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• Revenue Growth: Year-on-year sales growth of 12.4%.

• Operating Profit Growth: Increased by 15.4% year-on-year.

• Equity Ratio: Maintained at 43%.

• Return on Equity (ROE): Recorded at 19%.

• Market Share: Increased to 12.3% in the used car market.

• Units Sold in Q4: Total of 36,401 units.

• Inventory Turnover: 10.5 times with 35 days inventory outstanding.

• Retail Units Sold: 26,076 units, up 5.8% year-on-year.

• Online Retail Sales Growth: Increased by 5%.

• Offline Sales Growth: Increased by 6.7%.

• Auction Sales: Total of 14,914 units, a quarterly record high.

• Average Selling Price (ASP) - Retail: 16.92 million won, down 0.6% year-on-year.

• Average Selling Price (ASP) - Wholesale: 4.89 million won, up 0.3% year-on-year.

• Gross Profit: 55.8 billion won, up 12.3% year-on-year.

• Gross Margin: 10.6%, up 0.6 percentage points year-on-year.

• SG&A Expenses: 40.51 billion won, 7.7% of revenue.

• Operating Profit in Q4: 15.31 billion won, up 28.2% year-on-year.

• Operating Margin: 2.9%, up 0.5 percentage points year-on-year.

• Capex in Q4: 5.1 billion won, 0.3% of revenue.

• Warning! GuruFocus has detected 3 Warning Sign with XKRX:381970.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• K Car Co Ltd (XKRX:381970) achieved a year-on-year sales growth of 12.4% and operating profit growth of 15.4%, demonstrating strong financial performance despite challenging market conditions.

• The company maintained a robust equity ratio of 43% and an ROE of 19%, indicating solid financial health and efficient use of equity.

• K Car Co Ltd increased its market share to 12.3%, reinforcing its leadership position in the used car industry.

• The company won the Korean first brand award for the 6th consecutive year in the used car distribution category, highlighting its strong brand value and competitiveness.

• K Car Co Ltd achieved a quarterly record high in auction sales, with a total of 14,914 units sold, showcasing strong performance in its auction business.

Negative Points

• The company faced a contraction in consumer sentiment due to high interest rates and economic uncertainties, impacting overall market conditions.

• Retail ASP decreased by 0.6% year-on-year and 1.8% quarter-on-quarter, reflecting challenges in maintaining pricing levels amid economic slowdown.

• Despite strong sales growth, the company experienced a slight drop in retail GPU on a quarter-on-quarter basis, indicating pressure on profit margins.

• K Car Co Ltd's marketing expenses increased by 38.5% year-on-year in Q4, reflecting a shift in marketing strategy and potentially impacting cost efficiency.

• The economic slowdown in Korea has led to a decrease in the number of registered vehicles, posing challenges for market growth and consumer demand.