LONDON, UK / ACCESSWIRE / October 3, 2017 / Pro-Trader Daily looks at the latest corporate events and news making the headlines for eHi Car Services Ltd (NYSE: EHIC), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=EHIC. The Company announced on September 29, 2017, that it has signed a Memorandum of Understanding (MoU) with Volkswagen Group China, to jointly explore luxury mobility-on-demand services in China. Both companies have agreed to leverage innovative technologies, mobile internet, and car connectivity to deliver premium mobile services to Chinese customers. eHi Car Services is a leading car rental and car services provider in China. eHi is also the exclusive strategic partner in China of Enterprise, which according to the Company, is the largest car rental Company in the world. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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The Announcement

Both eHi Car Services and Volkswagen view this transaction as a step to address the increasing demand for customized luxury mobility solutions. The Companies intend to form a strategic partnership that would combine the strengths of Volkswagen, a leading automaker with Audi, Porsche, and Bentley as portfolio brands, and a comprehensive range of car models for mobility needs in China. eHi Car Services currently operates about 60,000 vehicles from more than 4,000 directly managed service locations in more than 250 cities.

eHi Car Services stated that the country is facing a historic opportunity from the consumption upgrade and economic transformation. Also, the new mobility services provide a stable platform for sharing economy. The Company expects this agreement to add an important level to mobility services and support the ongoing development in China's mobility services sector.

Volkswagen, on the other hand, observes the rising needs of new mobility and views opportunities in the transportation-on-demand business. Also, it views the agreement as a step to develop innovative concepts that advance new mobility-on-demand services in China and deliver well-matched mobility services solutions to customers.

The $400 Senior Notes Offering

On August 14, 2017, eHi Car Services announced the completion of the offering of $400 million aggregate principal amount of its senior unsecured notes due in August 2022. The Notes, according to the announcement, would bear a fixed interest rate of 5.875% per annum, with interest payable semi-annually in arrears. The Company stated that it would use the net proceeds from the offering to repay, and terminate, all the outstanding borrowings under the $150 million syndicated bank facility it entered into on August 2016, and for other corporate expenditures, including capital expenditures, enhancing the capital structure and other refinancing outstanding indebtedness.

Company Growth Prospects

On August 28, 2017, eHi Car Services announced its unaudited financial results for Q2 2017, that is for the three-month period ended June 30, 2017. eHi Car Services' net revenues surged by 27.6% YoY to $94.4 million for Q2 2017. The Company attributed the surge to increased net revenues from car rentals and car services. Gross profit for Q2 2017 was $27.4 million, up 31.4% YoY. eHi Car Services attributed the profit improvement to the percentage decrease of vehicle-related depreciation in terms of net revenues.

Last Close Stock Review

On Monday, October 02, 2017, the stock closed the trading session at $9.75, slightly declining 0.51% from its previous closing price of $9.80. A total volume of 39.19 thousand shares have exchanged hands. eHi Car Services' stock price advanced 5.41% in the last one month. Furthermore, since the start of the year, shares of the Company have gained 7.62%. The stock is trading at a PE ratio of 46.65 and currently has a market cap of $657.15 million.

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