Massmart Holdings (Hold, TP ZAR 137.70/share) FY 16A result first take...

MSM revenue grew by 7.7% y/y to ZAR 91.2bn in FY 16A (ACe: 7.7% y/y, Consensus: 8.0% y/y) and by 6.8% y/y in H2 16A (ACe: 6.8% y/y, consensus: 7.4%). Driven by strong revenue growth in Masswarehouse (28.8% of sales) of 11.0% y/y. Group GP grew in line with ACe by 7.8% y/y to ZAR 17.3bn (Consensus: 8.8% y/y), with a GP margin of 19.0% (ACe: 19.0%), +10bps higher y/y. EBIT grew by 15.5% y/y to ZAR 2.4bn (ACe and Consensus: 11.5% y/y), with EBIT margin expanding by 20bps y/y. This was aided by othe...