Stealth Group Holdings Ltd

ASX:SGI

Stealth Group Holdings Ltd

ASX:SGI
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Reports (6) My Report Forum Investors
Forum Topics SGI SGI AGM notes

Pinned straw:
Strawman
Added 4 weeks ago

I had to leave early, but a few tidbits from the AGM:

  • Around half of HBT’s 490 suppliers already work with Stealth, which should help accelerate integration.
  • They’re aiming to lift the number of HBT stores using Stealth’s wholesale channel from about 50 today to roughly 200 over the next two years.
  • Key exclusive brands, such as CAT, can now be sold into a network of roughly 1,200 stores, up from just 32 previously.
  • Management expects the first half of FY26 to be relatively flat, with a materially stronger second half.
  • They drew a contrast with Bapcor’s issues, noting that Stealth’s model carries a far more variable cost base because independent operators carry much of the fixed load.
  • Stealth’s real edge, in their view, is the efficiency of its stock and inventory management. They’ve been building Stealth as a platform from the very beginning.
  • HBT is essentially a buying group with a technology layer; Stealth sees clear opportunity in plugging this into its broader platform.
  • Mike said he has never sold shares, except for $200k worth to meet tax obligations, and doesnt intend on selling any more. The Chairman mentioned he may sell a small parcel to pay off his kid’s mortgage, but emphasised it would be “only a few shares.”
Tom73
Added 4 weeks ago

AGM (14/11/25)

Hopefully a recording will be available, but just a couple of points beyond that struck me but most is already been included in notices and the presentation or @Strawman mentioned:

·        Mike was animate that HBT is just the beginning of the journey, this has been the plan from the outset to build a scalable model.

·        Suggested that the HBT addition was a reason for delaying some of the other role outs so they could do them across the whole 1200 stores rather than just 32. Clearly keen to sell the new exclusive product ranges into the HBT stores.

·        Talked to the high caliber leadership across the company and that they are in SGI because of their abilities to build and run a much larger business (10x), several ex-Wesfarmers people including Mike. The business model deliberately has a variable cost structure so it can scale up quickly. The focus is efficiency in stock management and generating through put.

·        Mike not selling shares (doing a DroneShield as they joked), only ever sold 200k for tax obligations and sees this as just the beginning. He recognises others in the company will have personal needs and he doesn’t begrudge any choice they would have to sell.

·        The Chair was frank saying he did intend to sell some, a small portion to help kids pay off mortgage

Mike and the Chair were for obvious reasons in a very good mood and confident. The undertone was that they had just reached the beginning of where Mike wanted the business to be and he wanted to completely disrupt the market.

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mikebrisy
Added 4 weeks ago

@Strawman @Tom73 did Mike explain why "Management expects the first half of FY26 to be relatively flat, with a materially stronger second half."

I was unable to attend, and my transcript services don't pick up $SGI, however I've noted that management have said a webcast reply will be available on www.slealthgi.com

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Strawman
Added 4 weeks ago

I actually missed that part @mikebrisy (got up for a moment to let the bloody dog out!), and will need to check the recording when it comes out. But I assume he was referring to delays in the previously flagged store rollouts, upgrades, and things like store-in-store and hire/rental etc sidelined a bit by the HBT situation.

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Tom73
Added 4 weeks ago

@mikebrisy from memory it was due in part from integration, with several initiatives delayed for included in the integration plus the integration it's self will provide a drag for the half with any initial benefits not kicking in until H2. I expect organic growth remains minimal for base line operations, it was the new ranges and hire that offered some growth and moving from a 32 store opportunity to 1200 store opportunity has changed the role out plans for these.

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Slideup
Added 4 weeks ago

I listened in and I was a bit surprised at how light on in details their plans are in terms of how they are intending to reach the new 2028 target. This was the agm so backwards looking but a lot of the pressentation was forward looking statements.

it was very much a we have assembled the best team possible, we are nimble and have built our systems to enable the future growth. It felt like to me a bit like we got you here trust us that we know what we are doing.

In fairness I do think the management team are the driving force behind the success at Stealth, but I wanted a bit more than trust us- 1H 26 will be flat, 2H will be strong and 2027 will be even stronger. I sold my personal holdings yesterday as I thought the reaction to the acquisition was a bit over the top. Happy to watch this one from the sidelines to see if they can generate some organic growth.

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