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Hudaco Industries Limited. JSE: HDC

Hudaco shares

Background of Hudaco

  • Based in South Africa, Hudaco Industries is a group which specialises in the importation and distribution of branded automotive, electrical and industrial consumable products. The company’s history can be traced back to 1891, when J Hubert Davies started an industrial equipment supply business in response to the rise of mining during the Witwatersrand gold rush. In the 1980s, Hudaco Industries was established as a separate autonomous entity carrying the group’s distribution businesses. Hudaco shares have been available to buy on the Johannesburg Stock Exchange (JSE) since 1985.

  • Today, Hudaco’s divisions include power tools, security equipment, communication equipment, automotive, batteries, bearings, diesel engines and spares and power transmission. The company sources products from more than 750 international suppliers around the world, and carries more than 225 000 line items for sale. Products are supplied to markets with a bias towards consumer spending, as well as mining and manufacturing customers. Hudaco has a JSE market cap of R3.5 billion.

Hudaco Shares Growth Driver

  • Hudaco strives to offer customers a value-added product which includes technical advice and training, representing established brands in African markets which these brands would not normally have been able to access.

  • The company’s first priority is taking advantage of organic growth opportunities. After funding this growth and paying dividends, funds are then available to explore the purchase of new businesses to strengthen the portfolio. Hudaco’s acquisition strategy is to close one major acquisition of at least R300 million turnover every two years, continue to buy smaller bolt-on businesses, conclude an acquisition of at least R1 billion and avoid dependency on any one market.

  • Hudaco’s businesses serving the mining and manufacturing sectors have stagnatedor declined in size under prevailing economic conditions, with the live online JSE chart showing a decline in Hudaco share price. 2015 heralded a sharp swing away from dependence on mining and manufacturing. The acquisition and integration of the Partquip group saw the consumer-related products segment becoming the biggest contributor to the group’s profit for the first time, at 59%. Considering the extremely tough economic environment, the group’s latest financial data is satisfactory. For the six months ended May 2016, group sales totalled R2.5 billion and profits stood at R154 million. This was a slight decline from the previous year, but a good performance under the circumstances.

Hudaco Investor Tip

  • Trade conditions for Hudaco are likely to remain constrained for the foreseeable future, making Hudaco shares a risky buy. The company has however made a successful shift away from mining and manufacturing, giving it some shelter from these volatile industries. Whilst Hudaco is still heavily exposed to these markets, the consumer-related businesses are performing well, and emphasis will be placed on growing this segment. The company does however have positive financial characteristics such as a high margin, strong cash flows and a limited requirement for investment in fixed assets, allowing it to continue delivering acceptable results. This should ensure a stable Hudaco share price. However, investors who buy Hudaco shares shouldn’t expect much upside growth any time soon, as the economic forecast remains muted.

Hudaco Major Shareholders

Public Investment Corporation, Old Mutual, Nedgroup Investments, Dunford Holdings.

  • Sector

    Industrials

  • Industry

    Machinery

  • Sub industry

    Engine & Transmission

How to buy Hudaco Shares

  • Hudaco : How to buy Hudaco Shares Online

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

  • Here are the steps you must follow to Buy / Purchase Hudaco 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 Hudaco.
    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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<a href="https://www.sashares.co.za/hudaco-shares">Credits: SA Shares™</a>
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