Wednesday, 03 October 2012 - 20:00
Charts
Cashbuild - Building Value Cashbuild, one of the leading building material retailers in South African, has recently released its annual results for the financial year ending 30 June 2012. Cashbuild employs more than 4,000 people in 191 stores across South Africa, Namibia, Lesotho, Botswana, Swaziland, and Malawi. The company was listed on the JSE in 1986 and has a current market capitalization of just below R 4bn.
Annual Results
The results were excellent compared to last year, but management highlighted the fact that the June 2011 results covered only 52 trading weeks and also included the effects of last year’s BEE transaction to incentivise management members.
Source: Cashbuild.co.za
Net Asset Value per share increased by 25%, revenue increased by 11%, and total dividends were up 92% year on year. Operating profit increased by 67% at first glance but, excluding the 53rd trading week and BEE transaction, came to a more comparable 26%. In the same way, headline earnings per share increased by 88% for the year, but come to 26% on a comparable basis.
Source: Cashbuild.co.za
Cashbuild has managed to increase its gross profit margin slightly by 0.8% to 23.3%, despite a competitive environment in which many of its competitors are struggling. Operational expenses were well controlled by management, increasing by 9% largely due to the people cost component for new stores. Stock levels were in line with management’s expectations with an overall stockholding of 63 days, compared to 72 days reported in 2011.
Competitive Advantage
Cashbuild aims to offer quality products at the most competitive prices, and use their substantial buying power to control prices from their suppliers. The company enjoys a very strong customer base in the rural areas, amongst previously disadvantaged home improvers, and small scale building contractors. Cashbuild has managed to position their stores optimally to meet the ever growing demand in the mining provinces, a significant competitive advantage that might extend even more as the resource sector picks up. Cashbuild stores carry a focused range of products and services, which is tailored to the specific needs of each community in which that store operates.
Expansion Prospects
The number of Cashbuild stores has remained at 191 since last year’s results, with thirteen stores being refurbished and three relocated. Four new stores were opened, and four stores that were in close proximity to other Cashbuild stores had to be closed down. The company will be continuing its store expansion, relocation and refurbishment strategy, with management hoping to open up to five new stores in the first six months of the new financial year.
Demand for building materials is expected to rise in the next twelve months, as housing delivery normally increases in the run-up to elections. With wage increases and social grants ever increasing, Cashbuild expects their target customer base to be able to spend more on refurbishment and expansion of their homes going forward.
Current Valuation
Cashbuild shares have performed exceptionally well over the past five years, with the share price increasing by 139% from R 66 to R 158. Over the last twelve months the share is up 53%, after a slight drop from its recent high of R 168.
Source: Sharenet
Cashbuild shares currently trade at a PE of 12.6 times and a dividend yield of 3.6%, which compares favourably with the JSE’s respective metrics of 13.9 and 3.0%, and are by no means expensive.
