Our opinion on the current state of HCI(HCI)Hosken Consolidated Investments (HCI) is a BEE investment holding company owned by the South African Clothing and Textile Workers' Union. It has investments in gaming, hotels, media, transport, mining, and property. It owns 47% of a suite of gaming companies, including JSE-listed Tsogo Sun, which owns casinos and hotels, Galaxy Bingo, and Vukani Gaming (which operates gaming machines). They also own the JSE-listed E-Media group, which includes ENCA, Openview HD, and E-Sat TV.
In transport, they own 74% of Hosken Passenger and Logistics, which owns Golden Arrow Bus Services. They own 52% of Niveus Investments and 84% of Deneb. They have 100% of HCI Coal, which is a junior coal-mining operation with two operational mines. HCI Properties has a portfolio of conference and exhibition properties like the Gallagher Convention Centre. Finally, it owns 40% of a technology company called BSG.
On 26th April 2022, the company announced that a prospecting company that it has an effective 10% share of an investment in a company which has made a significant light oil discovery. This has caused the share to shoot up initially.
In its results for the year to 31st March 2024, the company reported revenue up 6% and headline earnings per share (HEPS) down 29%. The company's net asset value (NAV) increased 5% to 23504c per share. In our view, this is a diverse and somewhat unfocused group trading on a P:E of 9. We suggested that this share was cheap at R80 in February 2022, and it has since risen to R171.62 and may climb further.
