Apollo Future Mobility Stock (OTC: ALFMF)

Latest news for Apollo Future Mobility (OTC:ALFMF) Stock

Apollo Future Mobility Group Ltd is an investment holding company. It operates in three segments. The Mobility technology solutions segment engages in designing, developing, manufacturing, and selling high-performance hypercars and provision of mobility technology solutions. The Jewellery products, watches and other commodities segment focuses on the retailing and wholesale of jewellery products and watches. The Money Lending segment provides loan finance. The Majority of revenue is derived from Jewellery products, watches, and other commodities segments. Geographically Mainland China accounts for the majority of revenue.

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ALFMF

Key Takeaways:


	Apollo Future Mobility is seeking to raise $27 million, and will allocate nearly half to repay debt and most of the rest for business development
	Revenue from its sale of jewelry and watches far exceeds that for its new energy car business


By Li Shih Ta

Failed Merger Leaves Apollo Future Mobility Searching For Direction

APOLLO FUTURE MBILITY GRP by APOLLO FUTURE MOBILITY GROUP LTD.

Apollo Future Mobility Group Ltd

Canaccord Genuity analyst Whitney Ijem maintains Rhythm Pharmaceuticals (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RYTM#NASDAQ">RYTM</a>) with a Buy and maintains $80 price target.

Price Target

Analyst Ratings

RYTM

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Earnings

LDWY

Lendway Q3 EPS From Continuing Operations $(0.67) Up From $(0.85) YoY, Sales $6.6M

Canaccord Genuity analyst Whitney Ijem maintains Rocket Pharmaceuticals (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RCKT#NASDAQ">RCKT</a>) with a Buy and maintains $39 price target.

RCKT

Canaccord Genuity Maintains Buy on Rocket Pharmaceuticals, Maintains $39 Price Target

The Company intends to use the net proceeds from this offering, together with proceeds from the expected issuance of up to $650 million aggregate principal amount of new senior secured notes, borrowings under our revolving credit facility and cash on hand, to fund the consideration payable by us in the previously-announced, pending acquisition of all of the equity interests in Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company and Viking Gas Transmission Company from ONEOK Partners Intermediate Limited Partnership and Border Midwestern Company.

Offerings

ZTO DT Midstream Commences Public Offering Of $300M Of Shares Of Common Stock

Canaccord Genuity analyst Whitney Ijem maintains Intellia Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTLA#NASDAQ">NTLA</a>) with a Buy and maintains $90 price target.

NTLA

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President-elect Donald Trump on Tuesday said he will nominate celebrity physician Dr. Mehmet Oz to lead the Centers for <a href="https://www.benzinga.com/etfs/24/11/42044642/trump-appears-frustrated-as-elon-musk-chimes-in-on-treasury-secretary-adds-more-names-to-a-list-of-potential-picks">Medicare and Medicaid Services (CMS). </a>
The Details: Trump announced Dr. Oz as his pick for CMS administrator in a statement Tuesday afternoon.&nbsp;
"Our broken Healthcare System harms everyday Americans, and crushes our country's budget," Trump said.&nbsp;
"Dr. Oz will be a leader in incentivizing disease prevention, so we get the best results in the world for every dollar we spend on health care in our Great Country," Trump said. "He will also cut waste and fraud within our country's most expensive government agency, which is a third of our nation's health care spend, and a quarter of our entire national budget."
Read More: <a href="https://www.benzinga.com/etfs/24/11/42044642/trump-appears-frustrated-as-elon-musk-chimes-in-on-treasury-secretary-adds-more-names-to-a-list-of-potential-picks">Trump Appears &#8216;Frustrated&#8217; As Elon Musk Chimes In On Treasury Secretary, Adds More Names To Short List&nbsp;</a>
Dr. Oz has a history of offering unproven medical advice and has said his goal was to "empower" Americans to take control of their health, according to the New York Times. He <a href="https://www.nytimes.com/2021/12/26/us/politics/dr-oz-medical-advice.html">promoted the use</a> of hydroxychloroquine as an effective treatment against COVID-19 in the early days of the pandemic, before reversing course and advising patients to wait for evidence from randomized trials.&nbsp;
CMS, an agency within the Health and Human Services Department (HHS), oversees several major health care programs including Medicare, Medicaid, the Children's Health Insurance Program and the Healthcare.gov insurance marketplace exchange. Federal spending on the four programs is $1.6 trillion, or nearly 25% of the entire federal budget.
Last week, Trump announced his intention to nominate another <a href="https://www.benzinga.com/general/biotech/24/11/41822473/trumps-potential-health-czar-robert-f-kennedy-jr-rattles-vaccine-stocks-shoot-first-reaction">controversial figure,</a> Robert Kennedy Jr., to head the HHS.&nbsp; Other unconventional selections include Trump's choices of former Rep. Matt Gaetz for U.S. attorney general and Fox News host Pete Hegseth for defense secretary.
Chiquita Brooks-LaSure is the current CMS administrator under the Biden administration.&nbsp;
Following Trump&#8217;s announcement, investors may want to monitor shares of UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>), the largest Medicare Advantage insurer nationwide, and shares of Elevance Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>), one of the largest Medicaid insurers.
Read More:&nbsp;
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<li><a href="https://www.benzinga.com/general/biotech/24/11/41822473/trumps-potential-health-czar-robert-f-kennedy-jr-rattles-vaccine-stocks-shoot-first-reaction">Trump&#8217;s Potential &#8216;Health Czar&#8217; Robert F. Kennedy Jr. Rattles Vaccine Stocks: &#8216;Shoot First Reaction&#8217;</a></li>
</ul>
Photo: G. Holland via Shutterstock

