2CC - 2 Cheap Cars Group

[Sideshow Bob]

https://www.nzx.com/announcements/403188

Integrated automotive group, NZ Automotive Investments Limited (NZAI) (NZX:NZA) has today reported
revenue and income of $40.2m, an increase of 29 percent, for the half year to 30 September 2022 (HY23).
Summary of key results
(Figures quoted are in NZ dollars. Comparisons are made against HY22.)
 Revenue and income: $40.2m, increased 29%1.
 Vehicle sales: Up 11% to 4,281.
 Underlying EBITDA2 including finance income: $2.9m, down $0.3m.
 Net profit after tax (NPAT): $0.6m, down $0.8m (including $0.7m of restructuring costs)
 Underlying NPAT: $1.0m, a decrease of $0.4m.
 Underlying earnings per share (EPS): 2.3 cents per share (cps) against 3.1cps for HY22.

[Getty]

$40.2M of revenue to make $600K NPAT.

Is this business a charity?

It's not as if they have a backroom of R & D personnel to support, or creating some other asset.

All that endeavor for so little return.

All seems 2 cheap to me.

[Sideshow Bob]

$40.2M of revenue to make $600K NPAT.

Is this business a charity?

It's not as if they have a backroom of R & D personnel to support, or creating some other asset.

All that endeavor for so little return.

All seems 2 cheap to me.

Its no Turners.....

[nztx]

$40.2M of revenue to make $600K NPAT.

Is this business a charity?

It's not as if they have a backroom of R & D personnel to support, or creating some other asset.

All that endeavor for so little return.

All seems 2 cheap to me.

probably after the charities have all been through

anyone seen an expensive charity visiting ?

[Recaster]

$40.2M of revenue to make $600K NPAT.

Is this business a charity?

It's not as if they have a backroom of R & D personnel to support, or creating some other asset.

All that endeavor for so little return.

All seems 2 cheap to me.

The non-recurring restructuring charge for terminations when added back gives a NPAT of $1.3m which is down under 10.0% on the pcp. What is of more concern is the gross margin squeeze which occurred in the FY22. Gross margin could not be calculated for HY23 as revenue is from multiple sources and only the annuals give a breakdown. GM fell from 11.0% to 8.8% in the annuals FY21 vs. FY22.

Company will get a boost from vehicle replacement because of Cyclone Gabrielle.

They will also get a boost from improving NZD/YEN currency pair if they haven't messed up their hedging again.

[percy]

The following comments "FORCED' me to add to my NZA holding this morning..lol

Turners Cars' chief executive officer Greg Hedgepeth told RNZ's Checkpoint the supply of used cars coming into the country had been down for quite sometime.

"Over the last year, I think it's going to be down approximately 30 percent."

Hedgepeth said there were less used vehicles coming into the country right now and they were anticipating up to about 10,000 vehicles due to the recent weather events that would be coming off the roads, being written off.

"There could be a short-term imbalance of supply and demand."

[Sideshow Bob]

The following comments "FORCED' me to add to my NZA holding this morning..lol

Turners Cars' chief executive officer Greg Hedgepeth told RNZ's Checkpoint the supply of used cars coming into the country had been down for quite sometime.

"Over the last year, I think it's going to be down approximately 30 percent."

Hedgepeth said there were less used vehicles coming into the country right now and they were anticipating up to about 10,000 vehicles due to the recent weather events that would be coming off the roads, being written off.

"There could be a short-term imbalance of supply and demand."

Haha - it didn't FORCE you to buy more TRA??

[Rawz]

The following comments "FORCED' me to add to my NZA holding this morning..lol

Turners Cars' chief executive officer Greg Hedgepeth told RNZ's Checkpoint the supply of used cars coming into the country had been down for quite sometime.

"Over the last year, I think it's going to be down approximately 30 percent."

Hedgepeth said there were less used vehicles coming into the country right now and they were anticipating up to about 10,000 vehicles due to the recent weather events that would be coming off the roads, being written off.

"There could be a short-term imbalance of supply and demand."

Where do NZA source their vehicles?

Unlike TRA i dont think its within NZ. So isnt TRA saying the used car importers (NZA) wont have the stock selection we have?

[percy]

Where do NZA source their vehicles?

Unlike TRA i dont think its within NZ. So isnt TRA saying the used car importers (NZA) wont have the stock selection we have?

The Company noted that its 2 Cheap Cars brand market positioning is increasingly relevant in the tough
economic environment, resulting in its estimated market share of used vehicle registrations growing 0.4%
year-on-year. 2 Cheap Cars also strengthened its position as the largest Japanese used vehicle retailer
in New Zealand in terms of total used imports.

[Getty]

At $140 npat per car, it's the cheapest car storage & cleaning facility in town.

Their customers must love 'em.