Master Drilling, Zambeef: A Systematic Approach to Value Investing in South Africa

Adrian Saville presented his in-depth investment thesis on Value Investing in South Africa, Master Drilling (JSE: MDI) and Zambeef (London: ZAM) at Wide-Moat Investing Summit 2015.

Master Drilling is a global leader in the raise boring market, operating in Southern Africa, Latin America, Europe, and the U.S. The company has proprietary technology and is owner-managed under Danie Pretorius. It has grown EBITDA at a CAGR of 20% over five years. It earns ROE of ~16% while trading at a P/E ratio of 12x.

Zambeef is one of Zambia’s largest integrated agri-businesses, founded in 1994. The company has West African operations in Nigeria and Ghana and employs 5,860 people. The equity has a market value of only $28 million. The company has $280 million in revenue; it reported a loss in 2014, due to soya bean prices and African swine fever. Zambeef has sold its Zamanita subsidiary to Cargill for $26 million. The shares trade at a forward P/E of 16x.

About the instructor:

Adrian Saville has been involved in the investment management industry since 1994, when he formed an investment vehicle which later led him to establish BayHill Capital Advisors (in 1998), the forerunner to Cannon Asset Managers. Adrian is an executive director and Chief Investment Officer of Cannon Asset Managers. He has experience in managing all of the major asset classes, including equities, bonds, property, cash and derivative instruments. Adrian’s qualifications include a Bachelor of Arts (Honours) degree (cum laude) and M.Com (cum laude) from the University of Natal. He completed his PhD (Econ) at the University of Natal in 1997, for which he was awarded the Economics Society of South Africa’s Founders Medal. He is a UNESCO laureate and a matriculant of Linacre College (Oxford). Alongside his career in asset management, Adrian holds a Visiting Professorship in Economics and Finance at the Gordon Institute of Business Science. He has published widely in peer-reviewed journals and books, and is a member of the Investment Analysts Society and Economics Society of South Africa. Adrian is married to Kerry; they have a daughter, Sydney-Bo, and son, Saxon. Adrian claims that fatherhood is the most rewarding investment he has ever experienced. You can read Adrian’s views on value investing and the world of capital markets on his blog.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

First name:

Last name:

Email address:

City / state / country:

Company:

How did you hear about MOI Global? Select Member referral Staff This website Media / Internet Other

If referral, please provide member's name:

Which of the following applies most closely to you? Select Investment Firm - Head Investment Firm - Analyst or PM Institutional Allocator - Firm C-Level Executive Institutional Allocator - Firm Employee Family Office - Head or Co-Owner Family Office - Employee Non-Investment Firm - C-Level Executive Non-Investment Firm - Employee Other

How do you hope to add value to the community?

Leave this field empty if you're human: