Reporters reported the stock price today (January 12, 2024). a company United Auction Ltd. (general) or August At 3:13 pm, it was at the level of 11.80 baht, plus 0.50 baht, or 4.42%, the highest at 12.00 baht, and the lowest at 11.30 baht, with a trading value of 50.44 million baht.
side Krungsri Securities Reported in AUCT stock analysis, the main business's profits are expected to reach a new record high in the fourth quarter of 2023. The main business's profits are expected to reach 104 million baht in the fourth quarter of 2023, up 10% compared to the same period of The previous year, an increase of 11% over the previous quarter because the peak seasonal period will lead to an increase in revenues to 355 million baht, an increase of 24% compared to the same period last year and an increase of 9% over the previous quarter.
Meanwhile, the gross profit margin (GPM) for the entire group is expected to be stable at around 50.5% from 50.2% in 3Q23 due to support from an increase in the number of vehicles being auctioned.
Meanwhile, Q4 2023 results will be really strong. The stock price is expected to rise again in early March. This will be supported by an increase in the number of non-performing loans at financial institutions. This means there will be more cars up for auction. Announcing the expected financial statements for the year 2023 and announcing the distribution of profits
AUCT shares are expected to be able to rise significantly again depending on events that occur in the next couple of months (1) 2023 earnings announcement (2) Q4 NPL numbers reported./66 and (3) Dividend announcement: No It is still like AUCT because (1) operating results tend to be clearly strong and (2) the dividend yield is good.
We still recommend 'buy' on AUCT with a target price of 12.80 baht. It is noted that the case for AUCT remains positive because the company will benefit from an increase in non-performing loans to financial institutions. The number of cars sold at auction has decreased due to the situation. The economy is weak and is pressuring GPM despite strong revenue growth. This will be a factor limiting the upside of AUCT stock prices in the short term.
while Mr. Waranyo Sela The CEO and Managing Director of AUCT revealed that last year 1966, 20% more used cars and motorcycles were sold through United Auction than the previous year, as the overall used car market began to recover. It is expected to continue growing throughout 2024 due to economic factors that are recovering and lending in the automotive sector that is likely to grow. Including market demand factors that are becoming more apparent.
As for the marketing plan for 2024, in addition to developing the original auction arena to be more modern. A new auction arena will also be established at the headquarters. In order to provide customers with more convenience. Since there will be a variety of service functions, the company aims to impress customers with the new services, which are expected to be available around the third to fourth quarter of 2024.
As for the regional auction, currently the company has 13 customer service points in major cities across the country to support the needs of regional customers. In addition, there are warehouses and vehicle pickup points in many other governorates, and if the market expands, more service points may be expanded.
Mr. Waranyo added that in addition to developing service points, the company also plans to invest in developing new software. It is used for used car auctions and will launch a new service called AUCT Live during this year, a technology that increases the ability to serve customers with greater convenience. At the same time, this system will also reduce employee work steps and create more efficient work. Because in the past the company has auction services for buying and selling in the arena and online auctions. Therefore, investment in software development is expected to help online auction service achieve 5-10% increase than before. Currently, approximately 60-70% of customers are using online auction service out of the company's total used car auctions. Because it makes customers get more convenience. Because the online system can know the details of cars and various product features in more detail.
“All the time, AUCT has attached importance to the continuous development of services in various forms. Because the used car auction industry is experiencing intense competition. In addition to the strength in leadership that is transparent in service you must also give importance to good service in acting as an intermediary between buyers and sellers. In order to obtain To the maximum satisfaction of both parties. Mr. Waranyo He says
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