Our opinion on the current state of DNBDeneb (DNB) is a 67,8% subsidiary of Hosken Consolidated Investments (HCI), listed on the JSE under specialty financial services. Deneb is an investment holding company with four divisions - (1) a property portfolio in Natal, the Western Cape and Gauteng worth about R1bn, (2) a branded products division which supplies toys, electronics and stationery, (3) a manufacturing division which produces products for the mining, agriculture, construction and automotive industries, and (4) a textile division which makes cotton, worsted and polyester fabrics. In its results for the six months to 30th September 2023 the company reported revenue up 9% and headline earnings per share (HEPS) down 36%. The company's net asset value (NAV) increased by 3% to 406c per share. The company said, "The revenue growth reflects market share growth on the back of various capital investments. The branded product businesses on the other hand, recorded turnover declines of 7,1% reflecting the pressure on local consumers and shipping delays which negatively affected turnover in September, traditionally a busy month". The problem with this share is that it is extremely tightly held and therefore not practical for private investors.
