PPC – FY20 Trading Update
Key message: Evidence of PPC correcting management and corporate governance lapses are growing. Strong cement markets could significantly plug financial holes.
Cashbuild – FY20 Results
Key message: Solid results with strong cash generation notwithstanding the COVID impact. Strong sales growth post YE is providing FY21 with a good start – but pent-up demand levels (and supply disruptions) are distorting the real underlying demand levels.
Sephaku Holdings: Feedback from Management Meeting
The cement market has been very strong post-lockdown as blenders and imported volumes have declined.
Cashbuild Acquisition of The Building Company (TBC)
Key message: Cashbuild has made a large acquisition, but TBC does fill in some important gaps in the building supply market for Cashbuild.
Raubex – Trading Update for 1H FY21
Key message: Lockdown resulted in approx. R200m in standing costs, but Raubex has emerged with the balance sheet in a better position that at the end of Feb 2020. The recently released SIPS seem to favour roads projects to be the first to market.
PPC: FY21 Earnings Examined
Key message: We look at FY21 potential earnings as lockdowns ease. A loss at the HEPS level is likely, but debt covenants are not breached.
WBHO – Trading Statement
Key message: A big negative surprise in Australia…….again. An announcement that Probuild has had an unsolicited offer may signal a full retreat from Australia – and that is probably the right move.
Raubex FY20 Results
Key message: There is a relatively high probability that government will use SANRAL to kickstart infrastructure spending as a stimulus for the economy. Long overdue, this would boost the road construction sector.
Afrimat – FY20 Results
Key message: High iron ore prices boosted results, but the Demaneng mine is now producing at full production. Acquisition opportunities are available, with the announcement post results of an offer for Unicorn Capital Partners – with the target asset the Nkomati Anthracite Mine.
Afrimat – Initiation
Key message: Afrimat is exposed to the construction, industrial and commodity markets. With iron ore contributing approx. half of operating profit, earnings sensitivity is now weighted towards iron ore and exchange rate levels. An entrepreneurial management team promises growth by acquisition.