Our opinion on the current state of CAA

CA Sales listed on the JSE on 27th June 2022 and traded 34 deals on the day, opening at 505c and closing at 745c. The company supplies food, health, alcohol, and fast-moving consumer goods (FMCG) to a wide range of companies. It is involved in warehousing, distribution, marketing, and point-of-sale. In its results for the six months to 30th June 2023, the company reported revenue up 22.5% and headline earnings per share (HEPS) up 21.5%. The company said, "Revenue growth was driven by organic growth, acquisitions, expansion into new regions as well as the on-boarding of new clients to the group’s portfolio. As a result, gross profit increased by 25.9% to R786.8 million (H1 2022: R625.2 million)."

In a trading statement for the year to 31st December 2023, the company estimated that HEPS would increase by between 23% and 28%. The company said, "HEPS increased due to good organic growth from all the operations as well as the successful onboarding of new clients." This is one of the only new listings on the JSE in 2023 and, after an initial period of sideways movement, the share price has been rising steadily. We added it to the Winning Shares List on 25th August 2023 at a price of 775c. By 26th February 2024, it was trading for 1140c - a gain of 47% in six months. We believe it will continue to perform.