Avior Capital Markets - KAP Industrial Holdings Ltd (10BO) KAP Industrial | Concerns overplayed

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Avior Capital Markets

KAP Industrial | Concerns overplayed

KAP will report FY'18 results on 14 August 2018. We expect H2'18 to be weaker than our previous forecast. However, we are cautiously optimistic regarding the forward outlook. Delivering operationally and financially on the Hosaf expansion is key to real earnings growth in FY'19.

There is no urgency for SNH to sell its remaining KAP shareholding. Therefore, we believe the resolution of the remaining 25.9% KAP share overhang from Steinhoff (SNH) will take longer to materialise. Slower SA economic growth and lower investor confidence will make FY'19 a tougher environment for KAP management to deliver earnings growth.

15/08/2018 9 EN

Underlying

KAP Industrial Holdings Ltd

Kap Industrial Holdings is an investment company. Through its subsidiaries and joint ventures, Co. is engaged in the business of manufacturing of canned and other meals, maize milling, leather products, footwear, bottle resin, automotive products and towelling products. Co. operates within two segments: industrial and consumer .n

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ZAE000171963 Johannesburg Stock Exchange South Africa

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Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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KAP Industrial | Concerns overplayed

KAP INDUSTRIAL reduced its risk exposure resulting in an upgrade to Slightly Positive

1 director sold

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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