CAC 2000 Continues to Show Signs of Recovery in H1
- CAC 2000 Limited (CAC) reported a 58.6% improvement in net profit to $13.80Mn for its six months ended April 30, 2022.
- As most companies started their return to regular working days, along with the cessation of lockdowns, there was increased demand for CAC’s services, which resulted in a 5.3% increase in revenue. This along with a 0.6% decline in direct costs influenced a 13.9% increase in gross profit and 3.3 percentage points rise in the gross margin.
- While operating expenses increased by 11.5%, the operating profit margin increased from 3.4% in 2021 to 4.8% in 2022 as revenue growth outpaced the rise in expenses.
- Although supply chain issues will continue to present a challenge for the company through delays and price increases, it is anticipated that it will continue to benefit from the reopening with the resumption of many of its projects and service sites, and the resulting ability to book invoices for services etc.
- CAC’s stock price has increased by 7.6% since the start of the calendar year. The stock closed Wednesday’s trading session at $7.75 and currently trades at a P/E of 22.1x which is below the Junior Market Distribution Sector Average of 23.2x.
(Sources: JSE and NCBCM Research)