Hulamin Limited. JSE: HLM

Hulamin shares

Background of Hulamin

  • Hulamin Limited is a mid-stream aluminium semifabricator and a fabricator of aluminium products, with operations based in South Africa and sales offices in Europe and the USA.

  • The company’s history dates back to 1935, when Aluminium Limited of Canada first made products for sale in South Africa. The company’s specialty is aluminium rolling, which was started after demand for semi-fabricated aluminium began increasing in 1949, prompting the establishment of a rolling mill on Hulamin’s current site in Pietermaritzburg. Hulamin in its current form was established following the unbundling of Hulett Aluminium from Tongaat Hulett in 2006. Hulamin shares were subsequently listed on the Johannesburg Stock Exchange (JSE).

  • Today, Hulamin is the only major aluminium rolling operation in sub-Saharan Africa. The company’s four businesses comprise Hulamin Rolled Products, Hulamin Extrusions, Hulamin Containers and Hulamin Recycling. Hulamin employs almost 2000 people and has a JSE market cap of R1.74 billion.

Hulamin Shares Growth Driver

  • Hulamin’s largest activity continues to be aluminium rolling, which generates more than 80% of revenue. Although the South African market is an important and growing element of Hulamin’s business, a significant portion of rolled products is exported to regions such as Europe, North America, Middle East and Asia. This partly shielded Hulamin from the impacts of challenging conditions in the aluminium trade, which suffered from an oversupplied market resulting in low selling prices and reluctance from customers to buy Hulamin’s products. Improved manufacturing performance, together with gains from the weaker rand, cost reduction and operational efficiency improvements allowed Hulamin to produce a good set of results for the first six months of 2016, with Hulamin share price remaining stable.

  • Group sales tonnage was up by 19%, revenue increased by 25% to R4.9 billion and operating profit increased by 86%. Net profit stood at R152 million, compared to R75 million for the corresponding period in 2015. The struggling local economy resulted in reduced appetite to buy aluminium products. Although local sales demand is forecast to improve in the near term, additional export sales should further mitigate the local market risk. In contrast to many other locally based aluminium producers, Hulamin share price has been relatively steady over the past few years.

Hulamin Investor Tip

  • Hulamin has said that it expects the momentum from improved manufacturing to continue in the near term, although weak market conditions are expected to persist both locally and internationally.

  • The company expects sales mix and operating margins to increase, whilst order books for rolled products are full. The company’s customers are looking for more volumes than what the group can supply, indicating a booming business in a difficult market. On the back of steady financial performance, shareholders have enjoyed healthy earnings per share and dividends. Although the live online stocks chart shows that Hulamin share price has been fairly stagnant of late, it is admirable that it has not plunged in the face of challenging trade conditions. Hulamin share price is expected to remain fairly stable, with a good possibility of healthy growth when market conditions improve. This makes them one of the most reliable stocks in the sector to buy at present.

Hulamin Major Shareholders

Industrial Development Corporation, Truffle Asset Management, Coronation Fund Managers, Government Employees Pension Fund, Investec Fund Managers.

  • Sector

    Industrials

  • Industry

    Manufactured Goods

  • Sub industry

    Fabricated Metal & Hardware

How to buy Hulamin Shares

  • Hulamin : How to buy Hulamin Shares Online

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

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