reports
- Ruhan du Plessis
Reunert | Cash is king in a crisis
Low GDFI spend in SA reduced the cable business's (electrical engineering - EE) operating profit by 27%. Given no current signs of a pickup in state/municipal spend, we cut our earnings forecasts by 10% to 16% over the next three years. However, the Group has approximately a quarter of its market cap in cash. We expect Reunert to cautiously start deploying capital through select ICT acquisitions (strategic fit at right price) and renewable energy development (improving regulatory environment)...
1 director sold
A director at Reunert Limited sold 33,400 shares at 67.000ZAR and the significance rating of the trade was 61/100. 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...
- Ruhan Du Plessis
Reunert | No power for growth
Reunert has navigated a decade of declining cabling demand with HEPS flat since FY'08, through cost containment and protecting its balance sheet. In our view, Reunert requires an improvement in power infrastructure spend in South Africa to grow HEPS above inflation. Eskom is no longer a top 10 customer for Reunert. Cabling production declined from c.45k tons p.a. in FY'08 to 30k tons in FY'19. Cabling contributes c.50% of Group revenue despite operating at c.67% of FY'08 production (tons). Reune...
- Ruhan Du Plessis
Reunert | Outperforming an underperforming market
Reunert delivered weak FY'18 results with normalised HEPS down 1% y/y. Strong exports in Applied Electronics, supported by a weaker ZAR, and a robust performance in ICT offset slowing demand for cables. Unusually, Reunert consumed more cash with net cash balances declining 72% y/y to ZAR352m (FY'17: -27%) as liquidity issues in Zambia and large contracts in Applied Electronics temporarily increased working capital 37% or ZAR491m y/y in FY'18. We expect acquisitions and share buybacks to stop ...
- Kevin Mattison
- Ruhan Du Plessis
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 st...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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