Our opinion on the current state of BRIKOR(BIK)

6 日前

Brikor (BIK) is a company that manufactures bricks, roof tiles, and clay pipes. It was listed on the Alt-X in August 2007 and describes itself as "...a diverse manufacturer and supplier of building and construction materials across a broad spectrum of the market from low-cost housing, residential to commercial, industrial, civil engineering and infrastructure projects and has a brick and coal segment through its subsidiary, Ilangabi Investments."

The company is trying to improve its BEE status. The share was suspended on the JSE from the end of July 2013 to 31st July 2020 at 9c per share. Since it resumed trading, it shot up to 199c before settling back to 15c.

In its results for the year to 29th February 2024, the company reported revenue up 12,4% and headline earnings per share (HEPS) of 1,3c compared with a loss of 0,1c in the previous period. The company's net asset value (NAV) increased 7,8% to 13,9c per share. The company said, "Revenue in the Bricks segment increased by 6,8% to R226,0 million (F2023: R211,6 million). The increase in revenue was a direct result of inflationary increases in selling prices of bricks with sales quantities being in line with the previous reporting period."

In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would fall by between 56% and 63%. The average value of shares changing hands each day has fallen to around R7 700, which makes it impractical for private investors.

The patchy revival of the construction sector since 2021 has been a positive factor. Selling bricks is a tough business in South Africa, and this company seems to have survived COVID-19, which speaks volumes for its management.