Ann: Profit Guidance, page-7

Hi,
Interesting article on Friday in the AFR, related to 2nd hand cars.
"Second-hand vehicle prices in Australia spiked 36 % in January from a year ago and experts say the boom won't dissipate this year because of reduced supply and hot demand".
Even if it is not very clear, I think they are just refering to cars.

However, what's interesting is the reason given for supply shortage : "car manufacturers in Europe and the US are fighting to meet orders for new cars because of Covid disruptions and a shortage of vital semiconductor chips from Asian manufacturers that is crimping production schedules and causing temporary shutdowns".
The problem does not seem to be expected to be solved in the very short term :"on Tuesday in the US, General Motors said it was cutting back production at three plants because of the semiconductor chip shortage. Volkswagen has signalled it expects chip supply to be tight until June".

We know that the motorbike industry has been affected by the same supply shortage, but I am not sure if it is exactly for the same reasons.
Would probably need to check that point with the manufacturers.
It looks like the good market conditions for the motorbike industries could continue until the end of the financial year (despite high basis of comparison in May and June), if they follow the same pattern than the auto sector.

Of course, we know that some of these conditions (good volume and rather high prices, because of supply disruption) are one offs. Anyway, they have a significant impact in term of cash generation, so they should be reflected in MTO's valuation.