China Auto Logistics Inc (NASDAQ:CALI) FY2016 Revenues Jumps 4.6%

China Auto Logistics Inc (NASDAQ:CALI)

China Auto Logistics Inc (NASDAQ:CALI) posted that robust Q4 auto sales was a major factor in the 4.6% YoY jump recorded in net revenues for FY2016. Moreover, improved 2016 YoY bottom line performance in financing services reduced the firm’s net loss in 2016 as against year ago results.

Following the positive numbers announcement, the stock of China Auto jumped over 41% to close the day at $4.04. During the course of yesterday’s trading session, the stock also registered a new 52-week high of $4.69.

The financial performance

China Auto Logistics Inc (NASDAQ:CALI) reported that net revenue for the year closed December 2016 came in around $467 million compared to revenue of almost $446 million in the prior year. During FY2016, the firm sold 4,438 automobiles compared to 4,199 automobiles in the same period, a year earlier. The average unit sales price came at $104,000 compared to $105,000 in 2015, while the gross margin stood at 0.20% in FY2016 versus 0.26% in the same period, a year ago.

This was an indication of the increased competition in the imported automobile industry, and the firm’s attempt to continue to be a leader in this tough market.

China Auto Logistics Inc (NASDAQ:CALI)’s best three selling brands in FY2016 were Land Rover, Mercedes Benz, and Toyota. Its strongest sales in FY2016 occurred in Q1 2016, followed by weaker sales in Q2 2016 and Q3 2016, reflecting the response of the dealer clients to currency fluctuations. The strong sales recorded in Q4 2016, in part, may have shown depletion of built-up stock earlier in the year.

Financing Services in FY2016 was again the leading contributor to the firm’s operating income and provided larger profit margins against automobile sales. While net revenues came in at approximately $4.314 million in FY2016 compared with about $5.567 million in FY2015, reflecting drop in both interest income and fee income, the gross margin for this segment jumped to 46.28% in FY2016 versus 39.52% in FY2015.

As of close of December 2016, China Auto Logistics Inc (NASDAQ:CALI) recorded aggregate credit lines of almost $125 million to advance its financing services. These credit lines remain with many of China’s leading commercial banks.

Ticker Symbol CALI
Last Price a/o 3:21 PM EST  $4.04
Average Volume 78.47K
Market Cap (mlns) $ 16.20M
Shares Outstanding (mlns) 4.01M
Share Float (mlns) 2.39M
Inside Ownership 40.85%
Short Float 0.39%
Short Interest Ratio 0.12
Quarterly Return 17.10%
YTD Return 17.75%
Year Return 292.23%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

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Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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