African Oxygen Limited. JSE: AFX

Afrox shares

Background of Afrox

  • African Oxygen Limited (Afrox) was founded in 1927, and Afrox shares first put up for sale on the Johannesburg Stock Exchange (JSE) in 1963. The well-established, market-leading company focuses on full spectrum gases and welding products in Sub-Saharan Africa. It provides a diversified portfolio of solutions and services for sale to a number of trades, with operations including gas supply schemes, cylinder gases, liquefied petroleum gas, scientific gases, medical gases and products, refrigerants, packaged chemicals and most associated safety products and services.

  • Apart from South Africa, Afrox has operations in 10 other African countries, whilst managing operations in five other countries, on behalf of parent company The Linde Group. Gases and other products are manufactured at 41 sites across southern Africa, with more than 3000 people employed and a transport fleet covering 24 million kilometres per year through Afrox’s extensive network of distributors.

  • Following a long history of being a blue-chip share, Afrox share price dropped dramatically between 2005 and 2014, with headline earnings falling by 87%. Due to economic uncertainty and the International Monetary Fund downgrading its forecast for growth in sub-Saharan economies, Afrox had to buy into a transformation of its business operations. The company efficiently reduced selling, and general overheads, improved efficiency and created a more focused business model. Share price and earnings have since made a remarkable rebound, with pre-tax profit coming in at R500 million by December 2015.

Afrox Shares Growth Driver

  • The new appointments of managing director Schalk Venter and financial director Dorian Devers in May 2015 have led to significant positive changes in the company today.

  • AfroCentric has made a number of key acquisitions which have improved the group’s
    earnings and AfroCentric share price, resulting in greater visibility in heathcare
    markets. In 2015, it also decided to buy strategic alliance with Sanlam, one of South
    Africa’s foremost financial institutions, to expand marketing and distribution. In the
    interests of further diversification, there has also been an extensive focus on channelling investment into countries outside South Africa. The live online stocks chart shows that AfroCentric share price has recorded consistent growth for the past several years, with the company recording good financial data and solid returns for investors who buy the shares.

Afrox Investor Tip

  • Afrox share price and performance have made a remarkable comeback after the 87% loss the company registered between 2005 and 2014. By December 2015, headline earnings had increased by 285% from the previous year. After retrenchments, plant closures and consultancy costs, Afrox forecasts savings of R 277 million in 2016. Sales in the company’s biggest division – atmospheric gases –increased by 3% in 2015, with healthcare and food and beverage sales increasing by 16.5% and 10.5% respectively.

  • The purchase of Afrox shares currently has good investment merit, but full confidence to buy this former blue-chip share will likely only be fully restored if the company produces another good set of financial data in future.

Afrox Major Shareholders

BOC Holdings plc, Afrox African Investments, Aberdeen Global Fund and the Government Employees Pension Fund.

  • Sector

    Materials

  • Industry

    Chemicals

  • Sub industry

    Basic & Diversified Chemicals

How to buy Afrox Shares

  • Afrox : How to buy Afrox Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Afrox 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 Afrox and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Afrox 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 Afrox.
    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
Afrox shares
Author Rating
51star1star1star1star1star