13 exciting high growth companies in 1? Sounds like good Ideanomics….

For investors looking at a way to tap into some of the biggest growth trends this decade then today’s company offers that in spades. Their focus is high growth companies and on improving them by providing capital as well as access to leading technologies and services designed to improve transparency, efficiency, and accountability.

The company is Ideanomics Inc. (NASDAQ: IDEX). Ideanomics is a rapidly growing investment company that provides the financial support for growing companies within disruptive industries such as electric vehicles (EVs), social media platform creation, and fintech & financial services. Ideanomics is headquartered in New York, USA, with operations in the U.S., ChinaUkraine, and Malaysia.

By my count Ideanomics now holds an interest in 8 commercial EV related companies, 4 financial services companies, and 1 social media company. This means that buyers of Ideanomics effectively get to buy an interest in a total of 13 companies in 1.

Ideanomics revenue is growing rapidly

The recent financial results speak for themselves. In the full calendar year 2020 Ideanomics was busy acquiring new businesses and revenue was just US$27 million. Announced in May, Q1 2021 revenue was US$32.7 million. Interestingly the vast majority of the Q1 revenue came from Timios, the title & escrow business, which generated revenues of $27.6 million. Electric vehicles revenue was US$3.0 million and WAVE contributed US$1.8 million. This is more than all of 2020. Q1, 2021 gross profit was US$10.8 million, up from US$44,000 in Q1, 2020, which is really a stunning performance.

Furthermore, due to the new business acquisitions from the past year, Ideanomics revenue is forecast to reach US$129 million in 2021. If achieved, that would be an impressive 4.77x increase on 2020. 2022 revenue is forecast to climb again to US$145 million and 2023 to US$200 million, or approximately 7.4x higher than 2020.

In perhaps the understatement of the year, Alf Poor, CEO of Ideanomics, stated:

“Ideanomics is transforming dramatically quarter over quarter….I am both pleased and proud to say that as it stands today the company is the healthiest it has been in close to three years that I have been on board.”

Ideanomics earning summary from last 5 quarters

 

Source: Company investor presentation

An updated summary of Ideanomics’ business

Ideanomics Mobility – EV fleet sales, EV financing, EV charging and mobility services.

  • Medici Motor Works aims to develop the North American specialty vehicle and pick-up truck market.
  • Wireless Advanced Vehicle Electrification Inc. (‘WAVE’) develops inductive charging solutions for medium and heavy-duty vehicles in the U.S. Ideanomics acquired 100% of WAVE in early 2021. You can read WAVE’s latest news here.
  • Mobile Energy Global (MEG, 100% owned) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions in China.
  • Treeletrik is an approved EV manufacturer and distributor for Malaysia. Treeletrik plans to drive ASEAN commercial EV sales leveraging Chinese & Korean OEM partners for manufacturing. Ideanomics bought 51% of Treeletrik in 2019.
  • Solectrac develops and sells electric tractors and is based in California, USA. Ideanomics bought a 14.7% investment in Solectrac which was later increased to 22%.
  • Energica Motor Company is an Italian electric motorcycle company. Ideanomics acquired 20%.
  • SilkEV – Italian engineering and design services.
  • US HybridAnnounced in May 2021, Ideanomics acquired 100% of US Hybrid, a company that has pioneered clean transportation technologies for more than 20 years. US Hybrid offers proven zero-emission powertrain components for electric, hybrid and fuel cell medium and heavy-duty municipality vehicles, commercial trucks, buses, and specialty vehicles throughout the world.

Ideanomics Mobility – Ecosystem and shared services platform

Source: Company investor presentation

Social Media – Hoo.be – Ideanomics acquired a 20% ownership of social media all-in-one creator hub platform hoo.be in 2021.

Ideanomics Capital – This division focuses on fintech disruption and financial services.

  • Timios Holding Corp. is a leading title and settlement solutions provider based in California USA with operations in 44 U.S states. Ideanomics acquired 100% of Timios Holdings Corp. in 2020.
  • Delaware Board of Trade (DBOT) is a next generation broker-dealer bringing the best practices of capital markets to the small cap marketplace.
  • Liquefy provides a tokenization and investor onboarding SaaS platform for institutional asset owners. Through its platform, illiquid assets can be traded on exchanges, have fractional ownership, and access global investors all with automated compliance. Liquefy is a pioneer as the first firm to tokenize real estate and a VC fund in Asia.
  • Technology Metal Market (TM2) is a Londonbased digital commodity issuance and trading platform for technology metals, including those used for EV battery production, energy storage systems, and solar cells.

