ISA Holdings, is the best-performing tech stock among the listed technology companies of South Africa\u2019s Johannesburg Stock Exchange (JSE).<\/p>\n\n\n\n
Between 1 January and 12 June 2024, four of the 12 companies compared\u2014PBT Group, Datatec, Bytes Technology, and Capital Appreciation\u2014saw their share prices in the negative.<\/p>\n\n\n\n
While some South African Technology companies listed on the JSE have had a tough year so far, two South African tech stocks, ISA Holdings and 4Sight Holdings, produced price returns of over 50%.<\/p>\n\n\n\n
ISA Holdings has returned just over 58% year-to-date, and 4Sight Holdings has returned 50%.<\/p>\n\n\n\n
Information Security Architects (ISA) Holdings has been operating since the 1990s. Initially, the company focused on reselling firewall and antivirus technologies. <\/p>\n\n\n\n
Over the years, it has transitioned to cybersecurity, a field that is vital as corporations face increasing threats from ransomware attacks and data breaches. <\/p>\n\n\n\n
For the year ending February 2024, ISA reported a remarkable 33% revenue growth, with 88% of its revenue coming from subscription models. <\/p>\n\n\n\n
The company also achieved a substantial 35.5% increase in headline earnings per share (HEPS). <\/p>\n\n\n\n
Excluding equity-accounted earnings, ISA’s profit before tax (PBT) margin stood at 22.3% for the financial year. <\/p>\n\n\n\n
Notably, ISA plans to pay out all of its HEPS as dividends, maintaining the same approach as last year, which is positive news for investors.<\/p>\n\n\n\n
4Sight Holdings\u2019 subsidiaries specialise in artificial intelligence (AI), machine learning, big data, cloud, and business intelligence.<\/p>\n\n\n\n
The company services customers in the telecommunications, mining, manufacturing, energy, chemicals, private and public sectors.<\/p>\n\n\n\n
Its annual results, which ended 30 May 2024, showed an increase in revenue of 57.7% and operating profit of 76.9%.<\/p>\n\n\n\n
Basic earnings per share increased by 153.8% from 2.378 cents per share to 6.036 cents per share, while its cash balance increased by 57.8%.<\/p>\n\n\n\n
Both ISA and 4Sight Holdings have impressive cash quality earnings and are operating in growth areas.<\/p>\n\n\n\n
On the opposite end of the spectrum, Capital Appreciation saw the biggest losses, albeit only -6%. <\/p>\n\n\n\n
According to the company, the software division encountered unexpected challenges this year due to bench overcapacity, which delayed the commencement of some large client projects. <\/p>\n\n\n\n
Despite delivering several successful software projects and acquiring new customers, the division\u2019s financial performance did not meet expectations.<\/p>\n\n\n\n
Regardless, the group did, however, grow gross revenue by 19% to R1.2 billion and earnings before interest, taxes, depreciation and amortisation (EBITDA) by 53% to R252.8 million.<\/p>\n\n\n\n
Following Capital Appreciation are Bytes Technology and Datatec, which saw their YTD performance slump by 5% and 2%, respectively.<\/p>\n\n\n\n
The table below compares the performance of the shares of South Africa\u2019s Tech stocks and what the value of a R1,000 investment in each company at the start of the year would be today (as of 12 June 2024).<\/p>\n\n\n\nCompany<\/th> Share price change in YTD 2024<\/th> Today\u2019s value of R1,000 investment invested at the start of 2024<\/th><\/tr><\/thead> ISA Holdings<\/td> +58.40%<\/td> R1 584<\/mark><\/td><\/tr> 4Sight Holdings<\/td> +50.00%<\/td> R1 500<\/mark><\/td><\/tr> Allied Electronics Corp.<\/td> +32.52%<\/td> R1 325<\/mark><\/td><\/tr> Karooooo<\/td> +27.38%<\/td> R1 273<\/mark><\/td><\/tr> Prosus N.V.<\/td> +26.89%<\/td> R1 269<\/mark><\/td><\/tr> Naspers<\/td> +26.34%<\/td> R1 263<\/mark><\/td><\/tr> EOH Holdings<\/td> +8.39%<\/td> R1 084<\/mark><\/td><\/tr> PBT Group<\/td> -1.38%<\/td> R986<\/mark><\/td><\/tr> Datatec<\/td> -1.90%<\/td> R981<\/mark><\/td><\/tr> Bytes Technology<\/td> -5.52%<\/td> R945<\/mark><\/td><\/tr> Capital Appreciation<\/td> -5.92%<\/td> R941<\/mark><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
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