Tropical Battery Company Limited (TROPICAL) Acquires Property

• Tropical Battery Company Limited (TROPICAL) announced that on September 19, 2024, it acquired a property for $950Mn in Ferry Pen, Kingston 20.

• The property was acquired from Diverze Properties, an associated company under the DAI Diverze (Jamaica) Limited group.

• This acquisition supports Tropical Battery's growth strategy, enhancing its operational capabilities, reducing related-party loans, and is expected to have a positive impact on its financial performance.

• Since the beginning of the year, the company has been making headlines with several key partnerships, including becoming the authorized reseller for eGauge Systems, a provider of commercial, industrial, residential and renewable energy monitoring solutions based in US, and the official dealer for electric car manufacturing giant, Tesla.

• In addition, the company acquired Silicon Valley, California-based Rose Electronics for almost US$20Mn earlier this year, which contributed 55% and 65% to its Q3 revenues and operating profit, respectively. The acquisition was completed through Tropical’s US subsidiary - Tropical Battery USA LLC. This acquisition reaffirmed its commitment to transforming Tropical Battery into a multinational organization at the vanguard of innovative growth in emerging segments driving the transition to more sustainable energy solutions.

• Tropical Battery’s stock price has increased by 28.2% since the start of the calendar year fueled by strong year-to-date earnings growth and promising growth opportunities driven by recent strategic developments. The stock closed Wednesday’s trading session at $2.50 implying a P/E of 15.8x last 12 months’ earnings, which is above the Junior Market Distribution Sector Average of 20.0x.

(Sources: JSE & NCBCM Research)