Report
Steph Erasmus

AECI | We can see clearly now, the rain is gone

The more favourable operating environment within South Africa should present opportunities for AECI's portfolio. Moreover, the focus will be on the integration of the new businesses, Schirm and Much Asphalt, into AECI and ensuring the delivery of market expectations. There have been promising technological developments within both the Mining Solutions and Water and Process segments. We expect AECI to deliver a strong performance in H1 '18f. The USDZAR exchange rate and uncertain weather patterns are two key factors that could have an impact on the performance.
Underlying
AECI Ltd.

AECI is an explosives and specialty chemicals company focused on providing products and services to customers in the mining, manufacturing and agricultural sectors. Co. has regional and international businesses in Africa, South East Asia and Australia. Other markets of interest are in Latin America. Co.'s segments include: Explosives, which comprised of the manufacture of commercial explosives and initiating systems for use by the mining industry; Specialty chemicals, which comprised of small- to medium-sized businesses manufacturing and marketing specialty chemicals to a range of industries; and Property, which comprised of the realization of the surplus land and property assets of Co.

Provider
Avior Capital Markets
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.

Analysts
Steph Erasmus

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