Shares of KAP Industrial, whose interests range from mattresses to chemicals, had their best day in more than six months on Wednesday, after it said headline profits could double in its year to end-June.
Group headline earnings per share (HEPS) are expected to rise in a range of 88% and 108% to as much as 78.8c, the company said in a trading update, which would be more than 80% above pre-pandemic levels.
After rising as much as 10.7% in intraday trade, to a two-month high, KAP’s share price ended the day 8.22% higher at R4.61, in its biggest one-day gain since early February. The company now has a market capitalisation of R11.7bn and the share price is up more than 12% in the past month.
KAP Industrial operates in 11 Sub-Saharan countries, with its businesses including the PG Bison business, which manufactures decorative wood panels, and Restonic, which manufactures mattresses. It also produces automotive components, as well as having chemicals and logistics interests.
The group didn’t go into details on Wednesday, but had said in June that its performance was “pleasing” given issues such as violent riots, flooding, global supply-chain disruptions and the war in Ukraine.
The group said its PG Bison business was experiencing robust demand and its production facilities were operating at full capacity, while its chemical interests had performed “exceptionally well” amid improved selling prices and strong demand.
The company has also said previously that while not immune to global supply-chain issues, it mostly relies on its own raw materials, allowing it to carve out some market share as competitors struggled with imports. It has also recently indicated it had been strategically boosting its inventory levels.
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