Chinese Used Car Retailer Uxin Aims For Achieving Overall Profitability By 2024: Details
Portfolio Pulse from Anusuya Lahiri
Uxin Ltd (NASDAQ:UXIN), a Chinese used car retailer, reported a 42.5% Y/Y decline in Q2 FY24 sales to $48.8 million and a 35.8% decrease in transaction volume. The adjusted loss per ADS was $(0.01). Despite the decline, the gross margin improved to 6.2% from 1.3% Y/Y. The company aims for EBITDA profitability at the superstore level by March 2024 and overall company profitability by September 2024. Q1 revenue also fell by 53.8% Y/Y to $39.9 million. Uxin anticipates Q3 revenue between RMB 410 million to RMB 430 million. The stock is down 61.2% YTD but traded 2.15% higher premarket.
November 28, 2023 | 11:23 am
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Uxin Ltd reported a significant decline in Q2 sales and transaction volume but improved gross margins. The company is aiming for profitability by 2024 and expects higher Q3 revenue. The stock price saw a slight increase in premarket trading.
While Uxin's sales and transaction volumes have declined, the improvement in gross margins and the company's profitability goals for 2024 may instill some investor confidence. The expected increase in Q3 revenue and the slight uptick in premarket trading suggest a neutral to potentially positive short-term impact on the stock price. However, the significant YTD loss indicates that the stock may still be under pressure.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100