BSE biggest movers

Good morning 😃🌞☀️,happy holidays, let’s get into it!

 The top gainers over the past year on the Botswana Stock Exchange, starting with the highest annual returns to the lowest. We’ll also explore what each company does, what’s driving their gains, and factors to watch going forward.

1. CA Sales Holdings (CAS-EQO) — 40.5% 1-Year Return

What they do

CA Sales Holdings (CA&S) is a distribution, logistics, and retail execution company in the fast-moving consumer goods (FMCG) sector. They operate in Botswana, Namibia, Eswatini, South Africa, Zambia, Zimbabwe and other regional markets. Their services cover warehousing, merchandising, transport, shopper marketing, and data analytics.

Drivers of performance

• Strong revenue growth and improved profitability, with recent results showing both higher turnover and operating profit.

• Expansion of services beyond logistics, into higher-margin activities such as merchandising and shopper marketing.

• Geographic diversification across multiple Southern African countries reduces reliance on one market.

• Dividend growth, which tends to attract investors seeking yield.

Factors to watch

• The current share price may already reflect high expectations, leaving little room for underperformance.

• Dependence on FMCG clients means pricing pressures, fuel costs, and supply chain disruptions can affect margins.

• Currency volatility and regional regulatory changes could add risk.

2. Choppies Enterprises (CHOP-EQO) — 34.6% 1-Year Return

What they do

Choppies is one of Botswana’s largest supermarket chains, with operations extending into Zimbabwe, Zambia, and Namibia. The company sells groceries, liquor, and general merchandise.

Drivers of performance

• Retail sales grew to over BWP 9 billion in the latest financial year, representing about 14.7 percent growth.

• Gross profit margins improved, showing better efficiency in operations.

• A visible turnaround strategy has increased investor confidence, highlighted by insider share purchases by the CEO worth approximately US$1 million.

Factors to watch

• Profit after tax declined despite gains in revenue and gross profit, signaling pressure at the bottom line.

• Debt levels and cash flow remain concerns, which could strain operations in weaker trading environments.

• Competition and rising input costs (fuel, imported goods) could limit further margin gains.

3. Standard Chartered Bank Botswana (SCBB-EQO) — 24.1% 1-Year Return

What they do

Standard Chartered Bank Botswana is part of the global Standard Chartered Group, offering retail, corporate, and investment banking services.

Drivers of performance

• Consistently strong earnings growth, averaging over 40 percent annually in recent years.

• High return on equity, around 27 percent, indicating strong profitability relative to shareholder capital.

• Attractive dividends supported by steady banking operations and a stable client base.

Factors to watch

• Exposure to credit risk if the broader economy weakens and defaults rise.

• Regulatory pressures related to capital adequacy and interest rate management.

• Reliance on interest margins makes the bank sensitive to rate changes and inflation.

4. Sefalana Holding Company (SEF-EQO) — 20.0% 1-Year Return

What they do

Sefalana is a diversified retail and consumer goods group in Botswana. Its business spans supermarkets, hypermarkets, cash and carry outlets, manufacturing of basic consumer goods, distribution, and industrial supplies.

Drivers of performance

• Revenue growth in core retail operations, supported by the sale of essential goods.

• Operational efficiencies leading to margin improvements.

• Diversification across retail, manufacturing, and property reduces earnings volatility.

Factors to watch

• Rising import costs, inflation, and higher fuel prices could squeeze margins.

• Competition in retail remains intense, particularly against other supermarket chains.

5. Turnstar Holdings (TURN-EQO) — 16.5% 1-Year Return

What they do

Turnstar is a property investment and management company with a portfolio spanning commercial, retail, and residential properties in Botswana and abroad.

Drivers of performance

• Stable rental income streams supported by long-term tenants.

• Positive sentiment in real estate as inflation drives investors toward property-linked equities.

Factors to watch

• Dependence on occupancy rates and tenant stability.

• Property market risks tied to interest rates and economic conditions.

6. Sechaba Brewery Holdings (SECH-EQO) — 15.6% 1-Year Return

What they do

Sechaba Brewery Holdings is an investment company with a controlling stake in Kgalagadi Breweries Limited (KBL), Botswana’s leading brewer of alcoholic and non-alcoholic beverages.

Drivers of performance

• Recovery in post-pandemic consumer demand for beverages.

• Strong market dominance with leading brands securing consistent sales.

Factors to watch

 Susceptible to excise taxes and government regulations around alcohol.

• Shifts in consumer preferences or declining disposable incomes could affect growth.

7. Absa Bank Botswana (ABBL-EQO) — 13.7% 1-Year Return

What they do

Absa Bank Botswana is a major commercial bank offering personal, business, and corporate banking services.

Drivers of performance

• Steady growth in loans and advances supported by Botswana’s stable banking environment.

• Improved profitability as costs are managed and interest margins hold up.

Factors to watch

• Similar to other banks, credit risk and regulatory changes remain key concerns.

8. Botswana Insurance Holdings (BIHL-EQO) — 12.7% 1-Year Return

What they do

BIHL is a financial services group primarily engaged in life insurance, asset management, and investments.

Drivers of performance

• Consistent premium income from insurance operations.

• Strong investment income supporting overall profitability.

Factors to watch

• Sensitive to interest rate changes and market performance affecting investment portfolios.

9. First National Bank Botswana (FNBB-EQO) — 10.1% 1-Year Return

What they do

FNBB is a leading commercial bank in Botswana offering retail, corporate, and digital banking services.

Drivers of performance

• Resilient earnings supported by strong market share.

• Increased focus on digital banking and efficiency improvements.

Factors to watch

• Market saturation in Botswana’s banking sector.

• Pressure on margins if competition increases or economic growth slows.

10. Others with modest gains

Engen Botswana (ENG-EQO) posted 6.1 percent returns, New African Properties (NAP-EQO) 4.1 percent, and several property companies such as Primetime (PTPH-EQO) and Far Property (FPC-EQO) recorded smaller moves. These reflect steady, income-driven business models but limited growth catalysts in the short term.

Key Takeaways

• Distribution and FMCG companies like CA Sales and Choppies outperformed due to strong consumer demand and better operational efficiency.

• Banks such as Standard Chartered, Absa, and FNBB showed resilience, supported by high returns on equity and stable dividends.

• Property and insurance companies offered moderate returns, reflecting their role as income and stability plays.

Source: simplywallst

Enjoy the independence holidays 🇧🇼