Grindrod (GND) is an international freight and financial services company operating in twenty-eight countries. In mid-June 2018, Grindrod unbundled and separately listed its loss-making shipping division, Grinship (GSH). This accounts for the "cliff" in the share price at that time. The company is now focused on its two remaining divisions: freight and financial services.
Grindrod owns the North-South railway line from Beitbridge to Victoria Falls as well as port terminals at Richards Bay, Natal, Walvis Bay, Namibia, and Maputo. The company is positive about the growth of its financial services division, which constitutes about 30% of its business. It is particularly focused on getting its retail banking division involved with small and medium-sized businesses. However, the conflict in northern Mozambique poses a problem for this share, and the flooding in Natal caused five of their sites to be suspended for several weeks.
In its results for the year to 31st December 2023, the company reported headline earnings per share (HEPS) up 18%, net asset value (NAV) up 13% at 1368c per share, and revenue down 23%. The company stated, "The Group segment results benefited from the interest earned on the proceeds from the disposal of Grindrod Bank in 2022. Current year results include R45.3 million (2022: R167.1 million) from initiatives."
In a pre-close update for the 5 months to 31st May 2024, the company reported an average price drop in the commodities it deals with of 19%. The company noted, "Port of Maputo achieved record volumes of 5.8 million tonnes, up 17% on the prior period. Grindrod's dry bulk terminals in Mozambique handled 4.6 million tonnes, down 6% on the prior period."
Technically, the share has completed a rising triple-bottom and has risen off this base into a new upward trend. We recommended waiting for an upward break through its long-term downward trendline before buying. That break came on 15th July 2020 at a price of 340c. The share has since moved up strongly to 1504c, a gain of 342% in just under four years.
The company should benefit directly from the recovery in the world economy and the steady rise in international trade. We believe that this share still represents value.
Grindrod owns the North-South railway line from Beitbridge to Victoria Falls as well as port terminals at Richards Bay, Natal, Walvis Bay, Namibia, and Maputo. The company is positive about the growth of its financial services division, which constitutes about 30% of its business. It is particularly focused on getting its retail banking division involved with small and medium-sized businesses. However, the conflict in northern Mozambique poses a problem for this share, and the flooding in Natal caused five of their sites to be suspended for several weeks.
In its results for the year to 31st December 2023, the company reported headline earnings per share (HEPS) up 18%, net asset value (NAV) up 13% at 1368c per share, and revenue down 23%. The company stated, "The Group segment results benefited from the interest earned on the proceeds from the disposal of Grindrod Bank in 2022. Current year results include R45.3 million (2022: R167.1 million) from initiatives."
In a pre-close update for the 5 months to 31st May 2024, the company reported an average price drop in the commodities it deals with of 19%. The company noted, "Port of Maputo achieved record volumes of 5.8 million tonnes, up 17% on the prior period. Grindrod's dry bulk terminals in Mozambique handled 4.6 million tonnes, down 6% on the prior period."
Technically, the share has completed a rising triple-bottom and has risen off this base into a new upward trend. We recommended waiting for an upward break through its long-term downward trendline before buying. That break came on 15th July 2020 at a price of 340c. The share has since moved up strongly to 1504c, a gain of 342% in just under four years.
The company should benefit directly from the recovery in the world economy and the steady rise in international trade. We believe that this share still represents value.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.