GreenPower Motor (TSX:GPV.V) – Jan 25, 2016

 

Full Report: GreenPower Motor GPV.V – Research by Dave Hammond, OPTIMA Capital Partners – Jan 25 2016

In Q2/16E the Greater Victoria Harbour is set to Take Delivery of North America’s 1st AEP Double Decker Bus 

In this note we hone in on GPV’s upcoming foray into the Canadian marketplace, with the delivery of North America’s first ever, all-electric plug-in (AEP) double decker bus. In transportation circles of influence, this unveiling is certain to garner serious attention, and where one bus sells, we think more will follow. We introduce the idea of a domino effect, specifically by taking a look at BC Transit and potential for ongoing double decker sales.

We have updated our model to reflect the $3M financing that closed in Dec ’15, use of proceeds being primarily to fund production. GPV already has 24 buses under LOI’s, which lines-up nicely toward our 40 bus base case scenario, and handedly suggesting a profitable year ahead. Our ‘16E to ‘18E sales estimates are unchanged from our Nov 4th ’15 report, however we have adjusted our FX assumption (CAD:USD from 1.30 to 1.40), having a positive impact on our forecasts.

Overall we continue to have a bullish view for all-electric plug-in buses Globally, and we believe GPV is the best small cap pure play for exposure to this emerging and disruptive technology in North America.

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