Kevin: Thanks for your comment. It has been over a 12 months since I browse the reserve and I cannot remember what it was about his internet investment ideas that I did so not like. I have not read any other trading books that address future needs. However, I think it’s important to make a variation between book and ongoing future needs.
Auction houses and online marketplaces like Chrono24 and YNAP have frequently been pointed out as the bigger players to serve the secondary market. Yr results that they announced was an extremely strong one The recent FY19 full. In fact, if we look across the performance within the last a decade, the management did a good job in growing all areas of the financials.
721m in 2019 while they were able to boost their GP margin from 20.1% this year 2010 to 27% in 2019. NP margin has improved from 6.9% in 2010 2010 to 9.9% in 2019 at the same time. The profits from the share of associates also increased over the years as they expanded into regional buying more JV and Associates with some of the blissful luxury watch retailers titles. The relationship they have with Hublot in 2018 is the latest JV they’ve partnered. From a cashflow perspective, the business in addition has done effectively, producing good amount of cashflow over the entire years.
48m in free cashflow, with results in a 9% fcf yield. Based on the desk below appended, you can view that they generate a great deal of cashflow within an uneventful years where they do not have to spend a great deal of capex. But the chances of that happening should be low.
- Avoid mistakes, learn before trading
- Identify risks and opportunities
- ► May (3)
- Save on Car Insurance
- 2% per thousand 20 per 1000
I think they would want to fully capture more market share given the rising sentiments of the middle income group across Asia, they would be growing hence. From an equilibrium sheet viewpoint, it appeared healthy as well really. 14.9m as the business’s generation of free cash flow enable them to settle the majority of the borrowings in 2019. The borrowings should be paid likely by next season.
166m, the best being that they are listed. NAV reaches 79 cents, which bulk consists of the cash, investment properties, inventories and property, plant or equipment, all good property type really. Based on 9.99 cents EPS for FY19, this translates to 7.5x PER predicated on the last closing price of 75 cents. This definitely looks cheap from a historical perspective but the bigger question remains why isn’t the marketplace re-rating them with higher valuation and with an increase of love. The reason why I suspect is basically because the company has done an extremely good job on all fronts in 2019 but we have no idea if this would be the new norm.