Avior Capital Markets - Grindrod Ltd. (102Q) Grindrod,GRIN,GSH | When the tide goes out

Report

Avior Capital Markets

Mpho Mokotso

Grindrod,GRIN,GSH | When the tide goes out

Grindrod Shipping (GRIN) was spun out of from Grindrod (GND) and listed on the NASDAQ and JSE on the 18th and 19th of June 2018 respectively. In our view, this created an opportunity for investors to own the remaining underlying businesses of GND without the loss-making GRIN. Despite the spin off, GND has not rerated since June 2018, with GND's and GRIN's share prices declining 18% and 57% respectively since listing. In our view, the declines reflect muted earnings growth expectations in the next three years due to weakness in the industries that GND and GRIN are exposed to, with little chance of either division returning appropriate returns on capital. We initiate with a UNDERPERFORM rating for both GND and GRIN.

10/12/2018 34 EN

Underlying

Grindrod Ltd.

Grindrod is a shipping and freight logistics company. Co. operates three segments shipping, Freight Services, and Financial Services. Co.'s Freight Services segment provides freight logistics services. The division integrates Co.'s infrastructure and logistics and freight-agency services to move dry- and liquid-bulk commodities, vehicles and containers along import/export corridors. Co.'s shipping division operates a diversified fleet of 35.5 owned, chartered and joint-venture dry-bulk, liquid-bulk, container and bunker vessels across the world. Co.'s financial services segment provides investment, asset management, property finance and retail services.

See profile

ZAE000072328 Johannesburg Stock Exchange South Africa

Provider

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.

See profile

Analysts

Mpho Mokotso

Other Reports on these Companies

Avior Capital Markets

Industrials | MTA, MPT, SPG, HDC, GSH, GND | Earnings Update_Small to Medium Cap Industrials

During Q1'19, SA Industrials index declined by 3.9% yoy and were among the worst performing sectors on the Johannesburg Stock Exchange (JSE). The poor performance is an extension of last year's 17.5% yoy decline. The lack of growth opportunities has prompted companies to divest non-core or poor performing assets to strengthen balance sheets, realise shareholder value through divestures (e.g. enX) and resume an ordinary dividend (e.g. GND). In this note, we update our target price and recommendations for SPG, HDC, MPT, MTA, GND, GSH and ENX.

May 15, 2019 May 15, 2019 26 EN

SmartInsider

A director sold 30,000 shares at 15.185ZAR and

A director at Grindrod Limited sold 30,000 shares at 15.185ZAR and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names ...

Free Trial

October 16, 2017 October 16, 2017 1 EN

Tiger Brands | ESG | Pressed to execute

TBS receives a corporate governance score of 3.37 out of 5 (FY '18: 3.42) and is rated as â€˜good'. TBS receives an ESG risk score of 2.6 (FY '18: 2.6) which we consider moderate. As in FY '18, there were various changes to the Board which raises corporate governance concerns surrounding succession planning and the execution of strategies. Post year-end, L Mac Dougall retired as CEO of the Group. N Doyle has become the new CEO of the Group as of 1 Feb '20. We note the corporate governance concerns around the appointment of N Doyle given that he left the Group at an important juncture in FY...

February 7, 2020 February 7, 2020 15 EN

Ayan Ghosh

Ayan Ghosh

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

From an SA asset-allocation perspective, SA Bonds (ALBI +1.2%) outperformed cash (STEFI +0.6%) and equities (Capped SWIX -2.6%) in Jan â€˜20. The ZAR was the worst performing EM currency in Jan â€˜20, depreciating by 6.8% against the USD, as EM risk appetite declined, with the Coronavirus spreading further than the Sars virus, which began in 2002, likely to hit global growth. Our discussions with various corporates in China suggest that the Coronavirus will peak over the coming weeks and could take until Mar '20 to resolve. In USDs, MSCI SA (-8.8%) underperformed MSCI EM (-4.7%) in 2020, as ...

February 5, 2020 February 5, 2020 9 EN

Harry Botha

Harry Botha

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

Challenging SA economic conditions bring SA REITs credit health and banks' lending to the sector into the spotlight. Our analysis in this report provides greater detail on SA banks' exposure to commercial property and listed REITs. Our stress tests highlight that SA banks' lending to listed REITs (exposed to SA or offshore operations) has been conservative to date. REITs' equity capital and diversified portfolios support the property companies' credit health. While SA banks' near-term earnings growth prospects are geared to SA economic conditions, we highlight that valuations are undemandin...

January 28, 2020 January 28, 2020 36 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Grindrod,GRIN,GSH | When the tide goes out

Industrials | MTA, MPT, SPG, HDC, GSH, GND | Earnings Update_Small to Medium Cap Industrials

A director sold 30,000 shares at 15.185ZAR and

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

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe