The automotive industry in Singapore is home to a diverse range of companies, from luxury car distributors like Eurosports Global to electric vehicle manufacturers like NIO.
These companies offer a wide range of products and services, catering to different market segments and consumer preferences.
In this article, we will examine three such companies listed on the Singapore Exchange (SGX), examining their recent financial performance, business strategies, and future outlook.
Eurosports Global (SGX: 5G1)
Eurosports Global is a leading luxury car distributor based in Singapore. The company distributes ultra-luxury automobiles such as Lamborghini and Touring Superleggera. For instance, the company has been the sole authorised dealer of Lamborghini in Singapore since 2002 and in Indonesia since 2018.
Eurosports Global also has an after-sales services business that provides maintenance and repair services. Its subsidiary Scorpio Electric Pte Ltd recently launched a fully electric next-generation motorcycle.
For Eurosports Global’s latest financial year ended 31 March 2024 (FY2024), revenue tumbled 58.7% year-on-year, from S$60.9 million in FY2023 to S$25.1 million in FY2024. The fall was due to a drop in automobile sales on the back of higher car taxes for higher-end cars announced in Singapore Budget 2023 and the delayed deliveries of Lamborghini’s key models – Urus S, Urus Performante and Revuelto – affecting sales.
However, despite lower sales, Eurosports Global’s gross profit margin for FY2024 rose from 13.3% in FY2023 to 15.3% in FY2024, showcasing the strength of the Lamborghini brand. Lower revenue and high overheads from marketing, distribution, and administration weighed down on the company’s bottom line, despite the increase in gross profit margin.
For FY2024, Eurosports Global posted a net loss of S$8.6 million versus S$4.4 million a year back. It also had an operating net cash outflow of S$2.8 million.
Peering into the future, the company said in its annual report that deliveries of Lamborghini’s Urus S, Urus Performante, and Revuelto in the second half of 2024 are expected to improve its revenue. It also added that Scorpio Electric is “poised for growth as we are in the midst of expanding our distributor and dealer network across 10 to 15 cities in the Asia Pacific and European regions”.
Eurosports Global stock last traded at S$0.178. This gives a price-to-sales (P/S) ratio of 1.8x and a price-to-book (P/B) value of 6.7x.
Jardine Cycle & Carriage (SGX: C07)
Jardine Cycle & Carriage is a diversified conglomerate that is involved in a number of businesses, including automotive distribution.
In Singapore, the group represents car brands such as Mercedes-Benz, Kia, Mitsubishi, and Citroen. It also has other interests, such as a 10.6% stake in Vinamilk, the leading dairy producer in Vietnam. Jardine Cycle & Carriage is 83% owned by Jardine Matheson (SGX: J36).
For the first quarter of 2024, the conglomerate updated the market that it saw softer trading conditions in its businesses in Indonesia and Vietnam.
Astra, Jardine Cycle & Carriage’s major revenue contributor from Indonesia and the largest automotive group in the country, reported a 5% decrease in underlying profit, excluding fair value adjustments from its equity investments. Car and motorcycle sales were down for the quarter, reflecting subdued economic conditions.
Overall, Jardine Cycle & Carriage said that the remainder of the year is expected to be challenging due to global geopolitical and economic uncertainties. However, over the long term, it remains confident in the quality of its overall portfolio.
For the full year ended 31 December 2023 (FY2023), Jardine Cycle & Carriage’s underlying profit grew 6% year-on-year to US$1.16 billion. With that, its dividend per share also rose by the same percentage, from US$1.11 per share in FY2022 to US$1.18 per share in FY2023.
Source: Jardine Cycle & Carriage
Jardine Cycle & Carriage’s shares last exchanged hands at S$25.19 each, translating to a price-to-earnings ratio of 6.1x and a dividend yield of 6.3%.
NIO (SGX: NIO)
NIO, a global electric vehicle (EV) manufacturer, was founded in 2014 and is the first Chinese company to be listed on three exchanges: the United States (NYSE: NIO), Hong Kong (HKEX: 9866), and Singapore.
Source: NIO
NIO reported its financial results for the first quarter of 2024 (Q1 2024) last month, revealing a mixed performance marked by declining revenues and widening losses.
Total revenue for Q1 2024 stood at RMB 9.91 billion (US$1.37 billion), a decrease of 7.2% year-over-year. Vehicle revenue for the quarter fell 9.1% to RMB8.38 billion (US$1.16 billion) due to a lower average selling price and a decrease in delivery volume. NIO delivered 30,053 vehicles in Q1 2024, down 20.5% year-on-year.
Net loss in Q1 2024 was RMB5.18 billion (US$718.1 million), representing an increase of 9.4% from the first quarter of 2023.
NIO’s Q1 2024 results reflect the challenges faced by the EV industry, including intensifying competition. However, the company’s commitment to new product launches, cost optimisation, and technological advancements indicates a positive outlook for the future. Investors should closely monitor NIO’s progress in these areas to assess its long-term growth potential.
For the second quarter of 2024, the company said it expects its revenue to be between RMB16.59 billion (US$2.30 billion) and RMB17.14 billion (US$2.37 billion), representing a substantial increase of around 89% to 95% compared to exactly a year back.
NIO last traded at a share price of US$4.56, giving a P/S ratio 1.3x.
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The post Singapore-Listed Automobile and Distributor Companies: Eurosports Global; Jardine Cycle & Carriage; NIO appeared first on DollarsAndSense.sg.
