Report
Primaresearch
Anton Solomons
EUR 1700.64 For Business Accounts Only

Hudaco Industries (HDC) - Initiating coverage

We initiate coverage on Hudaco Industries Limited which continues to demonstrate its resilience in challenging market conditions.

 Market conditions:

  • Mining production is picking up buoyed by a rise in commodity prices, off recent lows.
  • Construction activity remains under pressure while plans for future activity appear to be picking up slowly and unevenly.
  • Manufacturing activity improved to above the long-term average but is impacted by consumer and business confidence.
  • Government policy uncertainty coupled with delays in the award of tenders also impacts business confidence and investment. While the uncertainty could be alleviated, we don’t expect progress over the short-term.

 We expect demand to show improvement led by the mining sector on the back of improving production as well as in some of the group’s businesses which are more defensive in nature (referring to the automotive and networking equipment businesses). 

23/08/2017 22 EN
Underlying
Hudaco Industries Ltd.
Hudaco Industries Ltd.

Hudaco Industries is engaged the import and distribution of engineering consumables, power tools and security, automotive and professional mobile radio communication products. The engineering consumables segment supplies engineering products such as bearings, hydraulics, pneumatics, filtration products, electrical cables, conveyor belting, pulleys, drives, and electric motors. The consumer-related products segment supplies automotive replacement parts; distributes imported maintenance free batteries, electronic security equipment, industrial power tools, marine engines, survey equipment and nuclear gauges; and provides telecommunications infrastructure and two-way radios applications.

See profile
ZAE000003273 Johannesburg Stock Exchange South Africa
Provider
Primaresearch
Primaresearch

Primaresearch is an independent, sell-side, equity research firm based in Cape Town, South Africa. We focus our research on consumer-facing companies as we have credible experience in this space. The name “primaresearch” invokes both high quality (prime) as well as “primary” research – being novel and offering value-add investment insights for our clients.

Our Vision

Our vision is to be the leading independent sell-side research firm in Africa. While we start with South Africa, we are looking into providing our clients with comprehensive, Africa-wide consumer-facing company and market research. Africa is poised to emerge as a significant consumer market, for which investors in South Africa and abroad will require thorough research and insights on. We aim to be the “go-to” research firm for these investors.

Our Culture

  • We foster an environment where our analysts can think creatively, to search beyond the obvious and look for interesting investment angles.
  • This is an environment where there is a free flow of ideas, discussions and debates.

We take a thematic approach in our research. This thematic approach highlights issues, risks and opportunities which investors may not have considered. Our goal is to bring “new” information to our clients’ attention, avoiding “maintenance” research which regurgitates existing information and talks to analyst models and numbers.

See profile
Analysts
Anton Solomons

Other Reports on these Companies
Read more reports
Other Reports from Primaresearch
Read more reports

ResearchPool Subscriptions

Get the most out of your insights

Get in touch