Latest news with #CombinedMotorHoldings'
IOL News
29-04-2025
- Automotive
- IOL News
Combined Motor Holdings faces challenges with a 26. 2% profit decline
Combined Motor Holdings CEO Jebb McIntosh said industry leaders had predicted that national vehicle sales would increase between 3.5 to 5% this year, but all views hinged on significant caveats, particularly relating to interest rates and political stability. Image: Supplied Combined Motor Holdings' (CMH) headline earnings a share fell 25.6% in the year to February 28 as vehicle affordability continues to wane among South African consumers. The dividend declared fell 22.3% to 171 cents a share from 220 cents last year. Revenue increased 3.2% to R13.25 billion. Total profit fell 26.2% to R301.49 million, marking the second year in a row of decline. CMH operates in the motor retail and distribution, car hire, and financial services segments in South Africa, employing 2,666 people. It has 43 retail motor dealerships representing 29 brands in Gauteng, KwaZulu-Natal, and the Western Cape. Its Mandarin Parts Distributors business imports aftermarket vehicle parts. CEO Jebb McIntosh said in the results that while a mild resurgence in new vehicle sales in the last quarter was encouraging, it was insufficient to rescue the market and lift it to the 2019 pre-Covid level. 'Vehicle finance houses have recorded that few newcomers are being added to the customer base, with only 10 million of 65 million South Africans being able to afford a vehicle, let alone a new luxury vehicle sales market has been hardest hit in recent years and has been in decline for almost a decade,' he said. Looking to the new financial year, he said industry leaders had predicted that national sales would increase between 3.5% to 5% this year, but all views hinged on significant caveats, particularly relating to interest rates and political stability. 'Early economic optimism has been curbed somewhat by the furore that followed the advance leaking of the government's intention to raise the VAT rate by two percentage points. The group's prior year losses on Proton have been stemmed, and a significant return is expected from the first full year of Foton activity,' he said. Although not yet back to pre-Covid levels, inbound tourism potential growth provided some optimism for the car hire segment. 'The predicted, although seemingly stalled, trend of interest rate cuts will also provide welcome relief against fleet borrowings,' said McIntosh. He said that in the past year within the group, several dealerships underwent costly restructuring and repositioning to take advantage of brand and product changes. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ford was now more focused on the light commercial market; although it had shown growth in various segments, its scope was more limited. Nissan was no longer producing its previously very popular and affordable half-ton and one-ton pickups. Some of its key models sourced from Japan had been discontinued because they were no longer affordable locally. Volvo's intention to focus on electric and hybrid models had severely hampered its local attraction. The dealer network had been cut from 25 dealers to 7, which would operate only in the major metropolitan areas. CMH would operate 4 of the 7 survivors and expected to benefit from a greater share of the workshop and parts sales business. The Proton import and distribution operation continued to be challenging. Current inventory would be sold during the first half of the coming year, and thereafter the group and the Malaysian manufacturer would decide on the way forward. In contrast, the September introduction of the Foton light commercial range had exceeded expectations. The launch was well supported by the Chinese manufacturer, and the product featured in the February local top 10 sales list for commercial brands. He expected sales to enjoy a further surge in June when a new cabover model would be launched. A network of 55 local dealers had been established, of which 14 were owned and operated by CMH. A further 5 dealers would be added this year. Foton was expected to be a meaningful profit contributor in the year ahead. BUSINESS REPORT
Yahoo
25-03-2025
- Automotive
- Yahoo
Those who invested in Combined Motor Holdings (JSE:CMH) five years ago are up 298%
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. Long term Combined Motor Holdings Limited (JSE:CMH) shareholders would be well aware of this, since the stock is up 128% in five years. Meanwhile the share price is 1.5% higher than it was a week ago. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, Combined Motor Holdings achieved compound earnings per share (EPS) growth of 9.9% per year. This EPS growth is slower than the share price growth of 18% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). This free interactive report on Combined Motor Holdings' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Combined Motor Holdings' TSR for the last 5 years was 298%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! It's nice to see that Combined Motor Holdings shareholders have received a total shareholder return of 41% over the last year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 32% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Combined Motor Holdings that you should be aware of. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South African exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
