Our opinion on the current state of SABCAP(SBP)

Sabvest Capital (SBV) is an investment holding company that listed on the JSE in 1988. Previously, the company had both ordinary and "N" shares, which were very thinly traded. To rectify this situation, a new company was registered called Sabcap, and the shares of Sabvest were swapped out for Sabcap shares. This happened on 12th May 2020.

Sabcap has investments in five private companies, by far the largest of which is SA Bias, where its investment is 60% and worth R673m. SA Bias is predominantly involved in the textiles industry but also has an interest in a company involved in handling equipment and parts. The other private companies in which it has an interest are: Classic Food Brands (30%), Flexo Line Products (47,5%), Mandarin Holdings (30%), JAA Holdings (35,7%), and Sunspray Food Ingredients (28,2%).

Aside from this, Sabvest has a listed portfolio worth about R700,000 and offshore investments worth about R573,000. It also owns 11,7% of Metrofile, worth R82,3m, 300,000 shares in Net1 UEPS, and 31% of Rolfes.

In its results for the six months to 30th June 2024, the company reported net asset value (NAV) up 7,8% to 11,786c per share. Headline earnings per share (HEPS) increased by 63,2%. The company said, "The compounded annual growth rate in NAV per share over 15 years with dividends reinvested was 18,5%."

In a trading statement for the year to 31st December 2024, the company estimated that the company's NAV would increase by between 17% and 21%.

This share is very difficult to analyze because of its diverse and constantly changing portfolio. The restructuring of the business does appear to have increased the volumes traded a little, with an average of about R248,000 worth of shares changing hands each day, and the share does appear to be in an upward trend. Like most investment holding companies, it trades at a significant discount to its NAV.