SHENZHEN - MingZhu Logistics Holdings Limited (NASDAQ: YGMZ), a prominent logistics and transportation service provider, announced today its intention to acquire a portfolio of driverless auto technologies and related intellectual property (IP). The non-binding letter of intent (LOI), valued between $80 million and $90 million, involves assets from The Carbonomi Trust and CYF (BVI) Limited.
The acquisition aligns with MingZhu's long-term growth strategy, aiming to diversify its transportation and logistics offerings. The company is poised to expand into areas such as generative AI-based copilot software and artificial general intelligence (AGI) driverless technology for closed environments like mines and ports.
Chairman and CEO Mr. Jinlong Yang expressed confidence in the potential of the driverless technology to enhance MingZhu's service efficiency and growth. The company has been cautiously observing the maturation of driverless auto technologies, ensuring they meet safety and reliability benchmarks before integrating them into their logistics platform.
MingZhu, established in 2002 and headquartered in Shenzhen, China, operates a network of logistics terminals in Guangdong Province and Xinjiang Autonomous Region. The company leverages a mix of owned and subcontracted fleets to offer customized logistics solutions across China.
This news is based on a press release statement from MingZhu Logistics Holdings Limited.
InvestingPro Insights
As MingZhu Logistics Holdings Limited (NASDAQ: YGMZ) forges ahead with its acquisition of driverless auto technologies, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, MingZhu has a market capitalization of $15.4 million and is trading at a low Price / Book multiple of 0.28 as of the last twelve months ending Q2 2023. This could indicate that the company's stock is undervalued relative to its book value, potentially offering an attractive entry point for investors interested in the company's strategic pivot towards advanced technologies.
Despite the company's ambitious growth plans, it's noteworthy that MingZhu has been operating with a significant debt burden and has been quickly burning through cash. These InvestingPro Tips highlight the importance of closely monitoring the company's financial stability, especially as it undertakes substantial investments in new technologies. Moreover, the company's stock has experienced high price volatility and has seen a considerable decline over the past year, with a -65.84% one-year price total return as of Y2024.D64.
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