Our opinion on the current state of RMHRand Merchant Bank Holdings (RMH) has undergone significant transformations in its corporate structure and portfolio. Initially, RMH was established 41 years ago by GT Ferreira, Laurie Dippenaar, and Paul Harris. It was listed on the JSE in 1992 and later spun off Rand Merchant Investment Holdings in 2011. Over the years, RMH had a substantial stake of 34.1% in Firstrand. However, since 2016, the company has shifted its focus towards investments in the property sector.
RMH Property was formed through strategic acquisitions, including a 27.5% stake in Atterbury, 34.1% in Propertuity, and 40% in Genesis. With the sale of its 34% stake in FNB, RMH has transitioned into primarily a property company.
On April 9, 2021, RMH announced a special dividend of 80c per share due to its inability to execute the Bucharest development successfully. In its financial results for the six months ending on September 30, 2023, the company reported a 42% decrease in revenue and a headline loss of 1.4c per share, contrasting with a profit of 3.8c in the previous period. RMH has also returned R327 million to its shareholders through special dividends.
From a technical perspective, assessing the company has been challenging due to recent divestments. However, it has entered a robust upward trend. With a price-to-earnings (P:E) ratio of 9.13 and a positive trend, RMH is perceived as offering good value at its current trading levels.
