High Tide Inc. (NASDAQ:HITI) released its 2022 financial results in January for the year ended October 31, 2022.
Here's a breakdown:
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Revenue increased by 97% year-over-year to CA$356.9 million ($265.4 million).
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Gross profit rose by 58% year-over-year to CA$101.0 million.
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Adjusted EBITDA hit a record of CA$14.6 million, up 17% versus the prior year.
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High Tide has entered into a non-binding letter of intent with the Berlin-based health and life science company, Sanity Group. The LOI is designed to leverage synergies between both complementary companies and position each to take advantage of potential German adult use legalization within their respective supply chain verticals.
The company completed its acquisition of 100% of the equity interest of 1171882 B.C. Ltd., operating as Jimmy's Cannabis Shop BC, in December.
The Analyst
Cantor Fitzgerald's Pablo Zuanic maintained a 'Neutral' rating on High Tide's stock, reducing the price target from CA$2.75 ($2.03) to $2.7.
The Thesis
Zuanic, who is a speaker at the April Cannabis Capital Conference in Miami, lowered the price target to address sectoral derating and industry challenges.
"High Tide continues to consolidate the Canadian retail industry, and management is pointing to >50% sales growth this calendar year on the back of 4-5% seq same-store sales growth, and by adding another 40-50 stores to its network," he said.
"Gross margins have rebounded since the launch of the discount strategy, and they could improve further given competitor attrition and also due to company initiatives. At 0.3x our FY23 (Oct) sales estimates and 6.3x EBITDA, the stock is seemingly attractively valued."
He pointed out that negative sentiment on the Canadian cannabis market tends to have an effect on the broader sector, with little differentiation between retail vs. LPs, or between operators, and that cannabis stocks tend to move in tandem with expectations about US federal-level reform.
"Investors must decide in which markets and parts of the value chain they want to invest," he said. High Tide could fit the bill of 'profitable sustainable moat' if it becomes the clear leader in Canada's cannabis retail space and shows EBITDA expansion."
Price Action
High Tide shares were trading 1.46% lower at $1.35 per share at the time of writing Monday mid-morning.
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High Tide公司(纳斯达克:希腊语)于2022年1月发布了截至2022年10月31日的年度财务业绩。
这是一份细目:
收入同比增长97%,达到3.569亿加元(2.654亿美元)。
毛利润同比增长58%,达到1.01亿加元。。
调整后的EBITDA达到创纪录的1,460万加元,同比增长17%。
High Tide与总部位于柏林的健康和生命科学公司Sanity Group签署了一份不具约束力的意向书。意向书旨在利用两家互补公司之间的协同效应,并定位每一家公司,以利用各自供应链垂直领域内潜在的德国成人使用合法化。
去年12月,该公司完成了对1171882 B.C.Ltd.股权的100%收购,该公司以吉米大麻商店BC的名义运营。
《分析师》
康托·菲茨杰拉德的巴勃罗·祖阿尼克对新浪High Tide的评级维持为中性,将其目标价从2.75加元(合2.03美元)下调至2.7美元。
这篇论文是
祖阿尼克是4月份在迈阿密举行的大麻资本会议上的演讲者,他下调了目标价格,以应对部门降级和行业挑战。
他说:“High Tide继续整合加拿大零售业,管理层预计,在同店销售额增长4-5%的基础上,今年同店销售额将增长50%以上,并在其网络中再增加40-50家门店。”
自推出折扣战略以来,毛利率已经反弹,考虑到竞争对手的流失以及公司的举措,毛利率可能会进一步提高。以我们23财年(10月)销售额预期的0.3倍和EBITDA的6.3倍计算,该股的估值似乎很有吸引力。
他指出,对加拿大大麻市场的负面情绪往往会对更广泛的行业产生影响,零售与有限合伙人之间或运营商之间几乎没有区别,大麻库存往往与对美国联邦层面改革的预期同步变动。
“投资者必须决定他们想要投资于哪些市场和价值链的哪些部分,”他说。如果High Tide成为加拿大大麻零售领域的领先者,并显示出息税前利润的扩张,它可能符合‘有利可图的可持续护城河’的要求。“
价格行动
截至周一上午10点左右,新浪High Tide股价下跌1.46%,至每股1.35美元。
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世界上最成功的大麻商业活动,本辛加大麻之都大会,回到迈阿密举行第16届。这是达成交易、筹集资金、开始并购、公司会见投资者和关键合作伙伴的地方。4月11日至12日,欢迎入住佛罗里达州枫丹白露迈阿密海滩酒店。不要错过。现在请确保您的机票安全。物价很快就会上涨。
蒂姆·福斯特在Unspash上的照片