HPG 0.93% $1.06 hipages group holdings ltd

News: HPG Hipages Posts Q3 Total Revenue Up 11% On Pcp To A$15.9M, Up 6% On A Lfl Basis, page-3

  1. 151 Posts.
    lightbulb Created with Sketch. 75
    good comment - i had similar thoughts and churn is definitely their Achilles heal. I would add that the industry has copped a huge flogging which would cause temporary churn - it may not be a product/market fit issue:

    - construction trades insolvencies are really high at the moment (38% increase in construction according to ASIC).
    - VIC and NSW had big construction shut downs in oct nov for covid (subscription cancellation payout clauses may push those companies to churn out in jan)
    - inflation and building materials availability is slowing jobs down. eg: australia has almost run out of timber
    - Jan, Feb and March had huge problems Australia wide with COVID outbreaks and 7 day isolation requirements. Tradies just couldn't keep themselves or their employees on the job.
    - March had enormous floods in Sydney and Brisbane which shut down construction for up to 3 weeks +

    All of these issues compound to cause temporary churn. On the flip side - floods and covid stimulus usually make for good building demand on the rebound........next quarter we will see if it was market issues or product issues.





 
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