Mustek Limited. JSE: MST

Mustek shares

Background of Mustek

  • Mustek Limited’s history stems back to 1987, with the company built around the popular Mecer ICT brand. Listed on the Johannesburg Stock Exchange in 1997, the group today comprises the wholly owned operations of Mustek and Rectron, along with shareholdings in technology service providers Khauleza IT Solutions and Sizwe Africa IT Group.

  • After adding international brands to supplement and partner its growing end-to-end offering, the group has established the largest and most versatile ICT assembly line in South Africa. Operations include planning, bulk purchasing, consolidating shipments, assembly, warehousing and after sales service and support.

  • Mustek anticipates ICT trends and efficiently distributes imported components and finished products through planning, bulk purchasing, consolidating shipments, assembly, warehousing and after sales service and support for customers who buy Mustek products. Products are distributed through a wide sales network across South Africa, expanding into several other African countries.

  • Listed on the Johannesburg Stock Exchange (JSE), Mustek shares have a market cap of R489 million.

Mustek Shares Growth Driver

  • The group’s results and Mustek share price have been weighed down heavily by, in particular, a reduction in spending from the government sector. Profit stood at R84 million for the 2016 financial year, down from R138 million in 2015. Performance was negatively impacted by a sharp increase in net finance charges, as well as discontinued operations from Rectron Australia. Headline earnings per share were a full 38.5% lower, with shareholders receiving full year dividends of 15 cents compared to 35 cents.

  • The group was still able to make acquisitions during the year, managing to buy a 25.1% stake in fibre optic cable company Yangtze Optics Africa, which will be operational in Durban by 2017. The group also increased its effective shareholding in Sizwe Africa from 26% to 40%.

  • Going forward, the group plans to continue putting non-profitable assets up for sale and refining its broad-based ICT distributor status, where profits from its Microsoft Volume License and Huawei Enterprise Solutions offerings are forecast to grow. Sustainable energy, CCTV surveillance and cabling products will also receive attention, whilst the group is pushing Big Data and electronic tablet sales. In line with high government spending in education, Mustek has also been investing in education technology and e-learning, believing that it is well positioned to grow its market share in this sector.

Mustek Group Investor Tip

  • The live online stocks chart shows that Mustek share price plunged from a high of R9.35 in August 2015, to R4.99 in September 2016. The company does however have some promising initiatives which could restore confidence to buy the shares. The appointment as a Microsoft Volume License distributor allows the group to market and distribute cloud services, whilst expertise will allow Mustek to capitalise on opportunities in the rapidly evolving IT sector. Investment analysts believe that Mustek shares could be a good purchase in the medium to long-term.

Mustek Major Shareholders

The DK Trust, Peregrine Equities, Nedbank Growth Fund, Electus, Old Mutual.

  • Sector

    Consumer Discretionary

  • Industry

    Distributors – Discretionary

  • Sub industry

    Consumer Elec & Applc Whslrs

How to buy Mustek Group Shares

  • Mustek : How to buy Mustek Group Shares Online

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

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