AEI real estate stock: Why Alset Ehome-Tesla deal is a gamechanger?

Alset EHome International Inc. (NASDAQ: AEI) is a diversified real estate holding company. It is engaged in real estate, digital technology, and bio-health activities through its subsidiaries, which operate in the US, Australia, and Asia, including Singapore and South Korea.

Alset has a market capitalization of US$160.27 million.

Seventy percent of its revenue came from the property development segment, and 30% came from the bio-health sector in the March quarter of 2021. Its total revenue was US$5.607 million for the quarter ended March 31, 2021, almost 89% up year on year.

The company incurred a net loss of US$6.236 million in the March quarter, attributable to the common stockholder. In the same period of 2020, its net income attributable to the common stockholder was US$1.619 million. The primary reason for the reporting quarter's loss was unrealized and realized loss on securities investments and finance cost.

The AEI’s cash position has been rising, registering US$29 million at the end of the March quarter of 2021. There was no cash equivalent at the end of the quarter.

In May, Alset Ehome International Inc raised gross proceeds of around US$32 million from the underwritten public offering. Its vision is to provide a healthy living ecosystem through transport, energy, healthy food, and health products.

Source: Pixabay.

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Alset’s share jumped nearly 25% on June 21 to close at US$6.12 after the announcement of its agreement with Tesla Inc. (TSLA). Alset has partnered with Tesla to deliver solar panels, EV chargers etc., to be installed at its 20 new Ehomes in Texas. 

Ten more Ehome contracts would be executed in Northpark, Porter, in June. AEI has plans to develop 70 more units in the Huston area, bringing the total Ehome deliveries to 100 this year.

Alset’s focus is to build a sustainable energy community with Tesla’s renewable energy sources. It also plans to develop 650 homes at Magnolia, Texas, in the future. It will have facilities like organic farming, cafe, childcare, and clubs while keeping sustainable energy in the core.

One interesting point is that each Alset Ehome will come with one Tesla vehicle to promote clean energy through the medium of the electric vehicle. The company has plans to deliver over 5,000 Ehomes supported by clean energy in the next 3-5 years.

The company went public in November 2020. Sustainable energy being the future, its collaboration with Tesla is expected to give impetus to its sustainable Ehome projects.

The stock soared nearly 52% in the past month. It was trading at US$5.94 on June 22 at 9:15 am ET.

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