SIQ +7.37%: A very good result from SIQ with revenue and earnings ahead of expectations and an ordinary dividend mildly above forecast, plus a special dividend that was expected. We had concerns ahead of this result given weakness in the local car market, however, they’ve proved us wrong.
- FY24 Revenue $305.8 million, up +22% y/y and ~1.5% above consensus.
- Underlying net profit of $72.4 million, up +15% y/y and around 3% ahead of consensus.
- Final dividend per share $0.20 plus a special dividend/share $0.11, taking the FY25 payout to 48.5cps fully franked, about 7% ahead of expectations.
- The dividend represents a 90% payout of profits and puts SIQ on a yield of ~6%.
They didn’t issue specific guidance for FY25, though what they did say was positive. i.e. Cautiously optimistic for year ahead with January orders and settlements “slightly up” y/y. The Industry dynamics across all business lines remain competitive and they highlighted the end of plug in hybrid EV incentives that roll off next month, which we think would have pulled forward demand.
MM is neutral SIQ
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