Bulls n Bears:::: On a Date with Zimplow Holdings Limited

Mon Jan 30 18:29:53 CAT 2023

On a Date with Zimplow Holdings Limited

Helping the economy of East & Southern Africa to grow through extracting value from its key asset, LAND using our expertise

Welcome to On a Date with a listed company on the Zimbabwe Stock Exchange (ZSE)

THREAD: On a Date with Zimplow Holdings Limited (ZIMW)

#1. History

1939, Baecher a renowned executive is head hunted by a group of business people to manufacture agricultural implements.

Rhodesia has been importing farming implements from Europe but WW2 is on the horizon and supply disruptions are inevitable. 

Rhodesian Plough and Machinery Company (Rhoplow) is established in Bulawayo buying its site within 2 years.

1951, Rhoplow is listed on the Rhodesia Stock Exchange (RSE) now 

@ZSE_ZW . 3 years later a small machine shop Rhobolt is opened making fasteners.

1980, After independence Zimplow (ZIMW) is born and Rhobolt changes name to CT Bolts.

Zimplow's major shareholder Fedmech Holdings of South Africa disposes its shares to Rothmans of Pall.

2006, CT Bolts is acquired by ZIMW diversifying its product range.

2008, Seeking to bolster its position in the fasteners market it acquires Bulawayo Steel Products (BSP) trading as Tassburg.

2012, Tractive Power Holdings (TPH) is bought which held Farmec, Barzem, Manica Road Investments, Northmec and Puzey & Payne.

2013, TPH is delisted from the ZSE and is integrated into ZIMW. Puzey & Payne is sold to its management consortium led by Charles Nyambuya

Tassburg is sold off for a consideration of US$500K to retiring members of its management with plan to focus on CT Bolts

2015, Sino Properties becomes the largest shareholder in ZIMW after a dismal rights issue to restructure the balance sheet.

Exiting CASE equipment dealership agreement.

2021, Acquiring Tredcor trading as TrenTyre and Birmingham Investments from Unifreight

Scanlink is acquired as well to enhance its logistics offering which is complementary to other units.

2022, Barloworld Equipment UK which holds the global franchise rights to distribute Caterpillar (CAT) terminated its dealership agreement with Barzem.

#2. Operations,

ZIMW is a supplier and distributor of premium equipment

FOR

Agricultural, construction, logistics and mining sectors purposed for tiling to earthmoving.

It operates 9 units which are in specialized markets differentiated according to client 

Mealie Brand

It is a manufacturer and distributor of agricultural implements which include,

Ploughs

Planters

Cultivators

Hoes

Scotch Carts

Shellers

These are Made in Zimbabwe and exported to markets in Southern and East Africa.

Farmec

Flagship for mechanised agriculture equipment holds franchise agreements for Massey Ferguson, Valtra, Challenger tractors and combine harvesters.

Powermec

It holds the rights to distribute and service Perkins engines. Offers solar systems solutions.

CT Bolts

A distributor of bolts, nuts, nails and a range of fasteners for different sectors.

Scanlink

A sole distributor of Scania products offering vehicle sales, generators and after sales support.

Trentyre

Exclusive distributor for the Goodyear brand

Manica Road Investments

Birmingham Investments

These two are property owning entities.

Barzem

A joint venture unit were ZIMW owns 51% and Barloworld Equipment owns 49%. A dealer representative for CAT and Hyster brands.

ZIMW supported brands 👇

#3. Customers

• Government of Zimbabwe

• Municipalities/councils

• Commercial Farmers

• Subsistence Farmers

• Mining Houses

• Transporters (Cargo & Passengers)

• Contractors

• Developmental partners

• Educational Institutions

#4. Competitors,

Hastt

A manufacturer of agricultural implements, haulage equipment, ploughs & harrow discs through Haka brand.

AM Bus & Truck

An importer and distributor of original heavy duty spares for DAF and Volvo engines competitor to Scanlink A subsidiary of ZESA Holdings.

Agricon

The official distributor of 

@CASE_IH

, Kuhn & Sany.

MMI

The official distributor of Komatsu a civil engineering equipment manufacturer in Japan.

@ntszim

@AFGRI1

JCB link

Shepco BMA Fasteners

Zimbabwe Motor Distributors

William Bain & Company

#4. Challenges,

Cancellation of the CAT dealership agreement, Barzem's business model revolved around CAT

Access to foreign currency, business relies heavily on importing thereby stifled by inadequate forex

Influx of cheaper machinery from India & China

 <mailto:zitfmktg at zitf.co.zw> 

#5. Share price,

22.99 ZWL  (US2.74c) per share as at Jan 30th, 2023

17,00 ZWL per share on the 3rd of January 2023

7,920.94 ZWL million market cap (US$9.43m) as at Jan 30th, 2023

13th on ranking in terms of year to date performance on the ZSE

34th most traded stock over the past 3 months to 12/01/2023

344,580,486 issued shares 

#6. Shareholding,

24.44% is controlled by an investment vehicle registered in Mauritius owned by a Singaporean company in mining.

9.92% controlled by Unifreight Africa after swapping Birmingham Investments & Tredcor for ZIMW shares.

#8. Management,

Vimbayi Nyakudya - Group CEO, 2019

A qualified chartered accountant with KPMG and a holder of a Masters in Business leadership from UNISA.

Credited with restructuring the messy finances of the group when he joined in December 2015 as CFO.

#9. Pitch,

Benefiting from the government led infrastructural projects. Contractors are buying/leasing earthmoving equipment.

An integrated heavy machinery distributor of reputable brands with an after sales service done by experts.

Resurgence of mining.

Developed export markets for its Mealie Brand in a number of Southern and East African countries which mitigate single market risks.

The property portfolio has grown with the addition of Birmingham Property which supports future financing of the business

Each week will be on a DATE with a company listed on the ZSE with Martin Mataga an Investment Democrat. Twitter @MartinMataga. The purpose of this thread is to assist investors to have a minimum appreciation of listed firms. Bulls n Bears has made reasonable effort to validate and update the information before circulation but the onus is on the investor consult their financial advisor. 

Disclaimer: Do not misconstrue this thread as investment advice. DATE companies before you buy their shares. For comments and questions reply to  <mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com

Invest Wisely!

Bulls n Bears 

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