{"id":442,"date":"2023-03-27T01:01:00","date_gmt":"2023-03-27T01:01:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=442"},"modified":"2023-03-26T07:35:31","modified_gmt":"2023-03-26T07:35:31","slug":"sabvest-capital-fy-22-results-exciting-prospects","status":"publish","type":"post","link":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/?p=442","title":{"rendered":"Sabvest Capital \u2013 FY 22 Results \u2013 Exciting Prospects"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Share Code: SBP \u2013 Market Cap: R3.2bn \u2013 Dividend Yield: 1.1%<\/em><\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-e88bae19-1d81-4038-880a-9d126b7afedd\" href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/Sabvest-Capital_Results-Note_FY-22-1.pdf\">Sabvest Capital &#8211; FY 22 Results Note<\/a><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/Sabvest-Capital_Results-Note_FY-22-1.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-e88bae19-1d81-4038-880a-9d126b7afedd\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FY 22 Results: Better than Expected<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sabvest Capital&#8217;s NAV grew 17.6% y\/y to 11017cps beating our expectations, the Group\u2019s HEPS was firm at 1591.2cps (FY 21: 1689.7cps) and management has materially lifted the dividend to 90cps (FY 21: 75cps).This was a busy period with a range of new investments from ARB Holdings, Halewood to Valemount Trading.<\/li>\n\n\n\n<li>The Group\u2019s investee companies executed various underlying investments from Apex buying into DRA Global to SA Bias\u2019 Flowmax acquiring YG Prefab in the UK.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Thoughts: Exciting Portfolio Prospects<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>While ITL\u2019s may be the only duller spot in Sabvest\u2019s portfolio (longer-term, though, we are very optimistic about this group\u2019s prospects), DNI-4PL is firing all cylinders, SA Bias is performing strongly, and Apex Partners is fast growing into a material investment for the Group.<\/li>\n\n\n\n<li>ARB Holdings is benefitting from the boom in solar, Halewood and Valemount Trading both hold immense potential for profitable expansion from their positions in the RTD\/beverage and pet industries respectively.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Valuation, 12m TP &amp; Implied Return: Cheap &amp; Growing<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Updating the Group\u2019s NAV for the latest market prices we arrive at a defendable (post-discount) fair value for Sabvest\u2019s shares of 9227cps (previously: 8894cps), which still includes a HoldCo c.14.5% <em>discount<\/em> against this NAV.<\/li>\n\n\n\n<li>Importantly, the underlying NAV appears to be conservatively valued and management\u2019s track record for growth is well above average. These two factors combine favourably to form the Group\u2019s investment appeal, particularly when offered at a discount (we estimate the share price currently offers a c.25% discount to NAV).<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/2023-March-27-HoldCo-Growth.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/2023-March-27-HoldCo-Growth-1024x512.png\" alt=\"\" class=\"wp-image-445\" srcset=\"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/2023-March-27-HoldCo-Growth-1024x512.png 1024w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/2023-March-27-HoldCo-Growth-300x150.png 300w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/2023-March-27-HoldCo-Growth-768x384.png 768w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/2023-March-27-HoldCo-Growth-624x312.png 624w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/2023-March-27-HoldCo-Growth.png 1418w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rolling our post-discount fair value forward, we see the Group\u2019s 12m TP as 10906cps (previously: 10511cps) with an implied return of +35%, excluding dividends.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-e88bae19-1d81-4038-880a-9d126b7afedd\" href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/Sabvest-Capital_Results-Note_FY-22-1.pdf\">Sabvest Capital &#8211; FY 22 Results Note<\/a><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2023\/03\/Sabvest-Capital_Results-Note_FY-22-1.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-e88bae19-1d81-4038-880a-9d126b7afedd\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: SBP \u2013 Market Cap: R3.2bn \u2013 Dividend Yield: 1.1% FY 22 Results: Better than Expected Thoughts: Exciting Portfolio Prospects Valuation, 12m TP &amp; Implied Return: Cheap &amp; Growing<\/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-442","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:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=442"}],"version-history":[{"count":1,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/442\/revisions"}],"predecessor-version":[{"id":446,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/442\/revisions\/446"}],"wp:attachment":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}