Getting On Top of Complexity

研报英文原文证据摘录

Getting On Top of Complexity

Eagers Automotive Ltd (APE AU)

Equity Research

June 16, 2026

Company Description

Eagers

Eagers Automotive Ltd. engages in the management of automotive dealerships. Its activities include the sale of new and used vehicles; distribution

and sale of parts, and accessories; repair and servicing of vehicles; provision of extended warranties, facilitation of finance and leasing in respect

of motor vehicles; and the ownership of property and investments. The company has grown significantly over the past twenty years via acquisition,

and it now has around 14% share of all new motor vehicle retailing in Australia. Eagers operates through the following segments: Car Retailing,

Truck Retailing, Property, and Investment. The Car Retailing segment offers a range of automotive products and services, including new, used,

maintenance and repair services, parts, extended service contracts, brokerage, and protection for vehicles. The Truck Retailing segment provides

products and services, including new trucks, used trucks, truck maintenance and repair services, truck parts, extended service contracts, truck

protection products, and other aftermarket products. The Property segment includes the acquisition and ownership of commercial properties

use as facility premises for its motor dealership operations. The company was founded by Edward Eager and Frederick Eager on January 7, 1913

and is headquartered in Brisbane, Australia.

Company Valuation/Risks

We utilise one valuation methodology to arrive at our PT - DCF.

We have identified 5 key risks to investing in APE: 1) The cycle — New car volumes are at record levels and gross margins on selling new and used

cars are high and potentially at record levels. We see downside in margins though as supply opens up.