Simpar (SIMH3) is a holding company that controls six other companies — notably JSL (JSLG3), Movida (MOVI3) and Vamos (VAMO3) — and its shares are down 0.27% in the year and up 51% since its IPO (IPO) in September 2020.
The company will disclose its results for the first quarter of 2022 next Thursday (5), after the market closes, around 17:00 (Brasilia time). However, two of its main subsidiaries, Movida and Vamos, have already released their balance sheets for the period.
Check below what to expect from Simpar’s balance sheet and whether it is worth investing in the company’s shares.
Movida (MOVI3) showed strong growth from January to March this year, reporting gross revenue above R$2 billion — that is, an increase of 138.5% compared to the first quarter of 2021. There was also a profit of R$ 258 million, which represents an increase of 135% in relation to the previous year.
Ebitda, which measures the operating result, was R$ 863 million – a growth of 183% compared to the same period in 2021.
The company attributed to its good performance its ability to pass costs and increase tariffs, the continuous renewal and expansion of fleets and the growth in the GTF (Fleet Management and Outsourcing) segment, which has better margins and more predictable results.
Despite the lack of cars at automakers, caused by the drop in global supply in semiconductors, the company managed to increase the number of cars purchased.
Vamos (VAMO3) also reported good results, with revenue of BRL 945.2 million — an increase of 81.6% compared to the first quarter of 2021. Net income was a record, of BRL 121.9 million — growth of 66, 4% compared to the same period of the previous year.
In turn, Ebitda was R$ 361 million, which means an increase of 77.2% compared to the accumulated from January to March 2021.
Vamos reported that the more challenging macroeconomic situation makes companies change their mindset from having their own fleet of trucks to having outsourced management.
The company also commented that it is working with inventory of trucks and machines to overcome the lack of trucks at automakers.
Is it worth investing in Simpar (SIMH3)?
Despite the problems with the lack of cars and trucks, which affects the whole world, Simpar’s subsidiaries (SIMH3) managed to deliver excellent results, with strong growth.
We understand that the companies’ operational execution competence, in addition to their ability to pass on prices and reduce costs and expenses, will allow them to continue executing their expansion plans and, consequently, continue reporting solid results.
We continue with a buy recommendation for SIMH3, with a target price for shares at R$ 16.40, according to the median of Bloomberg projections for the next 12 months, with a potential of 47.75%, considering the price of R $11.10.