Our opinion on the current state of ISB

Insimbi (ISB) is a group which manufactures and supplies specialist products to the industrial sector. They source, buy, package and process ferrous and non-ferrous alloys, refractory and foundry materials, plastic blow-moulding and injection moulding. They recycle metal alloys and they provide technical support to users of their products. In its results for the six months to 31st August 2023 the company reported revenue down 4% and headline earnings per share (HEPS) down 6%. The company said, "Operating conditions in the first half of our new financial year remained challenging, although price fluctuations in our key commodities (copper, aluminium, nickel and steel) largely balanced each other out. Largely maintained revenue at over R3 billion (-4% vs interim period in 2022) although operating profit declined 9%". Technically, the share was in an upward trend until June 2018, but then fell to a low of 50c on 18-12-20. Since then it has risen to 115c. In our view, this company will benefit directly from any recovery of the South African economy but it remains a risky commodity share. Its value traded is an average of about R47 000 per day, making it just practical for a small investment by private investors.