Report

ENX | Preparing for a facelift

enX released disappointing FY' 18 results. HEPS increased 4% yoy to 188.5cps despite the 12-month inclusion of Eqstra Fleet Management and Logistics (EFML), and enX Industrial Equipment (EIE) vs a 10-month inclusion in the base. Operational weakness was concerning in EIE and Petrochemicals. We have reduced our earnings estimates. We downgrade to a MARKETPERFORM rating.
Underlying
ENX Group

enX Group Limited is a South Africa-based industrial energy and supplies company. The Company provides power, fuel and chemical products and in some segments, locally manufactured capital and consumable goods and support services, to a range of economic sectors in South Africa and sub-Saharan Africa. The Company's segments include power, Petrochemicals and Wood. The Power segment includes manufacture, supply, installation and maintenance of diesel generators and related components; distribution of industrial engines, marine engines and components, and rental of temporary power in the form of diesel generators. The Petrochemicals segment includes production and marketing of oil lubricants, and distribution of plastics, polymers, rubber and specialty chemicals. The Wood segment encompasses the distribution of woodworking equipment, tooling and edging and provision of associated services, such as blade sharpening and equipment maintenance.

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
Mpho Mokotso

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