Insimbi (ISB) is a diversified industrial group specializing in the manufacturing and supply of specialist products to various sectors. The company’s offerings include ferrous and non-ferrous alloys, refractory and foundry materials, as well as plastic blow-moulding and injection moulding. Insimbi is also involved in the recycling of metal alloys and provides technical support to its clients.
In its financial results for the year ending 29th February 2024, Insimbi reported a 2% decrease in revenue and a significant 54% drop in headline earnings per share (HEPS). The company attributed this decline to falling commodity prices, which negatively impacted both its export and local revenue streams. However, the impact was somewhat mitigated by the favorable exchange rate and US dollar-based pricing for some of its commodities.
Looking ahead, Insimbi issued a trading statement for the six months ending 31st August 2024, estimating that HEPS would fall by at least 20%. This suggests that the company is continuing to face challenges, likely due to ongoing commodity price pressures and possibly other market factors.
Technically, the share had been in an upward trend until June 2018, after which it declined sharply to a low of 50c on 18th December 2020. It then recovered to a high of 139c in June 2023 before entering a new downward trend. While Insimbi stands to benefit from any recovery in the South African economy, it remains a risky investment, particularly given its reliance on commodity markets.
For private investors, Insimbi's average daily trade value of around R1,1m makes it a practical option, though the inherent risks associated with commodity price volatility and the broader economic environment should be carefully considered.
In its financial results for the year ending 29th February 2024, Insimbi reported a 2% decrease in revenue and a significant 54% drop in headline earnings per share (HEPS). The company attributed this decline to falling commodity prices, which negatively impacted both its export and local revenue streams. However, the impact was somewhat mitigated by the favorable exchange rate and US dollar-based pricing for some of its commodities.
Looking ahead, Insimbi issued a trading statement for the six months ending 31st August 2024, estimating that HEPS would fall by at least 20%. This suggests that the company is continuing to face challenges, likely due to ongoing commodity price pressures and possibly other market factors.
Technically, the share had been in an upward trend until June 2018, after which it declined sharply to a low of 50c on 18th December 2020. It then recovered to a high of 139c in June 2023 before entering a new downward trend. While Insimbi stands to benefit from any recovery in the South African economy, it remains a risky investment, particularly given its reliance on commodity markets.
For private investors, Insimbi's average daily trade value of around R1,1m makes it a practical option, though the inherent risks associated with commodity price volatility and the broader economic environment should be carefully considered.
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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.
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.