AUCT, just reports impressive 1st Q. results -as did TOG the week before.
AUCT (8.35) keeps reporting impressing & growing earnings results, yet again. AUCT (8.35) along with TOG (11.10) have for long been my last & final solid choices here. And remain so. I reviewed for members in our lounge TOG's 1Q. last week, see here: https://thaistocks.com/content/tog-first-q-2024-solid-report
"United Auction Company We are experts in the auction service business for more than 30 years. In addition to our long experience that creates continuous expertise. The company also provides complete and complete auction services." See more here: http://www.auct.co.th/
Rather then a long over-analysis here on AUCT's financial result see its summary tables below, as just published by AUCT (to the SET) late on Friday May 10: (log on to see 2 tables). Its a fabulous report with net income increasing a touch over 25%, both Q. over Q. and Q. as compared to last years' same first Q. Note how both Gross and Net Profit are high -and increasing! Hence as for long here re-stated, AUCT & TOG are and remain my top/final choices as I hang up my hat here...this during the long predicted prolonged Thai stock Thai bear market. AUCT's return on equity (ROE) remains an impressive 54%! I expect its dividend to be increased yet again, so AUCT being one if not the highest dividend payer here, even while being in a defensive industry. (i.e. actually benefiting from Thai's middle income trap). In 2024, AUCT plans to diversify its business beyond car auctions to a broader auction platform service that extends beyond just vehicle auctions to land and second-hand electrical appliances. AUCT also plans to expand selling channels for automotive related goods. Regardless of its stock price weakness of just late (due to Thai stock bear market), I predict Thai analysts whom follow AUCT will have to increase their net profit estimates now, to above 400 mill for all of year 2024. A long with recognizing its so now one of the highest dividend payer of any SET/Mai listed stock here.
AUCT just paid a 0.37 Baht per share dividend on May -and I expect/predict another interim one of 0.28 Baht in early September, so the current tame price of 8.35 Baht its current annual dividend yield is 7.7%! (Or say 6.5% if one's average cost price is around 10).
Is a telling upbeat mgt. statement in its Q. review published on May 10: "The higher household debt, personal loans that continue to expand, the economic slowdown, and delays in government budget expenditures, are supporting factors to make the vehicle volumes continue to flow into the auction business in 2024. The part of plans to increase warehouse areas and distribution of auctions to the regions to circulate products for fast sale has been successful, the success rate and average auction ending price level have an upward trend from the end of last year, which positive effect on the company. In addition, the Company continues to increase business partners both financial and non-financial institutions, resulting in the managing direction of the auction still accomplishing the target".
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