Reunert | Time to pull the trigger
Reunert has provided resistance through past challenging economic cycles through share buybacks, dividends and cost control measures. We believe recent changes in the political and economic landscape in South Africa present an opportunity for the group to grow volumes in local operations given its exposure to sectors such as infrastructure and ICT. Therefore, we expect to see growth in the next 12 to 36 months. However, we expect a weak set of H1 results following economic challenges and a stronger ZAR. The stronger ZAR depresses the value of Reunert's exports and lower translated profits from the offshore entities.Reunert is engaged in electrical engineering, information and communication technologies and defence and allied technologies. Co.'s Electrical Engineering segment encompasses the design, manufacture, installation, supply and maintenance of power, copper and optical fibre telecommunication cables, as well as switchgear and transformers. Co.'s Information, Communication and Technology segment provides communication and telecommunications applications as well as distributes office automation and telecommunications business systems products. Co.'s Defence and Allied segment focuses on tactical communication systems as well as designs and manufactures a range of defence related products.
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