Health Care

Politics

General

streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

Trump Picks Dr. Oz As Centers For Medicare And Medicaid Services Administrator

Canaccord Genuity analyst Austin Moeller maintains Enphase Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>) with a Hold and maintains $76 price target.

ENPH

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The offering consists of $500 million aggregate principal amount of senior secured notes due 2026&nbsp;at a price to the public of 99.948% of their face value and $750&nbsp;million aggregate principal amount of senior secured notes due 2034 at a price to the public of 99.903% of their face value.

Vistra Reveals Pricing Of Private Offering Of $1.25B Of Senior Secured Notes

Canaccord Genuity analyst Sumant Kulkarni maintains Cybin (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/CYBN#AMEX">CYBN</a>) with a Buy and maintains $86 price target.

CYBN

Canaccord Genuity Maintains Buy on Cybin, Maintains $86 Price Target

Advanced Environmental Recycling Technologies

AERT

Aeries Technology Q2 EPS $(0.05), Sales $16.9M Down From $17.6M YoY

Canaccord Genuity analyst Brian McNamara maintains Solo Brands (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DTC#NYSE">DTC</a>) with a Buy and maintains $3 price target.

Canaccord Genuity Maintains Buy on Solo Brands, Maintains $3 Price Target

Solidion Technology Q3 EPS $(0.07), Including Non-Cash Loss On Issuance Of PIPE Common Stock And Warrants

