Member Info for sparky333

Agreed on H2 especially as for this year they upped bad debt provision from 0.9 to 3% I expect it will be nowhere near 3% so more to the bottom line.

Not exceeded by but ‘Significantly’ that is a strong word

https://www.proactiveinvestors.co.uk/companies/news/992515/yue-group-says-profits-significantly-exceeded-management-expectations-992515.html

YUs problem is two fold,

1. Lack of PR since I have held from 50p days the PR has been terrible. They should be shouting from the roof tops how great they are, Bk has a lot of skin in the game which I like and now share options are tied to SP which is great. I expect this to rapidly change over the next 12 months as YU move into massive profit and cash generation stage as the turnover has passed the key level and this is why your swing the margins improve so much.
2. History, the 2018 issues caused a lot of issues and 2 large shareholders got burned. One has come back with a 6% holding but YU need to get more IIs holding or HNWIs on board for the ride. Again I think this is why Liberium have been appointed.

YU upgraded the market because its results will be materially ahead of market estimates.

Liberum have upgraded EPS for 2022 + 2023 by 20% + 26%
Net Cash is now increased from ?7.5m to ?11.5m

Target price now increased to 612p

LIBERUM: Yü Group* - More upgrades and stand-out cheap – even in this market

Excellent and not unexpected update. Business, profit, turnover etc all significantly ahead. We are now in Q4 so 2022 is going to be block buster for YU and our SP is close to an 18months low. Bizzare.

Hi bodruncie

YU back to back hedge so when a new contract is placed they hedge it so therefore constantly re hedging.

If the supplier under used they sell it back or use it against a new contract I suppose which ever is the best route at the time to maximise profit.

With everyone thinking hard on energy use companies may now use less so I see big hedging profits going forward. One to think about and not in any forecasts.

So many stocks coming out with profit warnings yet SP rises, ASOS a prime example and the SP goes up.

We came out with Stella numbers and down 25% from the intra day high. Investing is madness the last few years just full of gamblers who do not want to be patient

How can we back to where the week started. We definitely have a seller around unloading into any strength. Well in my opinion they are going to look pretty daft in the next few years when the Sp is way over 1000p

The way I understand is that company x is hedged y but the gov will cap at P the difference between P and x will be funded by the gov.

As you say significantly reduces probability of bad debt

You could very well be right we have come up a long way from 165p to sell and a profit is a profit. Very short sighted if that is the case as I am here for the big long term gains, 1000p + because fundamentals wise we are not that far away.

Turnover wise we could be knocking on £500m within 2 years and if you look at the broker forecast cash flow and profit go ballistic from next year and we are already way ahead of the curve on forecasts.

Agree madness when news about to break enduring gov backed cash flows for around 2 years during explosive turnover and profit growth, no debt and massively increasing cash pool

Insightful or dumb ?

Game changing for the sector with gov backed cash flows, a huge de risker for energy suppliers going forward.

Devil is always in the detail but regardless a massive positive especially as turnover will still rocket

Looking ready for a big rise and we know how YU can react under buying and selling pressure. Been constant buying for a couple of weeks now. If as I expect the gov back pool for business goes ahead this should explode especially as the business is doing so well.

Turnover will be huge this year and with bad debt worries dissipating nothing to hold YU back

Agreed, numbers coming out of YU are incredible and soon we can dive into the detail.

If the gov backed pots gets put in place all concerns over bad debt disappear and this should re rate massively

VAT cut for business, 100b gov backed energy pot as price caps frozen and business supported from that as well ?

Nice we can get back to £3 again now as yet again I expect soaring turnover and big profits, not long to dig into H1 numbers, turnover, margins, profits, cash etc etc etc.

Also outlook as already am half way into H2

Wave of gov announcements on energy support. My bet is business fund utility providers will draw on and pay back over x years.

Domestic will be more targeted.

There will be some big announcements next week and I expect a business fund to be established and paid back over 10 to 20 years.

Domestic will be more targeted