2CC - 2 Cheap Cars Group

[mike2020]

So those people trying to cut the plugs off to avoid rucs? Future buyers?

[kiwical]

So those people trying to cut the plugs off to avoid rucs? Future buyers?

Yes, it's a problem that Govt. have actually acknowledged. The simple solution is to get rid of this multistrand approach to charging people in different ways depending what vehicle they have. Excise duty on fuel needs to go and everyone charged RUC. It will happen eventually, it was a coalition promise. But it's going to be transitioned slowly. Part of the problem is as simple as not having enough staffing and systems to suddenly change everyone over to RUC.

Anyway, longer term it should have no effect on the cars 2CC sell. In the immediate time there could be some people holding off purchasing a certain type of vehicle until everthing becomes clearer.

[DarkHorse]

I understand it's only mugs like me who own short range PHEVs who are getting caned for being so irresponsible. My 10 year-old plug-in hybrid prius has a range of <17kms... so while on long trips ICE and ordinary hybrid owners will pay only petrol tax, and Tesla owners only RUCs, I will be forced to pay BOTH. Not to mention losing half the resale value of my vehicle. Bloody fair system eh! Good job National for joining the pathetic knee-jerk politics of the era! https://www.nzta.govt.nz/vehicles/ro...ruc-exemptions

[clearasmud]

I understand it's only mugs like me who own short range PHEVs who are getting caned for being so irresponsible. My 10 year-old plug-in hybrid prius has a range of <17kms... so while on long trips ICE and ordinary hybrid owners will pay only petrol tax, and Tesla owners only RUCs, I will be forced to pay BOTH. Not to mention losing half the resale value of my vehicle. Bloody fair system eh! Good job National for joining the pathetic knee-jerk politics of the era! https://www.nzta.govt.nz/vehicles/ro...ruc-exemptions

The road tax you pay (per km) is still less than my v8 Mustang would cost (if I had one lol) That's even less fair.

[percy]

An excellent profit upgrade from Turners this morning.
I expect 2CC are also trading very well ,and should meet their guidance.
FY24 net profit after tax (NPAT) guidance to be above $6.8m.

[blackcap]

An excellent profit upgrade from Turners this morning.
I expect 2CC are also trading very well ,and should meet their guidance.
FY24 net profit after tax (NPAT) guidance to be above $6.8m.

If that is the case Percy, then I will be filling my boots. That would be fantastic. I would be happy with $6.2m but $6.8 or above would exceed my expectations. Maybe I am being a bit glass half full on this one. Time will tell.

Turners is a good signal though isn't it!

[percy]

From November interim announcement.
Outlook

Following the strong finish to the half year, and a pleasing October result with continued strong margins, the Company is increasing FY24 net profit after tax (NPAT) guidance to be above $6.8m, up from between $5.2m and $5.7m as previously communicated in September.

[blackcap]

From November interim announcement.
Outlook

Following the strong finish to the half year, and a pleasing October result with continued strong margins, the Company is increasing FY24 net profit after tax (NPAT) guidance to be above $6.8m, up from between $5.2m and $5.7m as previously communicated in September.

I see, thank you for that. They say "above". That's interesting.

[percy]

At $6.8 mil with 45,554,500 shares on issue earnings per share will be 14.92 cents per share.
I have been doing my projections on earnings of 15 cps.
PE of 5 share price of 75 cents.
PE of 7.5 share price $1.125
PE of 10 share price $1.50.
As you rightly pointed out "That's interesting"...

[percy]

At $6.8 mil with 45,554,500 shares on issue earnings per share will be 14.92 cents per share.
I have been doing my projections on earnings of 15 cps.
PE of 5 share price of 75 cents.
PE of 7.5 share price $1.125
PE of 10 share price $1.50.
As you rightly pointed out "That's interesting"...

Profit downgrade because of currency.
New projections.
$6.3 mil npat =eps of 13.82 cents giving a PE of 5.93 at a share price of 82 cents.
$6.5 mil npat= eps of 14.26 cents giving a PE of 5.75 at a share price of 82 cents.

“All businesses that buy inventory offshore are affected by exchange rate variations even when hedging is in place. Overall, the Company is in great shape and remains on course for a record-breaking result.

“A decision regarding dividends will be made by the board when full year results are approved. Provided the market remains stable, the strong performance to date indicates that a dividend at the highest end of the policy range is likely,” he said.