Labat Africa Limited. JSE: LAB

Labat Africa shares

Background of Labat

  • Labat Africa is a black owned and managed investment holding company with a history stretching back to 1995. The group was listed as one of the first BEE companies on the Johannesburg Stock Exchange (JSE) in 1999.

  • The group’s investment portfolio has a main focus on transport and logistics, including rail, road and associated engineering and electrical components for sale. Labat aims to be an investment operating company, with a goal of becoming one of the leading transport and logistics groups in South Africa.

  • The company’s main operating subsidiary is integrated circuit manufacturer South African Micro-Electronic Systems (SAMES). Labat is currently in discussions with several large logistics companies in order to buy into joint venture agreements, whilst also developing its own in-house logistics capacity. Labat shares are available to buy on the Venture Capital Market of the JSE. The company has a JSE market cap of R72.5 million, and Labat share price has been highly unstable on the bourse.

Labat Shares Growth Driver

  • After voicing intentions to buy into the logistics sector, Labat announced a R560 million acquisition of the Reinhardt Transport Group and several smaller logistics companies in 2015. In 2016, the company then made a shock announcement that the deals had fallen through, causing Labat share price to plunge.

  • Currently, Labat’s only major investment lies in operating subsidiary SAMES. During the 2015 financial year, turnover within SAMES increased by 21%, and Labat recorded a R1.425 million comprehensive profit compared to a R12 million loss the previous year.

  • Financial data for the six months ended February 2016 showed further improvement with a profit of R7.3 million. This was largely due to a deferred tax asset of R8.4 million. SAMES has enjoyed some good improvements from a successful move to a production facility in China and upgrades to its product portfolio. Further improvements are being targeted through a five year development and capital investment programme which will increase revenue and profits. Labat believes that the prospects for SAMES are sound, with potential to grow performance through appropriate investment and marketing. In addition to talks with large logistics companies, Labat has said that it is pursuing several small logistics acquisitions, although these are at an early stage.

Labat Investor Tip

  • Investors were understandably furious at Labat’s announcement that the deal with Reinhardt had been cancelled. The deal was touted as a game changer andprompted many investors to buy Labat shares. The live online stocks chart shows that Labat share price rose sharply from below 15 cents at the beginning of 2015 to R1.50 by January 2016. After the deal fell through, the price plunged down to 28 cents by August 2016.

  • With these deals off the table, investors won’t have much confidence to buy Labat shares. It remains to be seen whether Labat can deliver on its promises of entering into meaningful ventures with large logistics companies. Only then will the company be considered a viable investment prospect for investors looking to buy the shares.

Labat Major Shareholders

Landers and Kent, GEM Global Yield Fund, Industrial Development Corporation.

  • Sector

    Consumer Discretionary

  • Industry

    Commercial Services

  • Sub industry

    Professional Services

How to buy Labat Group Shares

  • Labat : How to buy Labat Group Shares Online

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

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