Energy storage solutions ought to be a good investment play as the world looks for cleaner sources of power. But automotive components and battery manufacturer Metair shows it is not that simple. In the year to December, Metair’s revenue lifted 16% but headline earnings fell 8%. The dividend was reduced to 70c from 80c in 2015. Return on equity slipped to 10.2% from 12.3% while net asset value edged down 16.4% to R20.59/share. The shares are trading on a p:e of 10.6 at the current price of R24.27, but they have almost halved since early 2014, when they were at R45. More than half of Metair’s revenue comes from energy storage solutions, which include batteries for the automotive market as well as for utilities like renewable energy and nuclear power generators. The company’s battery brands include First National Battery, Mutlu Akü in Turkey and Rombat in Romania. The remainder of revenue is earned from automotive components. Metair supplies all SA’s main automotive manufacturers.
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