Investors drive Atlas stock up after deal with Chinese EV maker

Investors showed a strong appetite in the state-run Atlas Bangladesh Ltd. (ABL), driving the stock up 10 per cent on Saturday to Tk 57.30 per share, after the disclosure of a deal signed with a Chinese bike maker.

Under the memorandum of understanding signed between Atlas and Zhejiang Luyuan Electric Vehicle Company Limited, the former will import parts of electric bikes and scooters and assemble them locally.

On Saturday, the trade volume of Atlas stock jumped from 5.4 thousand shares in the previous session to 44.9 thousands.

Atlas Bangladesh was once a market leader, operating in collaboration with Japanese brand Honda and Indian brand Hero Honda. Atlas's decline began after both the foreign motorbike makers broke away from their partnerships with it in 2010.

In FY11, Atlas's revenue was around Tk 5.8 billion, leading to a profit of Tk 298 million. Thirteen years later in FY24, the revenue shrank to Tk 116 million, inflicting a loss of Tk 66.6 million.

Experts believe that if Atlas can keep product prices low, it can regain market share that it has lost to competitors.

According to the company, with the technical cooperation of Zhejiang Luyuan Electric Vehicle, it will assemble/manufacture and sell electric scooters and bikes with its own brand name, Atlas EV for example. After the completion of the required procedure, it would be possible to start sales through the Atlas's dealer network in August this year.

Recently, the company has also rebuilt its connection with old partner Japanese brand Honda. According to the business agreement, Atlas will sell motorcycles of Honda brand to the government, semi-government & government-funded projects, autonomous bodies and any other government organisation through exclusively direct procurement method (DPM).

As per the condition of the agreement, Atlas will terminate the existing business & technical assistant agreement with TVS Auto Bangladesh Limited in July 31.

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