Ideanomics Inc. 1 year stock price performance

Source: Yahoo Finance

Closing remarks

Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption such as EVs and fintech.

Ideanomics continues to make smart acquisitions/investments in fast-growing companies within their circle of competence. Some of these are already returning significant revenue while others will require a bit more time. Ideanomics’ latest purchase of US Hybrid looks to be another good move. In total Ideanomics now has an interest in 13 exciting high growth companies.

Ideanomics stock price was on a tear peaking at US$4.95, but has recently had a pullback to US$2.46; which is well below the current price target of US$7.00. Be sure to take a deeper look at Ideanomics as management is very proactive and the company is growing very fast.




Focused on the EV sector and fintech solutions, Ideanomics identifies opportunity

The commercial electric vehicle (EV) space is starting to accelerate now, boosted by Government initiatives and favorable economics. In October 2020, there was a big announcement in China that many people missed. It was announced that China passed a plan to boost their new energy vehicle industry (NEVs are mostly comprised of EVs). The key point was: “Starting from 2021, at least 80 percent of public transportation, taxi and logistics vehicles in the national ecological civilization pilot zones in Fujian, Jiangxi, Guizhou and Hainan should be new energy vehicles.” This is very big news for the Chinese commercial EV space. The Company I am discussing today is focused precisely on this area.

The global commercial vehicle market is enormous, with the new opportunity being the switch to EVs

Source

Ideanomics, Inc. (NASDAQ: IDEX) is a global fintech company for transformative industries with a goal of empowering a new economy. Ideanomics has identified a niche market in the commercial electric vehicle (EV) segment – helping companies with EV fleet purchases by financing and brokering deals, EV leasing, and EV charging with an initial focus on China but also expanding globally. Many fleet operators are restricted in what they can borrow on EVs as opposed to on internal combustion engine (ICE) vehicles – hence an opportunity for Ideanomics.

Ideanomics has two key divisions:

  • Mobile Energy Global (MEG) – Provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. The main focus for now is Chinese EV fleet operators, however a recent 14.7% investment into Solectrac (California e-tractor company) shows the intention for global expansion. Another was their 2019 51% acquisition of Treeletrik, the only licensed pure-play EV manufacturer and distributor in Malaysia.
  • Ideanomics Capital – Provides disruptive fintech solutions and services across the financial services industry. Ideanomics focuses on leveraging technology and innovation to improve efficiency, transparency, and profitability for the financial services industry. A recently announced purchase of 100% of California-based Timios Holdings Corp. (a leading title and settlement solutions provider) again shows Ideanomics is expanding globally.

Ideanomics – Driving commercial EV adoption and disruptive fintech solutions

Source

Ideanomics business model is to target new and disruptive industries such as EVs and fintech. Added to this, Ideanomics takes a long term view and aims to establish solid businesses with recurring revenues. Some examples would be regular EV fleet sales, EV charging, EV financing, real estate settlement/title services and other fintech businesses.

Ideanomics’ DNA is to serve as a catalyst for change through innovation. With innovation comes the chance to drive greater efficiencies that can lead to greater revenues and ultimately profits. Ideanomics MEG division remains Ideanomics’s core business, accounting for 95% of revenue in Q3, 2020. A November 10, 2020 paid broker report guides for Ideanomics revenues to be US$30M in CY20 (Q3 2020 revenue was US$10.6M) and to ramp up to about US$100M in CY22. They quote an end CY22 intrinsic value for Ideanomics of US$2.44/share.

Also of some interest is that there has been recent buyer activity from Morgan Stanley.

Ideanomics revenue is growing fast achieving US$10.6M in Q3 2020

Source

Commercial EV deliveries growing each month led by taxi and ride hailing

Source

Closing remarks

The commercial EV space is currently undergoing the first and early stages of an enormous disruption as the global fleets move towards electrification. China is leading the way and hence is where Ideanomics has their main initial focus. I would expect the trend to grow exponentially both in China and globally as operators start to understand the massive cost savings of running EV fleets versus combustion cars. Ideanomics has already expanded into Malaysia and California, USA.

Ideanomics has been traveling under the radar with many investors not yet knowing or understanding their business, leaving a potential opportunity for early investors. As the Company grows so will the recognition and revenues, and in time profits. Ideanomics trades on a current market cap of US$236M. One to follow.