SABVEST Limited. JSE: SBV

Background of Sabvest
Sabvest is a South African investment holding company with a portfolio comprising significant investments in various listed groups, along with major interests in two unlisted industrial groups and offshore share, bond and cash portfolios. Sabvest also makes finance advances, participates in debt instrument portfolios and carries out other fee and profit earning activities. The company aims to buy stakes in a diversified range of instruments.
The company’s history stems back to the formation of the SA Bias Group, which was originally listed on the Johannesburg Stock Exchange (JSE) in 1948. Sabvest shares are today listed under the Equity Investment Instruments sector of the JSE.
Total holdings are valued at R2 billion and the group has a JSE market cap of R1.36 billion.
Sabvest Shares Growth Driver
Sabvest aims to buy significant equity interests in listed and unlisted companies with sound growth performance or potential for growth, with investments confined to the industrial, retail, trading, services, media, IT and financial sectors. The group also targets investments in international currency through foreign operations of South African investee companies.
The group targets growth rates of 15% per annum in net asset value (NAV) per share and 10% per annum in dividends per share. Sabvest’s investments over the past few years have proved fruitful, with NAV per share rising from R6 in 2006 to R37 by the end of 2015. The group enjoyed strong performance in 2015, with NAV per share rising by 38.6% and dividends growing by 50%. Profit after tax increased by 125% to R460 million. These record results were achieved through gains on the sale of the Set Point Group, strong share price increases from Brait, Transaction Capital and unlisted investments, along with sound returns from offshore portfolios benefitting from the weak rand.
The group’s fortunes took a dive in the first six months of 2016, with the interim data showing a loss of R127 million and a R3.395 reduction in NAV per share. Brait’s share price deteriorated after the Brexit vote in the UK and the resulting weakness of the pound, whilst Torre was severely impacted by poor performance of its divisions in a depressed industrial sector in South Africa. Other investments were mainly steady.
The board has said that most listed investments will trade to expectations in future, but poor conditions within the mining and industrial sectors will continue to affect earnings.
Sabvest Group Investor Tip
The group has forecast that share prices of investee companies will continue to weaken in the short-term, which will materially impact Sabvest share price. After years of strong performance, Sabvest shares are still regarded as a good buy, and it is admirable that Sabvest share price has remained steady on the JSE live online stocks chart. Sabvest has proven that it has the ability to navigate through stormy waters, and Sabvest shares should return to their strong growth path in the medium-term, still making them an attractive buy for patient investors.
Sabvest Major Shareholders
Seabrooke Family Trust, BNP Paribas SA.
Sector
Financials
Industry
Specialty Finance
Sub industry
Other Financial Services
How to buy Sabvest Group Shares
Sabvest : How to buy Sabvest Group Shares Online
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