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This is just too good... I bought!

Feb. 29, 2024
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It's been a while since I've been this impressed by a JSE listed company. I bought more!

I am beyond impressed with this JSE small cap performing so well on a global stage.

I have been following Santova since it was R1 a share, it is now R7.10 a share.

I nibbled here and there, but after their latest results, its now my 2nd largest JSE holding.

Heres why:

Share Price = R7.10

Market Cap = R966 million

Results

  • Net Profit +144% to R170.1 million
  • HEPS +169.4% to 126.82 Cents per share
  • Net Asset Value +27.3% to R5.59 per share
  • Debt to Equity improved 6.3%
  • Capital & Reserves increased 23.7% to R765.8 million
  • Operating Margins improved by 36.9%
  • Revenue +40% to R619.1 million
     

This is beyond incredible!!!
 

Looking at the (Net Profit After Tax) in their different regions:

Africa +445.5% to R35.6 million

Europe +221.5% to R73.1 million

UK +69.8% to R38.2 million

Asia Pacific +49.8% to R29 million

(Asia Pacific consisting of Hong Kong, Singapore & Australia)

So Europe forms the largest % of their revenue. Some massive growth experience in Africa & Europe.

Other Highlights:

  • Cash & cash equivalents increased from R80.8 million to R270.8 million. (Healthy!)
  • No dividends declared, because they are rather focused on buying back stock. (I like)
  • Financial Liabilities decreased by R18.2 million to R2.1 million. 
     

Overview:

Santovas services include:

Supply chain solutions

Logistic services

Courier services

Information technology

Client Sourcing & Procurement Management

 

These are services that will remain in demand, especially Supply Chain services as supply chains globally are chaos.

Where there is a problem, there is an opportunity.

Global trade will always be in demand.
 

Conclusion

I expect the demand for their services to continue. So, I bought more shares and plan on buying even more. I hope it drops once excitement fades, but either way, I will be holding it for the long term.

Santova is also part of the FinMeUp JSE portfolio, view the FinMeUp Portfolio Reveal for more on that.

We will look to interview their CEO, Glen Gerber in the near future. Stay tuned.

 

 

(Disclaimer: I am invested so I am bias. This is not financial advice, so do not buy just because I bought. Always do your own research & due diligence.)

 

 

 

 

 

 


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