AN­CHOR CAP­I­TAL – NOT CHEAP BUT PRETTY IM­PRES­SIVE

Finweek English Edition - - SIMON SAYS -

The An­chor Cap­i­tal re­sults came in at the top end of ex­pec­ta­tions with HEPS for the f irst six months to June up 50.2% at 20.8c. The re­ally im­por­tant f ig­ure was that for as­sets un­der man­age­ment (AUM), which grew 74% to R15bn. This is still a rel­a­tively mod­est num­ber but it of­fers in­creased fees while di­rect costs are likely to re­main largely f lat. As­sum­ing the as­set man­ager adds another 50% to HEPS in the sec­ond half, it re­mains on track for 50c HEPS for the full year. When the trad­ing up­date came out the stock was at 1 200c and I said it was look­ing at­trac­tive, but it has run again and as I write this, it is trad­ing at around 1 450c. This puts it on a for­ward P/ E of some 29 times. Not as cheap, but if HEPS is grow­ing at 50%, An­chor Cap­i­tal re­mains at­trac­tive to ad­ven­tur­ous in­vestors.

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