I started building my position in TPW in Jan/Feb. The first thing that attracted me in this business is its light capex and negative working capital nature. that means once it has laid foundations for basic infrastructures, it will instantly become a cash generating machine. My further research has led me to think that this business has the potential to be long lasting and sustainable for the simple fact that they are the most customer-focused retailer that I've come across so far. I was very impressed to see that on all public products review platforms(productreview.com.au, trustpilot.com, google review), TPW has been trying to reply to each one of the customer reviews, be it positive or negative. That is an invaluable practice in my eyes, as retail is all about customers at the end. You wouldn't see it in other retailers, e.g. Kogan, Adairs, etc. When I went through their annual reports, I had the clear feeling that the "customer first" stance is a top-down priority in this company, which made me feel very comfortable. Another point worth mentioning is that they distributed cash bonus to all their employees, including warehouse and call center staff, to thank them for their hard work during the pandemic. for me, a company that knows how to be grateful to their employees would not go too far wrong. Furthermore, this is a very lucrative business even at a very stage. Their gross margin, if I remember well, sits in the 40% range and is increasing year on year. This is superior to other market place like retailers. through out the past 3 years, they have certainly demonstrated good level of operation leverage, which can be seen in the expansion of the bottom line margins. All in all, this is a solid little business with great runway ahead of them. The only setback for me is that its Funder-Directors have sold two big chunk of shares so far this year. I hope they did so for good personal reasons. IMHO DYOR
TPW Price at posting:
$10.79 Sentiment: Hold Disclosure: Held
