{"id":392,"date":"2022-08-22T01:01:00","date_gmt":"2022-08-22T01:01:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=392"},"modified":"2022-08-19T09:45:19","modified_gmt":"2022-08-19T09:45:19","slug":"sabvest-capital-h122-results-better-than-expected","status":"publish","type":"post","link":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=392","title":{"rendered":"Sabvest Capital &#8211; H1:22 Results &#8211; Better than Expected"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Share Code: SBP \u2013 Market Cap: R2.9bn \u2013 Dividend Yield: 1.0%<\/em><\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-b7155de1-d696-413f-9851-0b4b36b7c81f\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2022\/08\/Sabvest-Capital_Results-Note_H1_22.pdf\">Sabvest Capital_- Results Note &#8211; H1:22<\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2022\/08\/Sabvest-Capital_Results-Note_H1_22.pdf\" class=\"wp-block-file__button\" download aria-describedby=\"wp-block-file--media-b7155de1-d696-413f-9851-0b4b36b7c81f\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>H1:22 Results: Better than expected<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sabvest&#8217;s Net Asset Value (NAV) grew +10.9% p\/p and +26.1% y\/y to 10388cps (FY 21: 9371cps) driven by strong performances almost across all its investments that beat our full-year estimates.<\/li><li>The Group concluded investments in ARB Holdings and Halewood International South Africa during the period.<\/li><li>Despite this investment activity, the Group received good dividend flows, remains relatively lowly geared and management has declared a +50% y\/y growth in dividend to 30cps (H1:21 \u2013 20cps).<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Thoughts: H1:22 growth likely to continue in H2:22E<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>ARB Holdings and Halewood are currently being carried at cost. While we expect operational growth in ARB to carry this investment value upwards, Halewood\u2019s investment price appears quite conservative, and we expect <em>both<\/em> operational and re-rating to lift this valuation going forward.<\/li><li>Likewise, DNI-4PL, Masimong &amp; Apex are all growing quickly, ITL Holdings\u2019 global group has recovered strongly and SA Bias\u2019 Flowmax appears to be on the front foot for acquisitions.<\/li><li>Finally, coupled with Sabvest\u2019s superb capital allocation, relatively lowly-geared centre and its ability to buy-back its own shares below NAV, and it is likely that the good growth rate in H1:22 carries comfortably into H2:22E (and beyond).<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Valuation, 12m TP &amp; Implied Return: Lots of value available<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Updating the Group\u2019s NAV for the latest market prices &amp; taking out our present valued \u201cHoldCo discount\u201d, we arrive at a defendable (post-discount) fair value for Sabvest Capital shares of 8894cps (previously: 7487cps) or +22% <em>higher<\/em> than the current share price.<\/li><li>Rolling this fair value forward at our Cost of Equity, we see the Group\u2019s 12m TP as 10511cps (previously: 8825cps) with an implied return of +44%.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Refer to our <a href=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=273\">Initiation of Coverage<\/a> for more background.<\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-b7155de1-d696-413f-9851-0b4b36b7c81f\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2022\/08\/Sabvest-Capital_Results-Note_H1_22.pdf\">Sabvest Capital_- Results Note &#8211; H1:22<\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2022\/08\/Sabvest-Capital_Results-Note_H1_22.pdf\" class=\"wp-block-file__button\" download aria-describedby=\"wp-block-file--media-b7155de1-d696-413f-9851-0b4b36b7c81f\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: SBP \u2013 Market Cap: R2.9bn \u2013 Dividend Yield: 1.0% H1:22 Results: Better than expected Sabvest&#8217;s Net Asset Value (NAV) grew +10.9% p\/p and +26.1% y\/y to 10388cps (FY 21: 9371cps) driven by strong performances almost across all its investments that beat our full-year estimates. The Group concluded investments in ARB Holdings and Halewood [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[13,15,60,118,140,20,30,16],"class_list":["post-392","post","type-post","status-publish","format-standard","hentry","category-sabvest_capital","tag-equity-research","tag-jse","tag-research","tag-sabvest","tag-sabvest-capital","tag-small-cap","tag-small-caps","tag-south-africa"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=392"}],"version-history":[{"count":1,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/392\/revisions"}],"predecessor-version":[{"id":394,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/392\/revisions\/394"}],"wp:attachment":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}