Given the recent run it is up to investors to decide if the growth in share price can be continued, and whether Cashbuild’s competitive advantages will be eroded or built up over time.
Kind regards,
Cor van Deventer
www.seedinvestments.co.za
info@seedinvestments.co.za
021 914 4966
Additional sources:
www.cashbuild.co.za, www.moneyweb.co.za
Wed, 03 Oct 2012
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Chin Full story
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World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 36120.45 | -126.00 | -0.35% | JSE Top 40 | 17:00 | 31868.43 | -151.00 | -0.47% | JSE Gold | 17:00 | 2345.52 | -31.00 | -1.32% | JSE Financial | 17:00 | 27326.11 | 65.00 | 0.24% | JSE Industrial | 17:00 | 42561.49 | 40.00 | 0.10% | JSE Indust 25 | 17:00 | 36427.54 | 41.00 | 0.11% | JSE Resource | 17:00 | 48194.49 | -715.00 | -1.46% | DJ Futures | 19:02 | 13450.00 | 14.00 | 0.10% | DJ Ind | 20:00 | 13490.83 | -24.28 | -0.18% | SP 500 | 20:00 | 1449.58 | 5.09 | 0.35% | Nasdaq | 20:00 | 3131.07 | 17.54 | 0.56% | FTSE 100 | 17:35 | 5825.81 | 16.36 | 0.28% | DAX | 18:08 | 7322.08 | -4.65 | -0.06% | CAC40 | 18:08 | 3406.02 | -8.21 | -0.24% | Nikkei | 08:30 | 8746.87 | -39.18 | -0.45% | Shanghai | 28/09 | 2086.17 | 29.85 | 1.45% | Hang-Seng | 10:32 | 20888.28 | 47.90 | 0.23% | All Ords | 08:43 | 4458.80 | 6.90 | 0.15% | NZSE 50 | 06:48 | 3889.60 | 18.35 | 0.47% |
| | Name | Time | RP | Move | % Move | Gold $ | 19:58 | 1776.70 | 3.62 | 0.20% | Gold R | 20:00 | 14944.71 | 127.31 | 0.86% | Gold R/kg | 20:00 | 480472 | 225 | 0.05% | Silver $ | 19:58 | 34.5500 | -.0140 | -0.04% | Platinum $ | 19:56 | 1680.40 | 4.90 | 0.29% | Palladium $ | 19:57 | 653.90 | 5.50 | 0.85% | R157 | 14/09 | 5.45 | -.03 | 0.00% | R204 | 14/09 | 6.18 | -.06 | 0.00% | Brent Crude | 19:48 | 108.39 | -3.41 | -3.05% | Rand / Dollar | 19:58 | 8.4115 | 0.0567 | 0.68% | Rand / Pound | 19:55 | 13.5059 | 0.0551 | 0.41% | Rand / Euro | 19:55 | 10.8669 | 0.0716 | 0.66% | Rand / NZD | 19:58 | 6.8913 | -0.0152 | -0.22% | Rand / AUD | 19:55 | 8.6025 | 0.0210 | 0.24% | Yen / Dollar | 19:58 | 78.5080 | 0.3500 | 0.45% | Euro / Dollar | 19:58 | 0.7751 | 0.0009 | 0.12% | Dollar / Euro | 19:58 | 1.2902 | -0.0013 | -0.10% | Pound / Dollar | 19:55 | 0.6217 | 0.0020 | 0.32% |
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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03/10/2012 | 189 | 183 | 73 | 445 | 180,621,503 | R10,418,906,509 | 112517 | 2015737 | 02/10/2012 | 218 | 164 | 68 | 450 | 191,235,052 | R11,231,261,838 | 103398 | 1557803 | 01/10/2012 | 204 | 141 | 70 | 415 | 148,795,129 | R7,995,389,906 | 99527 | 1780508 | 28/09/2012 | 221 | 127 | 63 | 411 | 249,060,437 | R12,645,321,326 | 97855 | 2014908 | 27/09/2012 | 186 | 181 | 76 | 443 | 239,165,618 | R12,936,194,889 | 125436 | 1743517 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 31,868.00 | -151.00 | -0.47% | Industrial | 42,561.00 | 40.00 | 0.10% | Mid Cap | 51,829.00 | 142.00 | 0.28% | Small Cap | 38,478.00 | 41.00 | 0.11% | Resource 20 | 48,194.00 | -715.00 | -1.46% | Industrial 25 | 36,427.00 | 41.00 | 0.11% | Financial 15 | 10,162.00 | 15.00 | 0.16% | Financial & Ind. 30 | 39,742.00 | 39.00 | 0.10% | All Share | 36,120.00 | -126.00 | -0.35% | Oil & Gas | 27,852.00 | -895.00 | -3.12% | Mining | 30,777.00 | -363.00 | -1.17% | Gold Mining | 2,345.00 | -31.00 | -1.32% | Platinum Mining | 47.00 | .00 | -0.13% | GENERAL MINING | 8,024.00 | -81.00 | -1.00% | Oil & Gas Producers | 14,975.00 | -481.00 | -3.11% | Basic Materials | 26,341.00 | -338.00 | -1.27% | Chemicals | 15,742.00 | -87.00 | -0.55% | Forestry & Paper | 15,327.00 | -107.00 | -0.70% | Industrial Metals | 25,302.00 | -1161.00 | -4.39% | Industrials | 34,750.00 | 113.00 | 0.33% | General Industrials | 99.00 | .00 | 0.81% | Consumer Goods | 36,921.00 | 203.00 | 0.55% | Automobiles & Parts | 6,804.00 | 13.00 | 0.20% | Household Goods | 174.00 | 0 | 0.29% | Health Care | 49,589.00 | 339.00 | 0.69% | Beverages | 127.00 | 1.00 | 1.25% |
