Auction Technology Group A welcomed revival through execution & leadership - reiterate our positive stance on the stock

研报英文原文证据摘录

Auction Technology Group A welcomed revival through execution & leadership - reiterate our positive stance on the stock

ainst this backdrop, we Specialist Sales contact details:

margianlly lift estimates (FY26E adj. EPS +1%) and reiterate our positive stance

Scott Silver - Specialist Sales -

on the stock. European TMT

(44-20) 7134-0412

• Key feedback from the conference call: 1) FY26 was framed as a structural scott.silver@jpmorgan.com

margin low point (shipping fully annualised; Chairish in the base), with margin

Style Exposure

progression thereafter expected to be driven by higher-margin commission

growth, Chairish synergies and ongoing efficiency/self-help. 3) With

incremental cost actions implemented at end-H1, ATG guided to a c.$4m FY27

benefit with limited FY26 impact due to timing, alongside a $2m exceptional

charge in H1. 4) A&A execution (LiveAuctioneers focus): Management

highlighted continued take-rate expansion (including an estimated ~+1ppt

benefit from atgShip/Chairish mix), with execution centred on converting

demand into transactions (UX), improving discovery/ranking, maximising

sell-through and price realisation, and increasing revenue per transaction via

deeper VAS attachment. Investment remains concentrated on LiveAuctioneers

with intent to replicate learnings across other platforms over time. 5) VAS /

monetisation: Management described shipping and payments as profitable

albeit lower margin, with focus shifting from rollout to penetration and margin

optimisation. atgPay remains predominantly A&A-led, with shipping and

payments increasingly co-adopted, supporting uptake. 6) I&C headwinds /

competitive dynamics: Management acknowledged I&C remains pressured by

the ag-cycle/green iron weakness, white-label adoption and auction house