TADVEST LIMITED

Investment Analysis: Tadvest Limited (NSX: TAD / SEM: TAD)

Date: 14 January 2026 Analyst: Senior Equity Desk, JSE

Important Note: Tadvest Limited is not primarily listed on the JSE. It holds a primary listing on the Stock Exchange of Mauritius (SEM) and a secondary listing on the Namibian Stock Exchange (NSX). For South African investors, it is accessible via the NSX. Financials are reported in USD.

Step 1: Data Gathering & Source Verification

I have utilized the most recent financial disclosures available as of January 2026.

• Interim Results (Period Ended 30 June 2025): Released 13 August 2025.
• Source File: Unaudited Abridged Financial Statements June 2025

• SENS Announcement: Interim Results Announcement

• Annual Financial Statements (Period Ended 31 Dec 2024): Released March 2025.

• Source File: Audited Annual Financial Statements 2024

• Key SENS/SEM Activity (L12M):

• 13 Aug 2025: Interim Results (NAV up to $1.93).
• March 2025: Release of Annual Financial Statements.
• Dividend Status: No dividend has been declared for the period under review.

Step 2: Metric Extraction

• Market Cap: ~USD 40.8 Million (Approx. R735 Million)
• Calculated as: ~44.9m shares in issue × USD 0.91 (Last Traded Price on SEM).

• Note: Pricing is indicative due to extreme illiquidity.

• Dividend Yield (L12M): 0.0%

• Status: No dividends declared in the last 12 months. The company prioritizes capital reinvestment and share buybacks over cash distributions.

• Liquidity Check: EXTREME RISK (Fail)

• Average Daily Volume: Frequently Zero.

• Status: Illiquid. The stock trades by appointment only. This is a classic "lobster trap"—easy to get into, very difficult to exit without significant price concessions.

• P/E Ratio: 5.1x

• Calculation: Price ($0.91) / TTM EPS ($0.18).

• Context: Optically cheap, but this reflects the liquidity discount and the nature of investment holding companies.

• Net Asset Value (NAV): USD 1.93 per share (approx. R34.75)

• Reported: As of 30 June 2025.
• Price-to-Book: 0.47x (Trading at a massive 53% discount to NAV).

Step 3: Operational & Strategic Analysis

Business Overview Tadvest is a Mauritius-domiciled investment holding company with a global portfolio. It operates like a private equity fund, holding stakes in:

• Private Equity: Unlisted companies like Nuvo Energy (Solar EPC in SA) and Fruitvest.
• Listed Equity: Significant stakes in Alphamin Resources (TSX/JSE tin miner) and Alaris Holdings (JSE niche tech).
• Property: Real estate assets primarily in Poland (student housing/logistics) and South Africa.

Performance Trend (Interim June 2025 vs June 2024)

• NAV Growth: Expanding. NAV per share increased from $1.84 (Dec 2024) to $1.93 (June 2025). This was driven by the recovery in the Alphamin share price and a stronger basket of currencies against the USD.
• Profitability: Operating profit for the six months surged to $4.0 million (up from $1.8 million in the prior period), largely due to fair value gains in the listed portfolio.
• Portfolio Activity: The company has been actively deploying capital into renewable energy (Nuvo Energy) and managing its exposure to the volatile tin market via Alphamin.

Sector Context

• Macro Factor: The Small-Cap Discount. Globally, and particularly in the SA/Mauritius corridor, investment holding companies are trading at historical discounts to their underlying assets. The market is penalizing complexity and lack of liquidity. However, Tadvest's exposure to high-growth themes (Tin for electronics, Solar for SA energy crisis) provides fundamental support to its NAV.

Step 4: The Verdict

Bull Case (Buy Rationale) 50 cents for $1.00 of Assets. You are buying a portfolio of high-quality assets (profitable tin mining, solar energy, and property) at a ~53% discount to what they are worth. If management decides to unbundle the assets or delist (buy out minorities), the upside is over 100%. The "Hard Currency" hedge (USD reporting) is also attractive for SA-based investors.

Bear Case (Sell Rationale) The Liquidity Prison. The discount to NAV has persisted for years because the stock does not trade. There is no catalyst to close the gap unless management initiates a massive buyback or liquidation. If you buy this stock, your capital is effectively "dead" until a corporate event occurs. You cannot sell if you need the cash.

Fair Value Estimate USD 1.35 – USD 1.50

• Methodology: Applying a more reasonable 25% discount to NAV (typical for investment holding companies) rather than the current distressed 53% discount.

Final Rating: SPECULATIVE BUY Strictly for sophisticated, patient capital. The underlying assets are performing well, and the discount is irrational. However, do not touch this stock if you require liquidity. It is a long-term value play on the underlying NAV realization.