Our opinion on the current state of ENXGROUP(ENX)The enX Group (ENX) is a diversified industrial group in South Africa, offering products and services in petrochemicals, fleet management, logistics, and industrial sectors. The group includes Austro, which distributes woodworking equipment and tools, and New Way Power, which manufactures, installs, and maintains diesel generators. Its fleet division provides fleet management, logistics, and vehicle tracking, while ENX Petrochemicals markets oil lubricants, plastics polymers, rubber, and specialty chemicals across Southern Africa.
Since 2019, enX has been strategically divesting non-core assets to focus on growth opportunities and reduce debt. Key disposals include Eqstra, its fleet management company, sold to Bidvest for R3.1 billion, and its British fork-lift and container business sold for GBP31 million. The proceeds from these sales have supported debt reduction and funded special dividends, such as the 200c per share dividend following the sale of the EIE group in April 2022 and a 150c dividend in August 2022.
In its results for the year to 31st August 2024, enX reported a 3% drop in revenue, with headline earnings per share (HEPS) from continuing operations down by 11%. While volumes in toll blending for lubricants and polyethylene in chemicals increased, lower base oil and chemical prices impacted average selling prices.
With an average daily trading volume of nearly R180,000, enX remains relatively practical for private investors. The company’s focus on essential industries, along with selective acquisitions and divestments, positions it to benefit from economic improvements in South Africa and overseas markets.
ENX trade ideas
Our opinion on the current state of ENXGROUP(ENX)The enX Group (ENX) is a diversified industrial company catering to the petrochemical, fleet management, logistics, and industrial sectors. It includes divisions such as Austro, which distributes wood-working equipment, and New Way Power, which provides diesel generators. Its fleet division focuses on fleet management, logistics, and vehicle tracking, while ENX Petrochemicals markets lubricants, polymers, rubber, and chemicals in Southern Africa.
The company has actively streamlined its operations, selling off several non-core assets, including Eqstra in 2019 and EIE Group in April 2022, which allowed for debt reduction and special dividends for shareholders. The company also completed the sale of Eqstra Investments in June 2024, resulting in another special dividend of R5.00 per share.
In its results for the six months ending 29th February 2024, enX reported revenue up by 5% and headline earnings per share (HEPS) up 110%. Growth was driven by increased volumes in polyethylene, specialty chemicals, and generator sales, especially to data centers, though lower base oil pricing impacted average selling prices.
In a trading statement for the year ending 31st August 2024, enX estimated HEPS growth between 77% and 87%, but a decline of 6% to 16% for continuing operations. The share trades an average of R188,000 daily, making it viable for private investors, with potential upside from any economic recovery in South Africa.
Our opinion on the current state of ENXGROUP(ENX)The enX Group (ENX) is a diversified industrial company catering to the petrochemical, fleet management, logistics, and industrial sectors. It includes divisions such as Austro, which distributes wood-working equipment, and New Way Power, which provides diesel generators. Its fleet division focuses on fleet management, logistics, and vehicle tracking, while ENX Petrochemicals markets lubricants, polymers, rubber, and chemicals in Southern Africa.
The company has actively streamlined its operations, selling off several non-core assets, including Eqstra in 2019 and EIE Group in April 2022, which allowed for debt reduction and special dividends for shareholders. The company also completed the sale of Eqstra Investments in June 2024, resulting in another special dividend of R5.00 per share.
In its results for the six months ending 29th February 2024, enX reported revenue up by 5% and headline earnings per share (HEPS) up 110%. Growth was driven by increased volumes in polyethylene, specialty chemicals, and generator sales, especially to data centers, though lower base oil pricing impacted average selling prices.
In a trading statement for the year ending 31st August 2024, enX estimated HEPS growth between 77% and 87%, but a decline of 6% to 16% for continuing operations. The share trades an average of R188,000 daily, making it viable for private investors, with potential upside from any economic recovery in South Africa.
