On a roll...


ALTX-LISTED ONELOGIX is cur­rently mak­ing an at­trac­tive in­vest­ment case, thanks to the solid fi­nan­cial fun­da­men­tals of the trans­port and lo­gis­tics com­pany. OneLogix has an earn­ings mul­ti­ple of 9,62, con­sid­er­ably higher than the AltX av­er­age equiv­a­lent. How­ever, it’s of­fer­ing strong growth op­por­tu­ni­ties and the 126% leap in its share price over 2010 (against 9% growth in the AltX in­dex as a whole over the same pe­riod) is ev­i­dence the group is show­ing ap­peal. Would-be in­vestors would be wise to buy the stock now in case it en­ters over­priced ter­ri­tory. OneLogix is on an up­ward earn­ings path, bar a slip dur­ing the 2009 eco­nomic slow­down. Most re­cent earn­ings have re­cov­ered at lev­els over 20% higher than its 2008 peak.

OneLogix’s main line of busi­ness is trans­port­ing com­mer­cial and con­sumer ve­hi­cles coun­try­wide and into sur­round­ing re­gions. This mar­ket is cur­rently in a sus­tained re­cov­ery mode fol­low­ing a near-dis­as­trous slow­down in 2008/2009. Ve­hi­cles sales aren’t ex­pected to reach last year’s heady 20% (and plus) growth rates, which were as a re­sult of ex­tremely low base num­bers but should sus­tain at lively lev­els, ac­cord­ing to mar­ket com­men­ta­tors.

The com­pany has stated it’s on the ac­qui­si­tion hunt for as­sets, which would com­ple­ment its ex­ist­ing lo­gis­tics of­fer­ing, fol­low­ing the suc­cess­ful ac­qui­si­tion of niche bulk haulage com­pany RFB Lo­gis­tics more than a year ago. An­other re­cent add-on has been At­las Panel­beat­ers, which spe­cialises in heavy com­mer­cial ve­hi­cles. OneLogix is cur­rently in a strong cash po­si­tion to al­low for ex­pan­sion: the group ended its 2010 fi­nan­cial year with cash re­serves of R60,2bn – a vast im­prove­ment from the R27,4bn cash po­si­tion re­ported at year-end 2009. Debt to eq­uity is at a man­age­able 1,08.

There are some risks present at OneLogix: namely some squeez­ing of profit mar­gins at its key ve­hi­cle trans­porta­tion di­vi­sions. Man­age­ment is at­tempt­ing to mit­i­gate that with en­try into new mar­kets, al­though any suc­cess re­mains to be seen in its next in­terim re­sults.

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