Mustek: boosted by 3D, fibre and cryptocurrency
Revenue from 3D printing is still small, but CEO David Kan believes that over time it will grow
Mustek’s share price had a good run last year, ending 16.33% stronger from a 38.36% slump in 2016. Since the start of 2018 and the end of February the share grew another 14%. But its liquidity is still low and despite the recent rise in the share it is still very cheap, trading well below book value. A large shareholder sold down its stake in Mustek over time, which has resulted in a price overhang. Founded in 1987 by David Kan and listed on the JSE 10 years later, Mustek started off as an assembler of computers under the Mecer brand. It expanded to resell technology products such as 3D printers and tablets for international brands such as Acer, Fujitsu, Asus, Huawei and Lenovo. It also ventured into fibre network cables and solar energy. Its diversification into new products has lifted earnings over the years, and group revenue in the six months to December grew 1.5% to R2.65bn because of management’s decision to reduce its supply to retailers. This decision the increased gross pro...
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