Distributing And Warehousing Network Limited. JSE: DAW

Dawn shares

Background of DAWN

  • Distribution and Warehousing Network (DAWN) is a group which focuses on manufacturing and distributing a wide range of quality branded hardware, sanitary, plumbing, engineering, civil and kitchen products through a national branch network in South Africa, Angola, Botswana, Mozambique, Swaziland, Lesotho, Namibia, Mauritius, Nigeria, Zambia, Zimbabwe, the DRC and Tanzania. The company also exports products for sale to around 50 other countries in Asia, Australia, Europe, the Middle East, New Zealand and South America.

  • Overall, the group distributes a portfolio of 50 000 products sourced through 2 700 suppliers, to more than 13 000 building and infrastructure sector customers. Dawn’s two main operating segments (Building and Infrastructure) are supported by a Solutions segment which provides world-class support functions.

  • The Building segment operates mainly in the residential and recorded and unrecorded additions and alterations markets, whilst the infrastructure segment is predominantly focused on the civil industry, specifically water and sewer related infrastructure and allied market activity.

  • DAWN shares are available to buy on the Johannesburg Stock Exchange (JSE), but have not yielded good returns for shareholders who buy them of late.

DAWN Shares Growth Driver

  • DAWN drives growth through a business model which positions the company as a trading and distribution group with strategic investments in anchor brands. In order to sustain cost effectiveness and grow core distribution competency, the group endeavours to be the premium distributor of its branded products. DAWN’s businesses complement each other’s product ranges, creating cross-selling opportunities and sharing functions such as warehousing, distribution and administration, allowing for maximum efficiency. During its history, the company has established a large customer base in South Africa and has quickly expanded throughout the rest of sub-Saharan Africa.

  • The group’s performance has however suffered of late. Revenue for the 2015 financial year dipped from R4.4 billion to R3.6 billion, with profit before interest and tax standing at R41.9 million compared to R107 million the previous year. This was largely due to strike action, large transaction fees and power disruptions. A slowdown in government spending and payments has also negatively impacted all of DAWN’s divisions. Difficult trade conditions and currency losses contributed to the slump. DAWN shares were also heavily affected, and shareholders suffered a 151% loss in headline earnings per share, and no dividends.

DAWN Investor Tip

  • DAWN has warned shareholders to expect a muted DAWN share price going forward. The forecast is that financial performance will be dragged down by Growe Dawn Watertech, due to delayed working capital funding. Trade conditions in general are expected to remain tough as African economies try to recover from economic downturn. DAWN share price has slumped from R12.55 in 2014 to below R 4 by the middle of 2016. The live online stocks chart has shown a steady decline in DAWN share price and the shares are not anticipated to be a good buy in the medium term. They may be viewed as undervalued by some, but the purchase of DAWN shares will only appeal to risk-taking investors.

DAWN Major Shareholders

Ukhamba Holdings, Coronation Fund Managers, Investec, Boles Family Trust.

  • Sector

    Consumer Discretionary

  • Industry

    Home & Office Products

  • Sub industry


How to buy DAWN Group Shares

  • DAWN : How to buy DAWN Group Shares Online

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

  • Here are the steps you must follow to Buy / Purchase M-FiTEC 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 DAWN 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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