| | Index Name | RP | Move | % Move | Food Producers | 65,732.00 | 175.00 | 0.27% | Personal Goods | 521.00 | -1.00 | -0.20% | Consumer Services | 78,147.00 | 808.00 | 1.05% | General Retailers | 64,008.00 | 957.00 | 1.52% | Travel & Leisure | 4,347.00 | -31.00 | -0.72% | Media | 116.00 | 1.00 | 1.37% | Support Services | 2,151.00 | 2.00 | 0.10% | Telecommunications | 74,264.00 | -1717.00 | -2.26% | Financials | 27,326.00 | 65.00 | 0.24% | Banks | 48,276.00 | -93.00 | -0.19% | Non-life Insurance | 46,450.00 | -509.00 | -1.09% | Life Insurance | 23,445.00 | 165.00 | 0.71% | General Financial | 2,518.00 | 6.00 | 0.25% | Technology | 33,367.00 | 53.00 | 0.16% | SHARIAH TOP40 | 3,097.00 | -41 | -1.32% | FTSE/JSE SHARIAH ALL | 3,214.00 | -38 | -1.19% | COAL MINING | 20,283.00 | -504 | -2.43% | FTSE JSE Fledgling | 5,588.00 | -16 | -0.29% | FTSE/JSE Alt X | 1,143.00 | 8 | 0.75% | SA LISTED PROPERTY | 486.00 | | 0.30% | CAPPED PROPERTY | 391.00 | | 0.26% | RESOURCE | 26,529.00 | -395 | -1.47% | DIVIDEND PLUS | 198.00 | 0 | -0.16% | FTSE/JSE RAFI 40 | 7,347.00 | -41 | -0.57% | Capped Top 40 | 16,806.00 | -85 | -0.51% | Capped All Share | 18,271.00 | -65 | -0.36% | JSE TABACO | 5,684.00 | 77 | 1.38% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | IPL | IMPERIAL HOLDINGS LTD | HOLD | 30/09/2012 | BIL | BHP BILLITON PLC | HOLD | 30/09/2012 | TRU | TRUWORTHS INTERNATIONAL L... | SELL | 30/09/2012 | AMS | ANGLO AMERICAN PLATINUM C... | HOLD | 30/09/2012 | ANG | ANGLOGOLD ASHANTI LIMITED | HOLD | 30/09/2012 |
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Results Expected** Expected | Company Name | Fin. Date | 04/10/2012 | SALLIES-C | December 2011 (Interim) | 05/10/2012 | DON | June 2012 (Final) | 05/10/2012 | INSIMBI | August 2012 (Interim) | 05/10/2012 | SACMH | June 2012 (Interim) | 08/10/2012 | PSG | August 2012 (Interim) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | TELEMASTR | 02/10/2012 | 02/11/2012 | 12/11/2012 | R 0.0100 | DCENTRIX | 02/10/2012 | 19/10/2012 | 29/10/2012 | R 0.1125 | FONEWORX | 28/09/2012 | 12/10/2012 | 22/10/2012 | R 0.0700 | AMAPS | 27/09/2012 | 30/11/2012 | 10/12/2012 | R 0.1000 | CAPITEC | 26/09/2012 | 12/10/2012 | 22/10/2012 | R 1.6900 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | ASTRAPAKP | 07/09/2012 | 28/09/2012 | 08/10/2012 | R 3.6545 | SASFIN-P | 10/09/2012 | 28/09/2012 | 08/10/2012 | R 3.5155 | MMI HLDGS | 11/09/2012 | 28/09/2012 | 08/10/2012 | R 0.6900 | MMI HLDGS | 11/09/2012 | 28/09/2012 | 08/10/2012 | R 0.6500 | SPURCORP | 06/09/2012 | 28/09/2012 | 08/10/2012 | R 0.4700 |
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Upcoming AGMs** Code | Company Name | Date | Status | ABK | African Brick Centre Ltd | 03/10/2012 | Unconfirmed | VMK | Verimark Holdings Ltd. | 04/10/2012 | Confirmed | RBX | Raubex Group Ltd. | 05/10/2012 | Confirmed | BFS | Blue Financial Services Ltd. | 10/10/2012 | Confirmed | BEGP | Beige Holdings Ltd. | 10/10/2012 | Confirmed |
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