Jetcon’s Net Profit Grows Due to Stronger Vehicle Sales

• Buoyed by stronger sales, Jetcon Corporation Ltd. reported a 108.5% increase in net profit to $11.59Mn (EPS: $2.00) for the Nine Months ended September 31, 2021. 
• The company was able to grow revenues by 29.9% YTD due to stronger sales relative to the same period last year. This recovery in earnings was accompanied by a decline in finance cost of 49.7%. 
• The performance was, however, tempered by an increase in total expenses of 6.5%. This was the result of an increase in costs related to sales & marketing and admin & other expenses of 4.3% and 16.5%, respectively. Sales cost also grew 33.0% ($129.16Mn). 
• With increasing vaccination rates, and decreasing COVID case rates, management hopes that restrictions will continue to ease, thus helping to fuel its recovery. Jetcon is also depending on smart marketing and pricing strategies to drive sales. Revenues for Q4 are expected to be higher than that of Q3 as sales are already exceeding that reported for the third quarter. Already, units sold in November are at Jetcon’s regular pre-pandemic levels. If this upward swing continues into December, and with increased bookings to date, the directors are hopefully of a strong fourth quarter. 
• Jetcon’s stock price has appreciated by 39.2% since the start of the year and closed Wednesday’s trading session at $1.10 per share. At this price, the stock currently trades at a P/E of 1.1x below the junior market distribution sector average of 16.0x.

(Source: Jetcon’s Financials)