Homechoice International PLC. JSE: HIL

Homechoice shares

Background of HomeChoice

  • HomeChoice International is an investment holding company incorporated in Malta, with interests in innovative homeware merchandise, personal technology and loan products targeted at the mass middle income southern African market. HomeChoice International shares are available to buy on the Johannesburg Stock Exchange (JSE), where they have a market cap of R3.2 billion.

  • The company’s history started in Cape Town in 1985, and HomeChoice has today developed into an omni-channel home shopping retailer, with products for sale through online channels, sales agent networks, call centres and mail order catalogues. It is the largest home-shopping retailer in southern Africa.

  • The group operates through two main operating subsidiaries: HomeChoice (retail) and FinChoice (financial services). HomeChoice has an extensive product portfolio including bedding, curtains, bathroom ware, baby and kids products, electronics, furniture, luggage, kitchen accessories and clothing. FinChoice is a niche provider of unsecured personal loan products to HomeChoice customers with good credit records.

  • The group also has a property division in Cape Town which includes the head office building and a 200 000m3 distribution centre.

  • The company has more than 2.5 million customers, 80% of which are South African women with an average income of R7500 per month.

HomeChoice Shares Growth Driver

  • HomeChoice drives growth through an innovative, expanding shopping business model focused on a rapidly growing middle-income mass market. Despite an economic environment which has proved challenging for many retailers, HomeChoice has had a strong performance, registering greatly improved financial data for 2015. Operating profit increased by 11.3% to R580.4 million, while retail sales grew by more than 10% to R1.2 billion. Gross profit margin to 50,7%, despite rand deterioration, which was attributed to good buying disciplines and supply chain efficiencies driven by a move to the new distribution centre.

  • HomeChoice’s strategy has been driven by key target areas such as customer growth through analytics, organic growth through innovation and digital engagement and sales. Changes to regulations in South Africa’s credit industry caused reprioritisation of resources to ensure that both the retail and financial services divisions are in a position to implement new processes and systems. This slowed down HomeChoice’s plans to expand into the rest of Africa, but this move is still a key focus area for the group. A weakened state of credit health amongst South African consumers slightly dampened performance and has resulted in a stagnant HomeChoice share price.

HomeChoice Group Investor Tip

  • Whilst the ability of consumers to buy goods on credit is showing some early signs of improvement, the group’s target market remains financially constrained. This will have an impact on demand for HomeChoice’s products going forward. HomeChoice has however managed to maintain healthy profits and is in good financial standing, which should maintain investor confidence to buy HomeChoice shares. Digital sales are a particular high point for the company, and are expected to contribute more and more to the group’s growth. The live stocks chart shows a stable HomeChoice share price, proving that HomeChoice shares are a sound, if not exceptionally high-yielding purchase.

HomeChoice Major Shareholders

GFM, ADP II Holdings 3.

  • Sector

    Consumer Discretionary

  • Industry

    Retail – Discretionary

  • Sub industry

    Catalog & TV Based Retailers

How to buy HomeChoice Group Shares

  • HomeChoice : How to buy HomeChoice Group Shares Online

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

  • Here are the steps you must follow to Buy / Purchase HomeChoice 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 HomeChoice 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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