Listed Securities Watchlist

IMPERIAL LOGISTCS LTD

Business Profile

Imperial Logistics Limited provides integrated market access and logistics solutions in Africa, Europe, and Internationally. It offers outsourced integrated freight management services, such as road, air, and ocean freight management services; contract logistics services, including warehousing, distribution, and synchronization management; and sourcing, warehousing, distribution, synchronization, and transportation management services. The company also operates as the lead logistics provider. It serves primarily healthcare, consumer, automotive, chemicals, and industrial markets. The company was formerly known as Imperial Holdings Limited and changed its name to Imperial Logistics Limited in December 2018. The company is headquartered in Bedfordview, South Africa.

Technical

  • Currently trading at R62,30 (63.56% YTD).
  • 39% premium bid by DP world shows that there is still value to be found within locally listed shares.

Fundamental

  • Market capitalization: R11.7Bn
  • Acquisition of Africa-focused transport firm J&J has the potential to increase the company’s current fleet by nearly 30% in the short-term. There is still a lot of long-term potential to be unlocked in the transport sector, especially in Africa.

Summary

The R4.4bn acquisition of the African-focused logistics company, J&J, increases Imperial’s presence in Africa and it is forecasted to deliver significant growth potential given the key trade routes they will be covering in the new market space. This will be the start of Imperial’s gateway to Africa as the company plans to expand into further trade routes in the future.

 

 

AECI LIMITED

Business Profile

AECI Ltd. engages in the manufacture and distribution of chemical raw materials and related services. It operates through the following segments: Mining Solutions, Water and Process, Plant and Animal Health, Food and Beverage, Chemicals, and Property and Corporate. The Mining Solutions segment offers commercial explosives, initiating systems, and blasting services right through the value chain to chemicals for ore beneficiation and tailings treatment solutions. The Water and Process segment provides integrated water treatment and process chemicals, and equipment solutions, for a diverse range of applications in Africa. The Plant and Animal Health segment manufactures and supplies a range of crop protection products, plant nutrients and services for the agricultural sector. The Food and Beverage segment supplies ingredients and commodities to the dairy, beverage, wine, meat, bakery, health and nutrition industries. The Chemicals segment distributes specialty chemical raw materials and related services for use across a broad spectrum of customers in the manufacturing and general industrial sectors. The Property and Corporate segment handles property leasing and management in the office, industrial and retail sectors and corporate functions including the treasury. The company was founded on March 21, 1924 and is headquartered in Sandton, South Africa.

Technical

  • Currently trading at a 40% discount to all time market cap high.
  • Currently trading at R106.85 (15.09% YTD)

Fundamental

  • Market capitalization: R10Bn
  • Given the radical increase in the company’s operational abilities after their successful restructuring, the share is well positioned for long-term growth.

Summary

Given how over-leveraged the company’s operations was within the manufacturing and construction sectors, over the past decade, the company’s forced restructuring in response to the COVID-19 pandemic steered the company’s focus more to sectors that have long-term growth potential and room for technological innovation such as their water operations segment.

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Disclaimer

This report does not guarantee the suitability or potential value of any information or particular investment source. The information provided is not intended to, nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified financial adviser. Nothing contained in this publication constitutes a solicitation, recommendation, endorsement or offer by Caveat Capital Management, but is merely an invitation to do business.

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Caveat Capital MGMT (Pty) Ltd is a CATII – Authorized Financial Services Provider (FSP no. 24777) registered at the South African Financial Services Conduct Authority (FSCA).