The small South African tech company that delivered 40% return in 2023
While many South African companies listed on the JSE had a tough year, one South African tech stock, 4Sight Holdings, produced price returns of over 40%.
4Sight Holdings is a diversified investment holding company listed on the JSE’s AltX board.
It offers a range of technology products and services through its subsidiaries, which focus on digital transformation.
4Sight Holdings’ subsidiaries specialise in artificial intelligence (AI), machine learning, big data, cloud, and business intelligence.
The company services customers in the telecommunications, mining, manufacturing, energy, chemicals, private and public sectors.
4Sight Holdings is a true small-cap company with a market cap of R202 million. It, therefore, does not enjoy the attention of institutional investors or large fund managers.
Despite its small size, it has been among the best-performing companies on the JSE this year.
Its share price enjoyed strong support in recent weeks, which helped it to increase from R0.25 in the beginning of August to R0.50 in September.
Small-cap shares are often volatile, with big share moves based on a few small trades, but 4Sight Holdings’ share price increase is backed up by good financials.
Its financial results for the six months ended 30 June 2023 showed that it increased revenue by 37% and operating profit by 121%.
4Sight generated strong free cash flow for the period under review, growing by 33.0% to R93.4 million from R70.3 million as of 31 December 2022.
It also increased basic earnings per share to 3.828 cents per share from 1.287 cents per share and headline earnings per share to 3.828 cents per share from 1.288 cents per share.
“4Sight managed to clear all legacy challenges of prior years and is now on a solid path of growth and sustained profitability,” the company said.
It remained positive about the growth opportunity in digital transformation, supported by the adoption of more cloud and AI solutions.
The charts below show 4Sight Holdings’ strong performance over the last three years.
Revenue
Net income
Share price
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