AECI Limited. JSE: AFE

AECI shares

Background of AECI

  • AECI (JSE: AFE) is a proudly South African specialty chemicals and explosives company listed on the Johannesburg Stock Exchange (JSE), that focuses on providing products and services to a broad spectrum of customers in the miningmanufacturing and agricultural trades. It has a strong history of being a profitable share on the stock market, yielding good dividends for shareholders.
  • Today, its portfolio’s business interests are local, regional and international with key operations in Africa, South East Asia and Australia. The group also has business interests in Latin America.
  • Being a specialty product and services group of companies, AECI claims to provide “value-adding solutions to customers through science, technology and industry knowledge”. The company is mostly interested in serving the mining and manufacturing sectors.
  • When the company’s Dulux decorative coatings business was brushed aside in 2007, the unprofitable segments of the SANS Fibres business were also closed. AECI has embarked on a massive construction of five projects related mainly to the mining sector. These will have a capital expenditure of about R1.1 billion in total over the next two years.
  • The DetNet joint venture is responsible for the designing, producing and selling of electronic detonators. The company has also established its presence in Brazil for specialty chemicals.

AECI Shares Growth Driver

  • The biggest growth driver recently for AECI has been recovering demand from the mining and manufacturing sectors. Demand from the manufacturing sector in particular was greatly reduced by the economic downturn,but its return has boosted demand for AECI’s speciality chemicals division, and boosted performance.
  • This has been attributed as the biggest contributor to AECI’s revenues. The AECI has also widened its reach by investing in a number of capital projects for the expansion of capacity in both its specialty chemicals and mining explosives divisions. AECI has still not seen volumes return to pre-2008 levels. After a strong upward surge, stock charts show a dip in the share price since 2015.
  • This has been viewed as a short-term challenge. The expansion of its capacity has shown foresight and is tipped to become a competitive advantage for subsidiaries such as AEL and Chemserve going forward.
  • AECI has frequently invested in research and development in order to improve its products. There are many examples to support this growth. One of these is the development of an improved electronic delay detonation system and a new homogeniser for emulsion explosives in collaboration with Lake Technologies.

AECI Investor Tip

  • AECI announced that the sale of excess property in Somerset West (near Cape Town) had lifted headline earnings per share by 45 percent in the six months to June 2015. At the opening of the JSE on 22 February 2016, AECI share prices were down 2.29% to R85.01, valuing the company at about R10.7bn.
  • The company’s headline earnings per share came in at 565 cents, up from 390 cents, with the property sale contributing 230 cents. The explosives and specialty chemicals group had its revenue for the period increasing by 8 percent. This increased from R7 987 million to R8 629 million, with 36 percent of this generated outside SA, reflecting progress in the group’s strategy to diversify geographically.
  • The weak rand exchange rate also played a role contributing to this increaseProfit from operations was R991 million, 22 percent higher than the R814 million achieved in the prior corresponding period. This indicates that the company is on an upward curve, with those who purchase AECI shares likely to be rewarded in the long-term.

AECI Major Shareholders

Coronation Fund Managers, Public Investment Corporation, Kagiso Asset Management, Sanlam Investment Management and Allan Gray (Pty) Ltd.
  • Sector

    Materials

  • Industry

    Chemicals

  • Sub industry

    Speciality Chemicals

How to buy AECI Shares

  • AECI : How to buy AECI Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy AECI shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in AECI and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase AECI shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in AECI.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
  • Buy Shares with Confidence

    Buying JSE shares has never been this convenient and easy. #myfirstshare

    View more JSE shares for sale – here.

Summary
Review Date
Reviewed Item
AECI shares
Author Rating
51star1star1star1star1star