Thread by @MartinMataga

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

Dating is a critical stage to any investor considering to take a position on any asset class even shares.

THREAD: On a Date with Axia Corporation

#1. History,

1968, TV Sales & Hire is launched with an appliance credit selling model.

1999, Innscor Africa establishes a distribution business.

2002, Transerv a light motor vehicle automative spare parts business is formed.

2016, Innscor Africa unbundle the assets of its speciality retail and distribution business to form Axia Corporation.

Listing of the business on the ZSE in the same year.

#2. Operations,

Axia Corporation is a,

• Speciality retailer of,

1.) Household furniture and appliances

and

2.) Light motor automative spare parts

• Distribution & Logistics of fast moving consumer goods.

A total of 3 business units operated.

TV Sales & Home (formerly TV Sales & Hire) 66.67%

A leading furniture and electronic retailer.

52 retail shops are operated across major towns and cities of Zimbabwe.

The unit represents a number of leading appliance brands such as LG, Sharp & Defy.

Two manufacturing subsidiaries are owned by TV Sales & Home,

1. Restapedic Bedding

60% of the 2nd largest bed producer in Zimbababwe is controlled by the unit.

2. Legend Lounge

100% of the premium quality manufacturer of lounge suites is owned by the unit

Transerv (51%)

A leading retailer of automative spares and accessories in Zimbabwe.

Represents a number of brands such as Gabriel, Safeline, Dunlop, Bosch and Willard.

42 retail shops, fitment centres and automative specialist centres operated.

Distribution Group Africa (DGA), 50.01%

The unit has exclusive relationships with leading brands in the FMCG sector.

Its competitive advantage lies in,

• Inbound clearing

• Warehousing

• Full National Logistics

• Marketing

• Merchandising

DGA operates in 3 countries (Zimbababwe, Zambia and Malawi). The largest operations in Zimbabwe.

5 warehouses are managed with a total of +26,000 sqm, 2 warehouses are owned by the unit and 3 leased.

76 vehicles with varying carrying capacities are managed.

#3. Competitors,

TV Sales & Home

° Teecherz

° Nash

° Coloursel

Transerv

° Impala Auto Spares

° Clover Leaf Motors

° Inds Motor Spares

DGA

° Brands Africa

° Route to Market

° Moldon

#4. Shareholding

ZMD Investments controls 19.41% of Axia. It is an investment vehicle linked to Innscor Africa.

HM Barbour controls 18.12% of Axia. Another Innscor Africa linked Investment vehicle.

Old Mutual Life Assurance owns 10.12% of the business

#5. Share Price,

26,98 ZWL per share as at 24 Dec.

9,17 ZWL per share at the start of the year.

194% gained to date

37th on the ZSE ranking according to performance.

21st most traded stock in the past 3 months to Dec 24.

552,150,300 issued shares.

#6. Pitch,

Solid business with diversified incomes in terms of business activities and geographical spread.

Part of the Innscor Africa ecosystem of complementary business activities thereby benefit from the synergies.

Bedrock for regional expansion set.

Manufacturing of beds through Restapedic Bedding being ramped up.

TV Sales & Home Investment is helping to fund the construction of a new factory.

The set up of Legend a manufacturer of lounge suites will help improve margins in sourcing of supplies.

Each week will be on a DATE with a company listed on the ZSE.

The purpose of this thread is to have a minimum appreciation of listed firms.

Disclaimer: Do not misconstrue this thread as investment advise DATE companies before you buy its shares.