Avior Capital Markets - PPC Ltd (103H) PPC | Not out of the woods yet

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Avior Capital Markets

Gari Chigwedere

PPC | Not out of the woods yet

PPC's H1 '19 results showed the Group still faces some challenges on its road to recovery. A worse than expected slowdown in the Group's home market (South Africa) led to volumes declining. Higher fuel costs affected distribution costs. Positively, the Group's expansion outside of South Africa is beginning to show its worth with rest of Africa supporting earnings in the period. However, PPC is in a precarious position. The Group's most cash generative operations are generating cash in a country experiencing a currency crisis.

11/01/2019 13 EN

Underlying

PPC Ltd

PPC operates cement, lime, aggregates and readymix and other. Co.'s core activities comprised of: Exploration, which is involved in source and secure limestone deposits; Procurement, which is involved in other input materials, consumables and equipment; Mining, which is involved in extracting limestone and deliver to factory; Manufacturing, which is involved in converting limestone into cement/lime; Distribution, which is involved in facilitating transport of cement to customers in bulk and bag format; Sales, which is involved in executing customer orders; and Marketing, which is involved in building brand value.

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ZAE000170049 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.

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Analysts

Gari Chigwedere

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PPC | Not out of the woods yet

Increased risk weighs on PPC LTD., penalising its rating down to Slightly Negative

1 director bought

PPC | Invader Zim

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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