INSIMBI IND HLDGS LTD Trade Ideas — JSE:ISB

Our opinion on the current state of INSIMBI(ISB)Insimbi (ISB) is a group that manufactures and supplies specialist products to the industrial sector. The company is involved in sourcing, buying, packaging, and processing ferrous and non-ferrous alloys, refractory and foundry materials, as well as plastic blow-moulding and injection moulding. Insimbi also recycles metal alloys and provides technical support to users of its products. In its results for the six months ending 31st August 2024, the company reported an 11% decrease in revenue and a headline loss of 1.22c per share, compared to a profit of 15.46c in the previous period. The company cited challenging operating conditions, partly due to volatile prices for key commodities such as copper, aluminium, nickel, and steel. Technically, the share was in an upward trend until June 2018 but fell to a low of 50c on 18th December 2020. It subsequently rose to a high of 139c in June 2023 before entering a new downward trend. Insimbi could benefit from a recovery in the South African economy, but it remains a risky commodity share. The stock is thinly traded, with an average of about R36,000 worth of shares changing hands daily, making it illiquid and potentially dangerous for private investors. As a result, Insimbi remains a high-risk penny stock, especially given its exposure to volatile commodity prices.

Our opinion on the current state of INSIMBI(ISB)Insimbi (ISB) is a group that manufactures and supplies specialist products to the industrial sector. They source, buy, package, and process ferrous and non-ferrous alloys, refractory and foundry materials, plastic blow-moulding, and injection moulding. They recycle metal alloys and provide technical support to users of their products. In its results for the year to 29th February 2024, the company reported revenue down 2% and headline earnings per share (HEPS) down 54%. The company said, "Prices for most of our commodities declined during the year. The impact on Insimbi's export and local revenue was partially mitigated by the US$ base pricing of these commodities and an exchange rate that worked in our favour." In a trading statement for the six months to 31st August 2024, the company estimated that it would make a headline loss of between 1.1c and 1.3c compared with a profit of 15.46c in the previous period. Technically, the share was in an upward trend until June 2018 but then fell to a low of 50c on 18th December 2020. After that, it rose to a high of 139c in June 2023 before beginning a new downward trend. In our view, this company will benefit directly from any recovery of the South African economy, but it remains a risky commodity share. Its value traded is an average of about R34,000 per day, making it dangerous for private investors. So it is a thinly traded penny stock producing commodities, which is about as risky as you can get.

Our opinion on the current state of INSIMBI(ISB)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.

Our opinion on the current state of INSIMBI(ISB)Insimbi (ISB) is a group that manufactures and supplies specialist products to the industrial sector. They source, buy, package, and process ferrous and non-ferrous alloys, refractory and foundry materials, plastic blow-moulding, and injection moulding. They recycle metal alloys and provide technical support to users of their products. In its results for the year to 29th February 2024, the company reported revenue down 2% and headline earnings per share (HEPS) down 54%. The company said, "Prices for most of our commodities declined during the year. The impact on Insimbi's export and local revenue was partially mitigated by the US$ base pricing of these commodities and an exchange rate that worked in our favour." Technically, the share was in an upward trend until June 2018, but then fell to a low of 50c on 18-12-20. After that, it rose to a high of 139c in June 2023 before beginning a new downward trend. In our view, this company will benefit directly from any recovery of the South African economy, but it remains a risky commodity share. Its value traded is an average of about R60 000 per day, making it marginal for even a small investment by private investors.