President-elect Donald Trump announced former Congressman Sean Duffy to oversee the Department of Transportation (DOT) on Monday. 
Here's a look at how the latest Trump selection could affect companies in <a href="https://www.benzinga.com/news/24/11/42053292/trump-picks-sean-duffy-as-next-transportation-secretary-says-he-will-usher-in-the-golden-age-of-travel">the transportation sector. </a>
The Details: Duffy, who served in the U.S. House of Representatives from 2011 to 2019, most recently worked as Fox News Media host. He left the position on Monday, according <a href="https://www.nytimes.com/2024/11/18/us/politics/sean-duffy-trump-transportation-dot.html">to</a> the New York Times.
Duffy is the second Fox News employee to be nominated by Trump for a cabinet position. Last week, Trump picked Fox News host Pete Hegseth as Defense Secretary despite <a href="https://www.benzinga.com/news/24/11/41952962/trumps-surprise-defense-secretary-pick-pete-hegseth-jolts-wall-street">lack of government experience</a>.
In 1997, he was a cast member on MTV's "The Real World: Boston.&#8221;
As Transportation Secretary, Duffy would be in charge of major federal agencies, including the Federal Aviation Administration (FAA) and the National Highway Traffic Safety Administration (NHTSA). 
Read More: <a href="https://www.benzinga.com/etfs/24/11/42044642/trump-appears-frustrated-as-elon-musk-chimes-in-on-treasury-secretary-adds-more-names-to-a-list-of-potential-picks">Trump Appears &#8216;Frustrated&#8217; As Elon Musk Chimes In On Treasury Secretary, Adds More Names To Short List&nbsp;</a>
"He will prioritize Excellence, Competence, Competitiveness and Beauty when rebuilding America's highways, tunnels, bridges and airports. He will ensure our ports and dams serve our Economy without compromising our National Security, and he will make our skies safe again by eliminating DEI for pilots and air traffic controllers," Trump said in his announcement.&nbsp;&nbsp;
<h3 class="wp-block-heading">Air Travel</h3>
If approved by the Senate, Duffy can be expected to address ongoing aviation <a href="https://www.benzinga.com/general/travel/24/11/42014904/boeing-begins-layoffs-is-the-737-max-recovery-enough-to-lift-ba-stock">safety issues</a>. This could include matters relating to Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) and air traffic control challenges. As part of Trump's focus on efficiency, Duffy could potentially work to enhance safety measures while streamlining regulations. 
Major airline companies like Delta Air Lines, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), United Airlines Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) and American Airlines Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) may be affected by potential policy and regulatory changes, as well. 
<h3 class="wp-block-heading">&#8216;Overall Negative For EV Industry&#8217;</h3>
The DOT also oversees the National Highway Traffic Safety Administration (NHTSA) which is expected to focus on regulatory frameworks for electric vehicles and autonomous driving technologies in the near term.  The NHTSA is likely to establish guidelines for emerging technologies like Tesla, Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) autonomous driving software. 
Recent reports suggest Trump has plans to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42046316/trump-set-to-hand-musk-golden-path-for-tesla-after-reversing-course-on-autonomous-vehicle-ban">ease restrictions</a> on self-driving vehicles, which could help companies like Tesla expand FSD and bring robotaxis to the market.
Tesla CEO Elon Musk campaigned heavily for Trump and provided millions to his campaign coffers ahead of Election Day.
At the same time, it seems likely that the incoming Trump administration <a href="https://www.benzinga.com/news/24/11/41781921/what-does-trumps-victory-mean-for-ev-giant-tesla-and-the-big-3-automakers">will eliminate </a>or reduce many of the EV purchase incentives included in the Biden administration&#8217;s Inflation Reduction Act (IRA). 
Wedbush analysts said that Tesla&#8217;s rivals, U.S.-based EV startups like Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) and Lucid Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>), could face a major set-back if Trump rolls back current EV tax incentives and rebates, as reports suggest. 
"We believe a Trump presidency would be an overall negative for the EV industry as likely the EV rebates/tax incentives get pulled," Wedbush analysts wrote.&nbsp;
<h3 class="wp-block-heading">Railroads</h3>
If Duffy is confirmed, he will also oversee the Federal Railroad Administration (FRA), which is responsible for safety measures across the rail network. He may address safety concerns following incidents like the East Palestine <a href="https://www.benzinga.com/news/24/04/38240139/norfolk-southern-to-pay-600m-in-ohio-train-derailment-lawsuit">derailment in 2023</a>.
Duffy will also manage billions in federal grants aimed at improving rail infrastructure and upgrading aging rail systems to enhance efficiency and safety. Railroad companies including CSX Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSX#NASDAQ">CSX</a>), Norfolk Southern Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NSC#NYSE">NSC</a>) and Union Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>) may benefit from such improvement projects. 
Investors can also monitor the broader transportation sector through ETFs which track its performance including the iShares Trust iShares U.S. Transportation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYT#BATS">IYT</a>) and the First Trust Nasdaq Transportation ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXR#NASDAQ">FTXR</a>). 
Read More:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/general/biotech/24/11/41822473/trumps-potential-health-czar-robert-f-kennedy-jr-rattles-vaccine-stocks-shoot-first-reaction">Trump&#8217;s Potential &#8216;Health Czar&#8217; Robert F. Kennedy Jr. Rattles Vaccine Stocks: &#8216;Shoot First Reaction&#8217;</a></li>
</ul>
Image: Shutterstock&nbsp;

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Workhorse Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WKHS#NASDAQ">WKHS</a>) reported quarterly losses of $(0.98) per share which missed the analyst consensus estimate of $(0.83) by 18.07 percent. The company reported quarterly sales of $2.51 million which missed the analyst consensus estimate of $3.42 million by 26.71 percent. This is a 17.17 percent decrease over sales of $3.03 million the same period last year.

Earnings Misses

WKHS

Workhorse Gr Q3 2024 GAAP EPS $(0.98) Misses $(0.83) Estimate, Sales $2.51M Miss $3.42M Estimate

Apollo Future Mobility

<h4>Key Takeaways:</h4>

<ul>
	<li>Apollo Future Mobility is seeking to raise $27 million, and will allocate nearly half to repay debt and most of the rest for business development</li>
	<li>Revenue from its sale of jewelry and watches far exceeds that for its new energy car business</li>
</ul>

By Li Shih Ta

Excess capacity is rapidly sucking the life from many of China&rsquo;s new energy vehicle (NEV) makers, claiming recent victims like WM Motor, which went bankrupt after a failed backdoor listing attempt, and HiPhi, which halted production after the Lunar New Year. Now, the company that was once WM Motor&rsquo;s backdoor listing vehicle is searching for direction, as its own business selling super high-end NEVs goes nowhere fast.

Six months after its deal to merge with WM Motor collapsed,&nbsp;Apollo Future Mobility Group Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ALFMF#OTC">ALFMF</a>) this month&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0317/2024031700073.pdf">announced plans</a>&nbsp;to issue 446 million new shares through a rights offer, equal to 43.6% of its enlarged equity capital. It would sell the shares for HK$0.46 each, a discount of about 9.8% to its price at the time of the announcement, raising HK$210 million ($27 million) and net proceeds of about HK$160 million.

