2CC - 2 Cheap Cars Group

[Snow Leopard]

Probably a New Zealand company that does something in the Automobile (aka Car) space given the name.

This document confirms the above and fleshes it out to 12 car yards selling Japanese imports under the 2 Cheap Cars (really?) name plus a finance bit.

Anyway they have their own thread on ShareTrader now so that is good.

[nztx]

Good one - Snow Leopard

I was looking at the documentation filed earlier today

There are also a Japanese Buying Company & Car Rental Company which appear to be part of the group

The group looks profitable from the accounts, is paying dividends from recent accounts but like many other
retail businesses has been affected by Covid here, and offshore in Japan

Imports processing congestion & delays may or may not be an issue - if they use Ports of Auckland

As far as I can see the main Car Retail company with $200 paid capital was established in Jun 2011 (coming up 10 years ago)
and there appears to be elements of the original entities sold into the holding company in books @ circa $35 million
similar to other offering's pre IPO restructuring.

Shareholder advance accounts of $20 million each were converted to additional equity in Nov 2020 after most recent Sep accounts
provided to us. (It is assumed these arise from restructuring the companies into holding company ownership umbrella.

In common with other IPO's there are some shareholders wishing to sell down

Without in depth running the ruler over things, $1.30 start price looks reasonable IMO for what is on offer

(Compare against $1.85 - My Food Bag ; NZ $3.70 - Harmoney ; $1.25 - NZRL )

Where it goes from there - who knows..

Nothing really stuck out to be of major concern with this IPO IMO

NZA presents a fairly mature profitable business paying dividends with established brands

It may not fly to the moon, but in normal times in it's game may be very likely to be consistent
with capacity to produce results & generate good turnover levels without the lead times
& initial loss years other IPO's looked at record and project forward..

Knowing the sector - I didn't see much one couldn't like with this one

Sure there are risks / Vehicle standards, Electric Vehicles , reducing Fossil fuel dependency as we go on
industry risks / Risks in Japan / Covid effects etc etc all may apply

Just how sexy a Car Retail / Importing operation with Financing / Procuring / Rental Car arms is to potential investors
at large remains to be seen .. there isn't the grandiose puffed up promotionals with this IPO which seems
as a Compliance listing quite happy to quietly slip onto NZX boards with minimal noise & fuss ..

There is ton of supplementary accounts & information released as part of initial filing - which they have filed
(all 35,300 kb of it )

I see one of our mates starring in other listed NZX Co's (A certain Colin) seems to have found his way onto Share Register
pre-IPO, if not mistaken ..

Refer not too far down list of existing shareholders at the link under

https://coys.co.nz/:entity?no=613443...TMENTS+LIMITED


Note: NZA is currently not included in Sharesies listed Companies on their platform


( None of the aforementioned is intended or to be construed as advice of any kind, but are merely back of the card notes from reading & digging through presented info. You must do your own due diligence & where/if necessary seek your own professional advices, if in doubt or considering proceeding)

Discl: Not a holder / but may be interested

[Marilyn Munroe]

I understand the rental part of the business is defunct or no longer being actively pursued.

One of the principals of this business at one stage was publicly musing about setting up an airline.

Boop Boop de do
Marilyn

[ThaiJohn]

Mike Pero ??

[nztx]

I understand the rental part of the business is defunct or no longer being actively pursued.

One of the principals of this business at one stage was publicly musing about setting up an airline.

Boop Boop de do
Marilyn

Maybe why Mr Neal was interested .. got his own slice of Juicy, hasn't he ?

[epower]

Scouring through the NZX listings, came across NZA.

How much growth realistically is there for a company like this? They have 12 locations, a decent whack of the domestic Jap import market already.

Only growth (and a large reason for listing on the NZX) is the finance division taking off really.

[iceman]

I understand the rental part of the business is defunct or no longer being actively pursued.

One of the principals of this business at one stage was publicly musing about setting up an airline.

Boop Boop de do
Marilyn

They were a major (25% from memory) shareholder in Kiwi Regional Airlines, which folded after 7 months of operations in 2016. No doubt they learned from that sidestep.

[nztx]

Scouring through the NZX listings, came across NZA.

How much growth realistically is there for a company like this? They have 12 locations, a decent whack of the domestic Jap import market already.

Only growth (and a large reason for listing on the NZX) is the finance division taking off really.

Interesting posting

How about growth by acquisitions ?

Note the 1 March 2021 Earnings Guidance release:

https://www.nzx.com/announcements/368363

[traineeinvestor]

How does NZA compare with (i) CMO and (ii) TRA?

[Grimy]

I see they are paying a dividend this month.