Report
Primaresearch
Anton Solomons
EUR 86.16 For Business Accounts Only

Novus Holdings - Overvalued

We view Novus Holdings as overvalued at current levels. The print industry appears to be in a consolidation phase and for Novus, the impact on volumes, prices and operations has already contributed to margin pressure and some mothballing.

We expect these trends to continue over the forecast period. We see the use of the internet to consume media as a threat to print media consumption.

12/02/2018 11 EN
Underlying
Novus Holdings Ltd
Novus Holdings Ltd

Novus Holdings Limited is engaged in commercial printing and manufacturing operations. The Company's principal operations are in print media, printing on packaging and the manufacture of tissue paper. Its segments include Printing and Other. The Printing segment is engaged in the printing of books, magazines, newspapers and related products. The Other segment includes the Labels division, which prints flexible labels, and Paarl Tissue Proprietary Limited, which manufactures tissue paper. The Company uses publication gravure, heatset Web offset, sheet-fed, specialized book, coldset Web offset, digital and ultraviolet (UV) flexographic technology in its printing processes. The Company offers printing services for various product categories, including magazines, retail inserts and catalogues, newspapers, security products, books and directories, labels and other flexible packaging products, and tissue products. Its activities are conducted primarily in South Africa.

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ZAE000202149 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.

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Analysts
Anton Solomons

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