross profit is at the same level. In 2020 the Company's Gross profit margin was 63% and Net profit margin 25%. In 2021 the Company's financial will grow due to several new projects.|
|In the 1st quarter of 2021, 144 electric cars were registered in Latvia and accounted for 2% of new car registrations (Graph 1). It should be mentioned that the overall car market continues to decline, and as a result the total number of electric car registrations is lower than in the previous two quarters, but it is twice as high as a year ago. The increase of electric vehicles is shown in Graph 2.|
On April 1, 2021, there were 1’989 electric vehicles registered in Latvia. Among them are 1'349 battery electric cars (+83% compared to last year), 8 electric buses (+0%), 35 electric commercial vehicles (+94%), 36 electric quadricycles (+ 16%), 25 electric motorcycles (+ 177%) and 536 electric mopeds (+112%). In total, the annual growth of electric vehicles is +89%.
Last year, the highest share of new car registrations (4.02%) was reached, and it seemed that the increase will continue. However, 2 quarters have passed, but the share has dropped to 3%. At the moment, it looks like the fall was an exception and that the 5% limit, hopefully, will be reached next year.
It is clear that the number of EV will continue to grow. The Ministry of Transport stated that in order to achieve the 2030 emission reduction target, 18'000 electric cars must be registered in Latvia. The above projections suggest that this target will be achieved by then. The Euro7 emissions standard is expected to be approved in the summer and it is possible that there will be a requirement to ban the sale of internal combustion engines. 
|Unfortunately, it should be noted that currently Latvia is one of the few countries in Europe that does not provide real benefits at the time of purchasing electric cars, however, there is an opportunity to obtain more favorable borrowing conditions in banks.  But it seems that changes will finally happen! In order to achieve the set climate policy goals in the transport sector, the Latvian government is working on the development of several instruments, including a support mechanism for the purchase of electric vehicles. It is planned to grant support in the amount of 4,500 euros for the purchase of new electric cars, 2,250 euros for used electric cars and so-called "plug-in" hybrids. 
As the number of electric cars increases, so must the number of charging stations. E-mobi is the national network of electric car charging stations, which ensures the movement of electric cars throughout the territory of Latvia. The network of charging stations is maintained by “Road Traffic Safety Directorate” (CSDD). Currently, 112 fast charging stations operate in the e-mobi network throughout the territory of Latvia, of which 22 stations are in and around Riga (see map).  In addition to E-mobi, there are few other stations that belong to other small networks.