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AUTOMOTIVE HOLDINGS GROUP LIMITED (AHE)

AUTOMOTIVE HOLDINGS GROUP LIMITED (AHE)

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General Information
Company Name: Automotive Holdings Group Limited
Stock Code: AHE
Website: www.ahgir.com.au
GICS Sub-Industry: Automotive Retail
Market Cap ($M): 539
Equiv. Shares (M): 261

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 2.070 $ 2.060 $ 2.070 $ 2.050 $ 2.070 62,162 0%

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 6th Feb 2012
12 Month Target Price (average): $2.415
Brokers Surveyed: 4

Company Overview

Business Description:
Automotive Holdings Group Limited (AHE) is a motoring retail and logistics group. The Group operates commercial vehicle dealerships throughout Australia and New Zealand. The company operates logistics businesses throughout Australia through its subsidiaries.

Strategy Analysis:
In the short term, AHE is focused on maximising returns from its existing businesses via an emphasis on cost control, inventory management and protection of margins. The development of 'Automotive Hubs´ such as Wangara and Rockingham in WA and Castle Hill in NSW are a key strategy. AHE's longer-term growth strategy is to pursue selective acquisitions across Australasia that creates long-term value for shareholders. AHE aim to establish new dealerships on greenfield sites, add new franchise brands to the automotive retailing portfolio, expand the logistics business through broadening the service offering to customers and focus on customer service and staff retention. Automotive Holdings reported NPAT down 48.3% to $31.22m for the year ended 30 June 2011. Revenue from ordinary activities were $3,34bn, up 3% from last year. Basic and Diluted EPS were 13.5 cents compared to 26.7 cents last year. The net operating cash inflow was $66.45m compared to an outflow of $133,000 in the pcp. The final dividend declared was 10 cents, taking the full year dividend to 17 cents compared with 17 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 69.9 26.8 13.1 7.7 18.5 8.9 --
2012  F 61.6 23.7 6.8 8.7 17.5 8.5 --
2011  A 51.1 22.2 -9.0 11.0 17.0 7.0 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Automotive Holdings (AHE) $539 M -0.0914 0.0677 0.1344 9.3412 8.7489 7.7124 0.0821 0.0845 0.0894
ARB Corp (ARP) $613 M 0.1285 0.1624 0.1372 16.1976 13.9351 12.2538 0.0272 0.0307 0.0343

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
AHE 0.77 8.97 1.20 0.89 0.14
Market 0.82 12.5 1.38 1.18 1.90
Sector 0.74 10.53 1.85 1.16 0.67

Directors
Name Position Start Date
Mr Hamish Calder Williams Finance Director 29 November 2004
Mr Bronte McGregor Howson Managing Director 29 October 2004
Mr David Charles Griffiths Non-Executive Chairman 27 February 2007
Mr Michael John Smith Non-Executive Deputy Chairman 06 May 2010
Mr Peter William Stancliffe Non-Executive Director 25 November 2005
Mr Giovanni (John) Groppoli Non-Executive Director 04 July 2006

Management
Name Position
Ronald Michael Nuich Chief Financial Officer
Eugene Kavanagh Chief Information Officer
David A Rowland Company Secretary
Gus Brian Kininmont GM Finance
John (Jack) Bernard Moroney GM Organisational Effectiveness

Substantial Shareholders
Holding Name
52,032,668 (19.96%) PFV Pty Ltd
13,545,066 (5.20%) Zero Nominees Pty Ltd
17,654,091 (6.77%) Auto Management Pty Ltd

Calendar of Events
Date Event
16 October 2012 Report (Annual)
21 September 2012 Report (Annual)
24 August 2012 Report (Prelim)
17 February 2012 Report (Interim)
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