Share price: : 660c JSE code: HPR
HOLD THIS MIGHT BE AN UNFAMILIAR name to most investors — the acronym standing for Hosken Passenger Logistics & Rail — as the company was the subject of a low-key unbundling (as a dividend in specie) from investment company HCI through its subsidiary Niveus Investments.
The inferred value of HPLR prior to being listed on the JSE was 778c/share. Not long after listing, HPLR was steered right down to 441c — perhaps understandably, since the prolonged bus strike would have implications for main subsidiary Golden Arrow Bus Services (Gabs). But then a upbeat trading statement revved up the share price considerably.
Successive HCI annual reports will show that Gabs is a perennially profitable contender thanks to attractive subsidies and ongoing investment in fleet efficiencies.
IM puts a hold on HPLR, as at this juncture it’s impossible to determine how “logistics and rail” will drive the business. Presumably HPLR will look to make valueadding acquisitions. But until deal-making endeavours are evident and the profit prowess of Gabs can be reassessed, the HPLR shares might idle along.
Longer-term investors might consider clambering aboard, remembering that the most recent HCI unbundling, Montauk, also endured a slow start before rocketing.