2CC - 2 Cheap Cars Group

[lorraina]

Improved momentum into FY26 final quarter

2 Cheap Cars Group (2CC) has delivered an improved trading performance through the latter part of the third quarter and into the early fourth quarter of FY26. This has been underpinned by better vehicle margins and robust finance and insurance (F&I) penetration rates, reflecting the Group's continued focus on operational excellence and customer value.

The recent Government adjustments to carbon credit rates under the Clean Car Standard are further bolstering margins. As inventory accepted under the new settings is sold, these benefits are set to continue, delivering an uplift in margins through the fourth quarter of FY26.

On the back of this improving performance, 2CC now anticipates second-half FY26 net profit after tax (NPAT) to reach or exceed $2.0 million, with full-year FY26 NPAT expected to be at least $3.0 million. These forecasts remain subject to final audit and standard year-end adjustments.

While the Board maintains a prudent stance on the broader economic environment, the Group's recent profitability gains provide momentum as FY26 concludes.

[winner (n)]

I have 2CC having a PEG in excess of 2 .....hmmmm

[lorraina]

Does not look good for their PEG for year ending 31/3/2026.
However, the trading momemtum has returned with a good second half expected after the Govt changes that affected the poor first half,were altered on 1/01/2026.
I expect the year starting 1/4/2026 will see the momentum continue,and the PEG will go back under 1.[Perhaps .6].
I also expect ROE [currently 15.67%] and Gross Dividend yield [currently 8.008 %] will increase too .I am expecting a gross dividend yield of 10 % plus.
We have not yet seen the full results of their updated procurement [Japanese buying] and logistics,adding a lot more cars for them to sell.Still a work in progress.
What has been good to see is their increase in both finance and insurance penetration.
With an excellent web site I am looking forward to seeing stronger marketing from 2CC in future.

[lorraina]

An excellent second half after the difficult first half.
• Revenue and income: $81.7m, down 0.3%
• Gross margin: $17.4m, down 2%
• Vehicle sales: 7,239, compared with 7,675 units in FY25
• EBITDA including finance income: $8.1m, up 1%
• Net profit after tax (NPAT): $3.2m, compared with $3.3m in FY25
• Underlying earnings per share (EPS): 7 cents per share (cps), unchanged from FY25
• Final gross dividend: 3.99 cps
• Total FY26 gross dividend: 6.14 cps vs 6.03 cps