Our opinion on the current state of MHB

Mahube (MHB) is an infrastructure holding company which reversed into Gaia and is involved in large-scale energy transport, water and sanitation projects. It is 41,35% owned by the Government Employees Pension Fund (GEPF). The company says, "Mahube Infrastructure owns five renewable energy assets – two wind farms and three solar PV (photovoltaic) farms – all of which were licensed by South Africa’s department of energy in the first round of bids of the renewable energy independent power producer procurement programme. The assets are all currently in operation, generating electricity, which they sell to Eskom in accordance with 20-year power purchase agreements". In its results for the six months to 31st August 2023 the company reported revenue up 38,8% and headline earnings per share (HEPS) of 47,8c compared with 29c in the previous period. The company said, "The dividend income earned by the Company during the period under review increased from R11.0 million to R23.0 million. This higher dividend resulted from receipt of a special dividend from two of the solar photovoltaic projects in which Mahube is invested, following the refinancing of these projects". The average value trading in the share is only R7 000 - which makes impractical for private investors.