KAP Industrial Holdings Limited. JSE: KAP

KAP Industrials shares

Background of KAP

  • KAP Industrial Holdings is a diversified industrial group with a leading presence in southern Africa, focusing on the contractual logistics, timber, chemicals, automotive components, transport and integrated bedding industries.

  • The company’s history stems back to the purchase of manufacturing group Kolosus in 2003, and the renamed KAP was listed on the Johannesburg Stock Exchange (JSE) in 2004. Today, KAP has a JSE market cap in excess of R15 billion andemploys more than 18 400 employees. Despite challenging trade conditions, the live online stocks chart shows a solid growth in KAP Industrial share price.

  • KAP comprises the industrial assets of Steinhoff Africa, in addition to a number of other acquisitions made since 2004. The group is split into two main segments, namely Diversified Logistics and Diversified Industrial. The logistics segment contributes around 48% of revenue, with the industrial segment contributing 52%. Approximately 88% of revenue is generated in South Africa, with 12% coming from countries in the rest of Africa. Contractual logistics is the largest source of group revenue, contributing 36% of total revenue in the 2016 financial year.

KAP Shares Growth Driver

  • Despite challenging conditions within the industrial sector, KAP Industrial share price rose steadily in 2015, from R5 at the beginning of the year to R6.90 by year end. Financial data for the financial year ended June 2016 was impressive, with operating profit rising 19% to R2 billion, headline earnings per share rising by 18% to 47.8 cents and dividends increasing by 20% to 18 cents per share.

  • The group’s growth has been attributed to a successful restructuring process, which involved non-core assets being put up for sale and moves to buy complementary businesses such as Restonic and Autovest.

  • The Diversified Logistics segment enjoyed operating profit growth of 14%. This was largely due to the consolidation and rationalisation of Unitrans Supply Chain Solutions, which allowed for optimisation of operating efficiencies and provided a platform for reallocation of capital. Growth was particularly good in the food, petrochemical and infrastructure sectors, thanks to a strong focus on cost containment and fleet utilisation. Operating profit in the Diversified Industrial segment grew by 24%, driven by strong performances by the timber, chemical and automotive components divisions. In addition to reinforcing the existing strength of its businesses, KAP is looking to buy strongly into the rest of Africa.

KAP Investor Tip

  • Over the past few years, KAP Industrial shares have been of the best to buy in a challenging industrial sector. Building on the back of its stellar results, the group has secured a healthy volume of new contracts which should provide good momentum in KAP Industrial share price going forward.

  • This will be supported by anticipated revenue growth from new acquisitions such as Autovest and various expansion projects earmarked for the near future. Improved efficiencies and reduced costs have also been successfully implemented, which should further encourage investors to buy KAP Industrial shares. Despite the forecast of a muted industrial sector, KAP has proven to be a strong performer in difficult times, and KAP share price may enjoy a significant rise as trade conditions improve.

KAP Major Shareholders

Steinhoff Africa Holdings, Allan Gray, Investec Asset Management, Government Employees Pension Fund.

  • Sector

    Industrials

  • Industry

    Transportation & Logistics

  • Sub industry

    Logistics Services

How to buy KAP Group Shares

  • KAP : How to buy KAP Group Shares Online

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

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