Mainly funded by high-profile Hong Kong and Macao investors, Apollo started out as WE Solutions, a seller of jewelry and watches. It ventured into the then-fledgling EV sector in 2015 with its purchase of Japan&rsquo;s GLM and Ideenion Automobil AG, a German automotive solutions provider. It acquired Apollo, a German niche supercar brand, in 2020, and two years later rebranded itself as Apollo, aiming to refashion itself as a maker of high-end NEV supercars.

<h3>Big-Name Investors</h3>

Apollo&rsquo;s A-list of investors has far more star power than its main product, the Apollo EVO. Its largest shareholder, Ho King Man, is the son of Edmund Ho, Macao&rsquo;s former chief executive. When it announced its EV transformation, it sold convertible shares and received a capital injection from companies belonging to Hong Kong billionaire Li Ka-shing, as well as other local business luminaries.

But following the failed merger with the better regarded WM Motor last September, Li Ka-shing asked for early redemption of his stake. Apollo paid a modest HK$35.1 million plus accrued interest to Li&rsquo;s Able Catch Ltd. last October, while other investors who requested similar early redemptions have given it until the end of this year.

The new rights issue would be the second for Apollo this year, after it raised HK$48 million on Jan. 15. Of that, HK$10 million was used to service its debt and the rest was earmarked for working capital. Much of the funds raised in this latest round will also go to debt repayments.

Aside from a single investment firm, other buyers of the new shares are Apollo&rsquo;s existing stakeholders. Their readiness to contribute additional funds shows their commitment to the company as it navigates its financial challenges. After the issue, Ho King Man&rsquo;s stake will fall to 21.5%, though he will remain as the largest shareholder. Newcomer MPW Index Supreme Investment Fund from Singapore will become the second largest shareholder with 15%.

Even after it satisfies its immediate cash needs, the company&rsquo;s bigger challenge will lie in the weak prospects for its NEV segment. Its original Apollo IE was supposed to be at the forefront of a new generation of NEV super cars, with only 10 units available worldwide, each priced at 2.3 million euros. Meanwhile, its ambitious Apollo EVO project announced a four-seat electric sports car, the Apollo Evision S, in 2021, but no updates have been provided since then.

<h3>Jewelry And Watches</h3>

Apollo&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0320/2024032001513.pdf">previously warned</a>&nbsp;that it would report a loss of HK$700 million to HK$1.1 billion for 2023, reversing a consolidated net profit of HK$270 million the previous year. It blamed the turn into the red mainly on losses in the value of various assets, as well as goodwill impairment.

Despite its attempts to rebrand as a car company, Apollo&rsquo;s revenue currently comes mostly from its original jewelry and watch business. In the first half of last year, automotive distribution and related auto services yielded a paltry HK$3.6 million in revenue, a fraction of the HK$100 million from jewelry and watch sales. Its lending arm provided another HK$20.7 million in interest income. Its auto-related revenue did better in the first half of 2022 with HK$170 million in revenue, though that still trailed the HK$270 million from jewelry and watch sales.

Like many in the NEV space, Apollo has been hindered by the challenges of scaling production and gaining market presence, which are all the more difficult given its position at the ultra high-end of the market. Its plan to acquire WM Motor was partly aimed at boosting its presence with more mainstream models, but that deal ultimately fell through.&nbsp;

After the merger&rsquo;s collapse, WM Motor founder Shen Hui left and Apollo&rsquo;s former Chairman Ho King Fung resigned, citing health reasons. Apollo&rsquo;s general manager and executive director Qi Zhenggang, a seasoned car industry veteran, also left. Its current Chairman Hui Chun Ying is a lawyer and co-founder of a mobile dining app but lacks experience in making cars. None of the company&rsquo;s slate of directors announced at the end of last year has any experience working in auto companies either.

For now, clearing out its debt remains the company&rsquo;s top priority. As of June last year, the company&rsquo;s interest-bearing borrowings and convertible bonds totaled HK$81.4 million and HK$160 million, respectively, while it had about HK$120 million in cash. Of the approximately HK$160 million in net proceeds from the new rights issue, HK$75 million will go to repay debt, while another HK$71.3 million will go to business development.

Unlike other NEV makers, Apollo remains dependent on its traditional business lines, as its future status as a carmaker looks increasingly questionable. The company&rsquo;s stock price fell below HK$1 after the WM Motor deal collapsed last year and has traded between HK$0.50 and HK$0.80 since early this year. Its price-to-sales (P/S) ratio of about 0.33 times reflects its limited appeal to investors, despite its former dreams of glory. One of its biggest assets remains its A-list of shareholders. But it will need to significantly improve its operations &ndash; possibly by finding another NEV partner &ndash; to have any chance of ever realizing its automotive dreams.

This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

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