Our opinion on the current state of ENXGROUP(ENX)The enX Group is a diversified industrial company operating primarily in Southern Africa, with a portfolio that spans across several key sectors, including petrochemicals, fleet management, logistics, and industrial equipment. The company has a strategic focus on distributing branded products and services, making it integral to industrial and commercial operations in the region.
**Diverse Operations and Strategic Disposals:**
enX’s operations are quite diverse, reflecting its involvement in various facets of the industrial sector. This includes Austro, which focuses on distributing woodworking equipment and tooling, and New Way Power, known for its manufacturing, installation, and maintenance services for diesel generators. The fleet division of enX is involved in fleet management and logistics as well as vehicle tracking, whereas ENX Petrochemicals engages in the production and marketing of oil lubricants, plastics, polymers, rubber, and specialty chemicals.
The company has been actively managing its portfolio through strategic disposals, which have been key to its financial strategy and capital allocation. Notable transactions include the sale of Eqstra to Bidvest for R3.1 billion in July 2019, and the sale of its British forklift and container business for GBP 31 million in April 2021. These disposals have enabled the company to pay down debt significantly, demonstrating a proactive approach to improving its financial health.
**Special Dividends and Financial Performance:**
enX has also declared special dividends following these sales, highlighting its commitment to returning value to shareholders. This includes a special dividend of 200c per share in April 2022 following the sale of the EIE subsidiary and another special dividend of R1.50 per share in August 2022 after disposing of Impact Forktrucks and the EIE Group.
For the six months ending on 29th February 2024, enX reported a 5% increase in revenue and a substantial 110% rise in headline earnings per share (HEPS). However, the net asset value (NAV) experienced a slight decline to 1386c per share. The growth in revenue was primarily driven by increased sales volumes across its product lines—particularly polyethylene, specialty chemicals, and generators, which have been in high demand by large data-center customers. Despite an increase in toll-blending volumes, the average selling prices dipped, influenced by lower base oil pricing.
**Market Position and Investment Outlook:**
enX trades an average of R320,000 worth of shares daily, making it accessible and practical for private investors. The company's recent financial results and proactive management of its asset portfolio underscore its resilience and strategic positioning within the industrial sector. Currently, the share is on an upward trend, likely reflecting positive investor sentiment towards its operational success and strategic disposals.
Given the breadth of enX's operations and its strategic focus on core industrial services and products, the company is well-positioned to benefit from any improvements in the South African economy. Its ability to make strategic acquisitions both locally and in the UK further supports its growth trajectory, making it an attractive prospect for investors looking for exposure in the industrial sector.
Our opinion on the current state of ENXGROUP(ENX)The enX Group (ENX) is a "...diversified industrial group that provides branded products and services to the petrochemical, fleet management, logistics and industrial sectors." It includes Austro, which distributes wood-working equipment and tooling. Finally, it includes New Way Power, which manufactures, installs, and maintains diesel generators. Its fleet division engages in fleet management and logistics as well as vehicle tracking. Then ENX Petrochemicals produces and markets oil lubricants, plastics polymers, rubber, and specialty chemicals in Southern Africa. The company disposed of the EIE group with effect from 1st April 2022.
On 15th July 2019, the company announced that it had sold Eqstra, a fleet management company, to Bidvest for R3.1bn. On 15th April 2021, the company announced that it had sold its British fork-lift and container business for GBP31m. The proceeds will be used to pay down debt. This is clearly a company that will benefit directly from any improvement in the South African economy, but which is making acquisitions both locally and in the UK to ensure growth, no matter what happens.
On 4th April 2022, the company announced a special dividend of 200c per share as a result of the sale of its subsidiary, EIE. On 1st August 2022, the company announced a special dividend of R1.50 per share as a result of the disposal of Impact Forktrucks and EIE Group.
