Aug. 7 at 9:43 PM
$UXIN [Again] The Company is not a near term investment, but an intermediate/longer-term with multiplier upside, as I have consistently stated. Near term-the Company is in initial growth phase with a strained liquidity position and they have not yet reached profitability or positive FCF. That said-the Company is scaling its business meaningfully and consistently. UXIN works on a 2:1 framework (2 mature IRC will generate sufficient operating cash for each 1 new IRC launched). Once that occurs, the Company will be able to fund ongoing growth organically. They are targeting 50 IRC by 2030 selling 1 million vehicles annually. At that scale/footprint (provided consistent operating framework, macroeconomy), UXIN should be valued 50-100X current valuation (IMO) at/around
$0.2B. Self-funded growth to start in 2027, which is why the CEO is DCA
$10MILS of his own money over the next 12mos. CVNA almost went insolvent in 2022 - they are now a
$78BILS Company with annual sales of 500-600k.