Our opinion on the current state of INSIMBI(ISB)Insimbi Group is engaged in the manufacturing and supply of specialist products within the industrial sector. Their operations encompass sourcing, buying, packaging, processing, and recycling of ferrous and non-ferrous alloys, refractory and foundry materials, as well as plastic blow-moulding and injection moulding. The group also offers technical support to users of their products, which adds a service dimension to their primary manufacturing and supply operations. In their financial update for the six months ending 31st August 2023, Insimbi reported a revenue decline of 4% and a decrease in headline earnings per share (HEPS) by 6%. The company attributed these results to challenging operating conditions, though it noted that price fluctuations in key commodities like copper, aluminium, nickel, and steel had somewhat balanced out. Despite these challenges, revenue was largely maintained at over R3 billion, a slight decline compared to the same interim period in 2022, with operating profit falling by 9%. Looking ahead, Insimbi issued a trading statement for the year ending 29th February 2024, forecasting a substantial reduction in HEPS, anticipated to be between 50% and 60% lower than the previous period. This significant expected drop in earnings highlights ongoing operational challenges and possibly continued volatility in commodity prices which directly impact their business model. From a technical analysis perspective, Insimbi’s share price has seen considerable fluctuations over the years. The stock was on an upward trend until June 2018, but it then fell to a low of 50c by December 2020. The share price saw a recovery, climbing to a high of 139c in June 2023, before entering another downward trend. These movements suggest a volatile stock, heavily influenced by external market conditions and internal operational factors. Given the company's exposure to the fluctuating prices of commodities, Insimbi’s performance is intrinsically linked to the broader economic conditions, particularly within South Africa. A recovery in the South African economy could potentially benefit Insimbi, yet the stock remains a high-risk investment due to its susceptibility to market cycles and commodity price changes. Additionally, with an average daily trading volume of around R29,000, the share is considered marginal for investment by private investors due to liquidity concerns, which could make entry and exit positions more challenging to manage. In conclusion, while Insimbi may stand to gain from an economic upturn, potential investors should carefully consider the risks associated with its commodity-dependent business model and relatively low liquidity in the market.

Our opinion on the current state of ISB Insimbi, a diversified group, engages in manufacturing and supplying specialized products to the industrial sector. The company's operations encompass the sourcing, purchasing, packaging, and processing of ferrous and non-ferrous alloys, refractory and foundry materials, as well as plastic blow-moulding and injection moulding. Moreover, Insimbi is involved in recycling metal alloys and offers technical support to its product users. For the six-month period ending on 31st August 2023, Insimbi reported a 4% decrease in revenue and a 6% decline in headline earnings per share (HEPS). The company acknowledged the challenging operating conditions during the first half of the fiscal year, noting that while price fluctuations in key commodities such as copper, aluminium, nickel, and steel largely offset each other, revenue slightly exceeded R3 billion, marking a 4% decrease compared to the interim period in 2022, and operating profit fell by 9%. Looking ahead to the year ending on 29th February 2024, Insimbi anticipates that HEPS will be at least 20% lower than the corresponding period's figures. The share price trajectory of Insimbi showcased an upward trend until June 2018, after which it experienced a significant drop to 50c on 18th December 2020. The share price subsequently recovered, reaching a peak of 139c in June 2023, before entering another downward trend. Insimbi's performance and prospects are closely tied to the health of the South African economy, positioning the company to potentially benefit from any economic recovery. However, it remains a high-risk investment, primarily due to its exposure to volatile commodity markets. The company's daily traded value averages around R25,000, suggesting limited liquidity and making it a less attractive option for private investors seeking more than marginal investments.

Our opinion on the current state of ISB Insimbi (ISB) is a group which manufactures and supplies specialist products to the industrial sector. They source, buy, package and process ferrous and non-ferrous alloys, refractory and foundry materials, plastic blow-moulding and injection moulding. They recycle metal alloys and they provide technical support to users of their products. In its results for the six months to 31st August 2023 the company reported revenue down 4% and headline earnings per share (HEPS) down 6%. The company said, "Operating conditions in the first half of our new financial year remained challenging, although price fluctuations in our key commodities (copper, aluminium, nickel and steel) largely balanced each other out. Largely maintained revenue at over R3 billion (-4% vs interim period in 2022) although operating profit declined 9%". Technically, the share was in an upward trend until June 2018, but then fell to a low of 50c on 18-12-20. Since then it has risen to 115c. In our view, this company will benefit directly from any recovery of the South African economy but it remains a risky commodity share. Its value traded is an average of about R47 000 per day, making it just practical for a small investment by private investors.

INSIMBI IND HLDGS LTD

ISB trade ideas