Very good result considering the state of the economy.
Being invested in used cars has been extremely profitable lol
good result , have a good read later but quick glance looks like auto going gangbusters esp margin expansion
A good result even though finance division is struggling with NIM dropping.
Finance not long ago generated more income than auto if i recall correctly.
If we are at peak rates the finance division is going to start generating much better returns and if auto carries on smashing it out of the park then we are in for some great years ahead with healthy increases in EPS and DPS
Yes a very fine result.
One thing that puzzles me is their commentary and conservativeness on the full year dividend guidance.
YTD declared divs of $10.5m is 56.8% of NPAT of $18.5m. Or in round terms 12 cents a share.
Last year first half divs of $8.67m was 50.7% payout of $17.1m. Or in round terms 10 cents a share.
NPAT current up +8% on last year, DPS up 20% or 2cps.
But the full year "at least" guidance of 24cps is only 1 cent more than last year or up 4%. If 24dps was achieved that would imply 2H dividends per share would have gone backward by 1 cent. Doesn't feel like a realistic outcome and 25dps for the full year would be achieved even if the remainder of the year repeated last years second half. And I'd hope for a bit of growth on top of last years result.
MGMT obviously balance the comment by saying "at least" but wonder if overly conservative and doing a very slight deserve by focusing on the gross yield at what would appear to be a highly conservative 24dps forecast.
I might be splitting hairs or perhaps missing something in terms of what is to come in the 2nd half (perhaps capex associated with the network buildout?)
Fully agree ...Nice result inspite of finance division under pressure ...so automatically it will become accretive when rates outlook / NIM improve ...something else to look forward to . NZX50 inclusion on cards ...shud propel it to $ 4.50 today or soon ...all must be rejoicing making money out of used cars ...Rawz did the best ...he has both beauties ...Percy too !! Well done mates :t_up:
PS : W69 / Mr B's plan working very fine ...$ 4.50 after results ...$ 5 after inclusion announcement ...Party time for all :p
I admire TRA as it has done well in spite of market conditions not because of them. Business has done a fantastic job with its brand, retail strategy, smartly developing and building out its network, etc. And I am hopeful the used car market by vehicle numbers has turned a corner (graph on page 6 of preso) which all else equal should provide a tailwind together with (hopefully) NIM tailwinds should interest rate recede at some point. Marketshare holding up and improving but one thing to keep an eye on is the # of registered dealers also looks to have bottomed and might be improving (page 7 preso) so will be important to watch those marketshare stats in the future, though the business seems to have the initiatives in place to improve marketshare to their 10% target.
Enjoyed the presentation this morning and always get a lot of confidence when I hear management speak. These guys are 100% across the business and good buggers to boot. Provided more flavour on what to expect on the 2h, some of the seasonality patterns relative to last year (timing of easter may bring down the month of march etc), and a reminder on the cyclone damage one offs earlier in the year.
$4.50 seems highly likely today, and certainly by week's end as this result is fully digested by Mr Market. And we will know by 1 December whether index inclusion has indeed been secured so further increase beckons, although given inclusion would not be a surprise you would expect index funds to have some preparitory strategy in place already.
My small holding of TRA is becoming a bigger proportion of the portfolio as the fortunes of TRA rise
had a good read of results now , got a few questions nothing major just some clarifications on stuff