Combined Motor Holdings Limited. JSE: CMH

CMH shares

Background of CMH

  • Combined Motor Holdings (CMH) Limited is an investment holding company operating in South Africa, involved primarily in distribution and franchising, motor retailers, car hire and support services, financial services, and the marine and leisure sectors.

  • The company’s history started in 1976 as a Chevrolet and Datsun franchise motor dealership in KwaZulu-Natal. Combined Motor Holdings shares were subsequently on the Johannesburg Stock Exchange (JSE) in 1987.

  • The company underwent considerable diversification and managed to buy a number of businesses, and today, business units include First Car Rental, Carshop, CMH Finance, CMH Insurance, CMH Fleet Solutions, CMH Green, Bonerts, NWE Workshop Equipment and CMH Marine and Leisure. The group currently has retail motor dealerships and car rental dealerships throughout South Africa.

CMH Shares Growth Driver

  • Despite a difficult economic climate, the group enjoyed strong performance in the 2016 financial year, notching up a record profit of R183 million. National new vehicle sales in South Africa dropped by 5.2% for the year, but CMH managed to record a 27% increase in headline earnings per share.

  • Following the economic recession of 2009, the group has focused on the need to manage costs and cash flow in a shrinking market. This has propelled CMH to a 32.6% return on shareholders’ funds and a 30.8% increase in dividends paid out, as well as a stronger CMH share price. The group’s management style revolves around decentralised operating and marketing control, along with centralised cash flow processes.

  • Internet and electronic marketing have been an important priority for the group, and have proved critical in generating sales leads and concluding sales. Overall, this drive brought an increase in customer willingness to buy cars.

  • New vehicle sales remained flat for the year, but the group’s used car sales increased by 12.3%. Five sub-performing dealerships were put up for sale recently, but 10 new dealerships built by the group in 2015 have started generating good profits. Meanwhile, First Car Rental has been a star performer recently, recording a 16.8% rise in operating profits for the 2016 financial year. The company has also entered into a new venture in the longer-term truck and van hire markets.

  • CMH Financial Services also delivered good data with a steady 4.8% increase in profits, with warranty cells (providing life, disability, retrenchment and vehicle warranty cover) delivering a 43.5% increase. The Marine and Leisure division was closed down recently after delivering subpar returns.

CMH Group Investor Tip

  • The live online stocks chart shows that CMH share price has remained consistently strong throughout the group’s history. Despite difficult trade conditions, CMH share price has climbed sharply in 2016, and shareholders have enjoyed healthy dividends. The company has managed to effectively control costs and turn a profit through tough times, which bodes well for investors who purchase CMH shares. Economic recovery should lead to a rise in new vehicle sales and result in an even stronger performance from CMH and increased interest to buy CMH shares. The stocks have proved to be a reliable buy and should offer good prospects for long-term growth.

CMH Major Shareholders

Old Mutual Group, Midbrook Lane, Sanlam Investment Management, Electus Fund Managers.

  • Sector

    Consumer Discretionary

  • Industry

    Retail – Discretionary

  • Sub industry

    Automotive Retailers

How to buy CMH Group Shares

  • CMH : How to buy CMH Group Shares Online

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

  • Here are the steps you must follow to Buy / Purchase CMH Group 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 CMH Group.
    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)
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