probably the large WA exposure factors at present, that market isn't doing great based on FCAI data, and the mining outlook.
Also, AP has fewer shares on issue, a higher equity ratio, and a higher tangible net worth. (AHE has more intagibles). Also, the higher net profit margin you mentioned is another obvious part of the pricing.
In addition, AP has historically been priced much higher, so its current price is relatively average compared.
Regardless, I think AHE is the better value buy.
I doubt APE would easily merge with AHE, although not impossible. Allot of the brands dont like franchise concentration, so this could cause some unsynergistic outcomes from that perspective - if u own 10 of a frachise you have some serious bargaining power and concentration risk - allot of brands limit this to 4-5 franchises nation wide, so they may need to shed some quality Prime market franchises to join....
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probably the large WA exposure factors at present, that market...
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