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25-05-2024, 01:29 PM
#751
Originally Posted by percy
"The property strategy is a key growth factor for 2CC, with positive steps being taken to identify and develop new or better retail locations which benefit its scale model, particularly in Auckland."
This may explain the build up in stock.
Yes I think that’s part of it but surely cannot account for the full $3m difference. Maybe just got stuck with an overhang of hybrids after the subsidies finished? I’m not concerned, just trying to figure out true operating cashflows.
By memory last year they finished with $8m inventory so it’s quite incredible how they have pumped that up to $13m and managed to pay out a huge dividend and remain in a net cash position. Just goes to show how much cash this business generates.
Nb. They are still collecting cash from the old loan book being repaid
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25-05-2024, 02:05 PM
#752
Originally Posted by Rawz
Yes I think that’s part of it but surely cannot account for the full $3m difference. Maybe just got stuck with an overhang of hybrids after the subsidies finished? I’m not concerned, just trying to figure out true operating cashflows.
By memory last year they finished with $8m inventory so it’s quite incredible how they have pumped that up to $13m and managed to pay out a huge dividend and remain in a net cash position. Just goes to show how much cash this business generates.
Nb. They are still collecting cash from the old loan book being repaid
2 Cheap Cars continues to be well positioned to meet the ongoing demand for electric and hybrid vehicles (EV/HEVs). Despite regulatory changes and removal of the clean car discount, the number of EV/HEVs sold as a proportion of total vehicle sales increased to 56%, up 14% on the year prior. Demand – particularly for cost effective HEVs – remains stable, accounting for 54% of total vehicle sales in the last quarter of FY24.
The Company is well positioned with inventory valued at a healthy $13.9m, (up $5.5m over FY23 which was impacted by shipping constraints).
NZ Motor Finance loan book remains in run down mode, reducing from $3.9m at 31 March 2023 to $1.8m at 31 March 2024 and making a profit of $0.05m for the year.
A few things to look forward to;
a] News on new branches or upgrades of existing branches.[Auckland].I would like to see them own and develop their own sites,as per Turners.
b]Update on EV/HEVs sales %.
c]Inventory level compared to sales,ie stock turns.
d] Love to know how well the "win a free car" promotion went.
Last edited by percy; 25-05-2024 at 02:20 PM.
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25-05-2024, 02:25 PM
#753
Thanks Percy, I missed that part.
I wouldn’t be in favor of them owning their sites. Especially in Auckland where land is terribly expensive. Prefer capital lite model with leased premises
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25-05-2024, 03:19 PM
#754
Originally Posted by Rawz
Thanks Percy, I missed that part.
I wouldn’t be in favor of them owning their sites. Especially in Auckland where land is terribly expensive. Prefer capital lite model with leased premises
Think you are right.
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30-05-2024, 08:47 AM
#755
ASB have updated.2CC.
52 week high $0.930 52 week low $0.260
Dividend CPS 8.32 Dividend yield (Net) 9.24%
EPS 13.70 P/E ratio (Adjusted) 6.57
NTA 44.00
Market capitalisation $40,999,050.00
Low PE ratio
high NET dividend yield.
Last edited by percy; 30-05-2024 at 08:50 AM.
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30-05-2024, 09:21 AM
#756
Originally Posted by percy
ASB have updated.2CC.
52 week high $0.930 52 week low $0.260
Dividend CPS 8.32 Dividend yield (Net) 9.24%
EPS 13.70 P/E ratio (Adjusted) 6.57
NTA 44.00
Market capitalisation $40,999,050.00
Low PE ratio
high NET dividend yield.
Jarden and Sharesies havent updated the dividend yet. I suppose they wait for the funds to be paid so need to wait for June. Both of them show gross dividend so hopefully punters get excited by see a 12-13% dividend yield
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31-05-2024, 11:05 AM
#757
sharesies showing gross dividend yield of 14.10% based on current price.
jarden showing 13.6% based on previous close
amazing yield AND PROFITS EXPECTED TO GROW IN FY25
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13-06-2024, 06:25 PM
#758
Can’t wait for the juicy divvy to hit the bank a/c tmrw.
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14-06-2024, 10:08 AM
#759
Originally Posted by sb9
Can’t wait for the juicy divvy to hit the bank a/c tmrw.
Mine's there already today...
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27-06-2024, 09:04 AM
#760
OUTLOOK
FOR FY25
With the transformation now complete, the
Company’s focus remains on delivering gross
margin over market share, continuous BAU
improvement and profitable, sustainable
growth through its property strategy.
The property strategy is a key growth factor
for 2 Cheap Cars, with positive steps being
taken to identify and develop new or better
retail locations which benefit its scale model,
particularly in Auckland.
2 Cheap Cars has a very clear value proposition
and strategy that compares favourably to
many competitors, particularly in the prevailing
economic environment. Having said that,
market conditions and foreign exchange rates
remain unpredictable and are – as always –
beyond any Company’s control.Affordable cars are a necessity, and we are
confident the Company is well positioned to
take advantage of increases in immigration and
the more general consumer flight to cheaper
vehicles. However, the business is under no
illusion that to remain profitable it must
continue to be vigilant and diligent with costcutting and supply chain efficiencies.
Assuming favourable supply, currency and
trading conditions, NPAT is expected to
remain steady in FY25 by focusing on gross
margin expansion, prudent cost management,
increasing direct control of the value chain and
sensible expansion in Auckland.
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