Cashbuild
Key message: DIY products have experienced a remarkable uplift over the last six months, with activity levels holding up strongly over December.
Diversified Industrials
Key message: Strong outperformance over the last six months, but in general still down from a year ago. The big movers were where balance sheet concerns drove down valuations – but we would be switching to the less-speculative better managed companies now. Gains in the second leg of a cyclical recovery are the domain of higher quality companies.
PPC – Stuff You Should Know
Key message: On a peer group or replacement cost comparison, PPC is very cheap. PPC is trading on an EV/tonne of USD51/tonne, with replacement costs over USD200/tonne. Global peers trade currently at USD85-260/tonne.
PPC – 1H FY21 Results
Key message: Apparent progress in the DRC debt restructuring and a boost to earnings from strong cement markets is reducing the probability of PPC having to raise cash to meet lender de-gearing requirements.
WBHO – FY20 Results
Key message: A significant loss in Australia clouds a reasonable performance in a weak market.
PPC – Trading Update
Key message: Strong cement sales in all regions are a welcome respite for PPC – and will help in the capital restructuring.
Raubex- FY21 Interim Results
Key message: Comfortably surviving the Covid-19 lockdowns, increased SANRAL activity bodes well for Raubex. A large building order book shows the growing diversity of the group.
Afrimat – FY21 Interim Results
Key message: Two new acquisitions – and the cashflow from Demaneng will likely cover the acquisition costs within 2 years.
WBHO – Further Trading Statement
Key message: Losses increase in Australia by an extra R200m to R1.2bn, but at least through a settlement that caps project costs.
PPC – FY20 Results
Key message: Competent management is back in the saddle, after years of weak strategic and financial oversight. While the balance sheet is still strained and the cement market only in the early stages of a recovery, PPC at least has a firm hand on the tiller.