In its results for the year to 31st August 2023, the company reported revenue up 26% and headline earnings per share (HEPS) from continuing operations up 16%. The company said, "The results for the year ended 31 August 2023 reflect continued strong performance in all our business units notwithstanding the challenging economic conditions experienced."
In a trading statement for the six months to 29th February 2024, the company estimated that HEPS would be between 192c and 200c compared with 70c in the prior period.
The share is trading an average of R108,000 worth of shares changing hands each day, which makes it practical for private investors. It has also been in an upward trend recently.
Our opinion on the current state of ENXThe enX Group (ENX) is a "...diversified industrial group that provides branded products and services to the petrochemical, fleet management, logistics and industrial sectors". It includes Austro which distributes wood-working equipment and tooling. Finally, it includes New Way Power which manufactures, installs, and maintains diesel generators. Its fleet division engages in fleet management and logistics as well as vehicle tracking. Then ENX Petrochemicals produces and markets oil lubricants, plastics polymers, rubber, and speciality chemicals in Southern Africa". It disposed of the EIE group with effect from 1st April 2022. On 15th July 2019, the company announced that it had sold Eqstra, a fleet management company, to Bidvest for R3,1bn. On 15th April 2021, the company announced that it had sold its British fork-lift and container business for GBP31m. The proceeds will be used to pay down debt. This is clearly a company that will benefit directly from any improvement in the South African economy, but which is making acquisitions both locally and, in the UK, to ensure growth, no matter what happens. On 4th April 2022, the company announced a special dividend of 200c per share as a result of the sale of its subsidiary, EIE. On 1st August 2022, the company announced a special dividend of R1.50 per share as a result of the disposal of Impact Forktrucks and EIE Group. In its results for the year to 31st August 2023 the company reported revenue up 26% and headline earnings per share (HEPS) from continuing operations up 16%. The company said, "The results for the year ended 31 August 2023 reflect continued strong performance in all our business units notwithstanding the challenging economic conditions experienced". The share is trading much better volumes recently with an average of R370 000 worth of shares changing hands each day - which makes it practical for private investors. It has also been in an upward trend recently.
Our opinion on the current state of ENXThe enX Group (ENX) is a "...diversified industrial group that provides branded products and services to the petrochemical, fleet management, logistics and industrial sectors". It includes Austro which distributes wood-working equipment and tooling. Finally, it includes New Way Power which manufactures, installs, and maintains diesel generators. Its fleet division engages in fleet management and logistics as well as vehicle tracking. Then ENX Petrochemicals produces and markets oil lubricants, plastics polymers, rubber, and speciality chemicals in Southern Africa". It disposed of the EIE group with effect from 1st April 2022. On 15th July 2019, the company announced that it had sold Eqstra, a fleet management company, to Bidvest for R3,1bn. On 15th April 2021, the company announced that it had sold its British fork-lift and container business for GBP31m. The proceeds will be used to pay down debt. This is clearly a company that will benefit directly from any improvement in the South African economy, but which is making acquisitions both locally and, in the UK, to ensure growth, no matter what happens. On 4th April 2022, the company announced a special dividend of 200c per share as a result of the sale of its subsidiary, EIE. On 1st August 2022, the company announced a special dividend of R1.50 per share as a result of the disposal of Impact Forktrucks and EIE Group. In its results for the six months to 28th February 2023 the company reported revenue from continued operations up 22% and headline earnings per share (HEPS) up 32%. The company said, "Revenue from continuing operations increased 22% to R2.917 billion (2022: R2.386 billion) mainly supported by increased demand for power solutions and related services arising from load-shedding, higher selling prices due to pass through of increasing base oil and chemical input prices period-on-period, and continuing recovery in activity". In a trading statement for the year to 31st August 2023 the company estimate that HEPS would decrease by between 34% and 43% lower. The share is trading much better volumes recently with an average of R370 000 worth of shares changing hands each day - which makes it practical for private investors. It has also been in an upward trend recently.