Astral Foods is an integrated poultry producer in South Africa and around the world. Alwyn van der Merwe, director of investments at Sanlam Private Wealth, said that while cheap chicken imports hurt Astral’s business previously, their earnings began to come back up in 2014. With lower feed costs, the company’s earnings are likely continue to grow. Astral reported a 13-percent increase in revenue for 2014, an 88-percent increase in operating profit, and a 98-percent increase in total dividend to shareholders.
Source: Astralfoods.co.za
Super Group describes itself as a broad-based supply chain management business that manages all aspects of supply chains from sourcing and transport to warehousing and distribution. Van der Merwe says the company has managed to increase earnings and offer competitive prices in its market, and he doesn’t see those trends ending soon. Bloomberg.com shows a steady revenue increase for the company since June 2014.
Source: Bloomberg.com
FirstRand bank produced a 24-percent return on equity in 2013 and is a top 10 company on the Johannesburg Stock Exchange. One of FirstRand’s cofounders, Sizwe Nxasana, said the company is in the process of several initiatives aimed at increasing earnings. The bank intends to open a retail banking division in Nigeria and a mini FirstRand in Ghana.
Source: Financialmail.co.za
Arthur Clayton, a branch manager at Sanlam Private Wealth, says Adcorp, the staffing resolutions business, has an average five-year dividend yield of 5.3 percent and that its international aspirations should help it see plenty of growth in shareholder value. Staffinginudstry.com reported that Adcorp had more than a 12-percent increase in revenue since 2013.
Source: Staffingindustry.com
Clayton recommends investing in the diversified investment holding company that experienced a 7-percent increase in operating profit in 2014. The company has holdings in large stocks such as Jasco Electronic Holdings, and it has a subsidiary — AfroCentric Health — with holdings in groups such as Medscheme. Medscheme is one of the three largest healthcare administrators in South Africa.
Source: Bdlive.co.za
Howden Africa works mostly in the power sector, producing large-scale engineered products such as heat exchangers and industrial cooling. Clayton says the company has seen a five-year median return on equity of 53 percent and that it’s pursuing new opportunities in Africa to “improve diversification.” In the company’s report for the period ending June 2014, there was a 7-percent increase in earnings per share, a 9.2-percent increase in operating profit and a 73.9-percent increase in cash and cash equivalents.
Source: Moneyweb.co.za
Impala Platinum produces nearly 22 percent of the world’s supply of platinum. Several factors will contribute to Impala Platinum’s revenue growth in 2015, says Sizwe Mkhwanazi, portfolio manager at Sanlam Private Wealth. For starters, the company has as strong balance sheet and little debt, but it’s also going through a “cost rationalisation exercise” so it should be cutting expenses. On top of that, diesel cars in Europe are seeing a comeback, which will benefit the company. A poll of 26 investment analysts in December 2014 suggested investors should hold their position in the company.
Source: Markets.ft.com
Attacq is a capital growth fund in South Africa that operates in the real estate sector. Mkhwanazi says the company has grown its net asset value per share by 20 percent per year since 2005. International investments have also exposed the company to Europe and areas throughout Africa. Mkhwanazi believes the company’s NAVPS will continue to grow for at least another three years. On Dec. 9 2014, the company raised 640 million rand ($55.17 million USD) in an accelerated book build — a short-term offering of new equity shares.
Source: Cnbcafrica.com
Grindrod is a freight and project logistics service provider in South Africa. Mkhwanazi believes that the shipping division will normalize soon, which will increase the company’s revenue. Mkhwanazi also points out that the company has seen steady growth in the freight services division and the experts at Sanlam believe that as the company learns to better use its assets, revenue will continue to increase. Bloomberg.com confirmed the company plans to invest in Mozambique, Zimbabwe and Zambia.
Source: Bloomberg.com
Humphrey Price, a portfolio manager at Sanlam, says the construction and engineering company, Murray & Roberts, has made several moves that brought it up in value in 2014, including selling non-core assets and focusing more on higher-margin business. The company recently resumed its annual dividend after not paying in 2013, according to a Moneyweb interview with the company’s CEO.
Source: Moneyweb.co.za
Safari Investments develops and manages township shopping centers in South Africa and has a project in Namibia. The company has a pro-shareholder model that distributes 85-to-90 percent of its earnings to investors, so they don’t need to wait for capital gains. The company is currently trading at a discount that Price says will soon get smaller as the market values it higher. The company almost doubled its earnings in 2014, Business Day Live reports.
Source: Bdlive.co.za
ARB Holdings describes itself as an investment holding company for businesses involved in the trading and distribution of electrical, lighting and related products to the mining, industrial, construction, parastatal, retail and domestic markets across South and Southern Africa. Price says organic and acquisitive growth will help the company increase revenue, and hints that more markets will hold the company at a higher value eventually. ARB saw a 14-percent rise in full year revenue towards the end of 2014, according to its CEO in a CNBCAfrica interview.
Source: Cnbcafrica.com
