Motorcycle Sales Rebound From Lockdown Mark Hinchliffe·...

Motorcycle Sales Rebound From Lockdown
Mark Hinchliffe·
Motorbike newsSales
·9th October, 2020
Motorcycles appear the preferred COVID lockdown vehicle with Australian sales booming after a slow start to the year due to with fires, drought, floods and then the COVID lockdown.
The official Federal Chamber of Automotive Industries (FCAI) sales figures for new motorcycles and off highway vehicles (OHVs) to the end of September 2020 show a 26.4% rise over the same period last year.

A total of 79,623 vehicles have been sold.
FCAI boss Tony Weber says these strong sales results were in direct contrast to the majority of Australian industry sectors, many of which had reported negative growth during the COVID-19 pandemic.
In fact, Aussie car, truck and bus sales are down 20.5% for the same period with 644,891 sales.

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This 26.4% increase across the board in sales, matches up with the figures from the company in their recent presentation. No surprises there.

To put some perspective into how cheap the stock maybe - their gross reported revenue from last year of $364m , would increase to circa $500m. (verse their market cap of $160m). HELLO.

Last year they reported underlying NPAT of $15.2m and $27.6 EBITDA. The company today has more cash that their borrowings and been established for more than 30 years. A trailing PE of 10 is too cheap in this current world low interest environment - the company has just guided MORE than EBITDA of $20m for this half (as I say, verse all of last year $27.6 EBITDA).

These boom sales figures may not continue, but the market cap was too cheap even prior to what we are seeing happen. It may more up past a SP of $3 on light volume - and then we can look at next quarters sales figures.