$Sonic Automotive (SAH.US)$Current price: 50.1, position pro...

New data: the second two quarters of 2022 and the whole year, the first two quarters of 2023

In 2022, revenue increased by 12.9%, operating profit increased 17.8%, and net profit declined sharply by 74.6% due to impairment of 320 million capital assets.

Revenue for the first two quarters of 2023 increased by 2.6%, operating profit fell 20% due to the decline in gross margin, and net profit declined 63% due to impairment in capital assets of 63 million yuan.

Currently, the price-earnings ratio is 22.5, and the price-earnings ratio TTM is already in a state of loss. If you calculate the 5-year average net profit of 116 million yuan, the price-earnings ratio is 15.3, and long-term loans of 1.63 billion yuan are nearly double the net assets of 877 million yuan. Overall, it seems that the valuation is too high, and the position has been closed and exited.