Bidcorp – The State of the Restaurant Trade
Key message: We highlight restaurant booking data from Open Table. Second wave impacts are evident, with looming lockdowns (UK and Europe) likely to cause a significant fall in restaurant bookings.
Diversified Industrials – Post Results Wrap
Key message: An exercise in operational and financial gearing impacts, FY20 was severely impacted by Covid-19 lockdowns.
Auto Anemometer
https://chronux.co.za/wp-content/uploads/2020/10/Auto-Anemometer-Sep-20.pdf
Nampak – FY20 Trading Update
Key message: Debt covenants have been revised, removing the short-term liquidity risk. Nampak is in full defensive mode, aiming to strengthen the balance sheet in a competitive market.
Barloworld – Tongaat Hulett Starch Acquisition
Key message: Barloworld lost its MAC (Material Adverse Change) claim and has been forced to honour the original purchase agreement. We look at the impact on Barloworld’s financials.
Super Group – FY20 Results
Key message: Conservative balance sheet means no Covid-related capital issues, with acquisitions still a strong driver of growth. Offshore operations struggling.
Motus Holdings – FY20 Results
Key message: A good result and management positive in outlook. However, Motus is becoming more capital intensive to maintain vehicle sales – this will hurt returns. High rental car exposure in the Import and Distribution division remains a risk, in our opinion.
Bidvest – FY20 Results
Key message: Still somewhat noisy with non-trading items large (excl. Covid impacts). Large divisions Services and Freight look set for a good FY21.
KAP Industrial Holdings
Key message: Volatility in polymer margins continues to impact KAP, with average margins declining 15% YoY. We value KAP at what we consider to be the mid-range operating margin of 5% in the Chemical division.
Auto Anemometer
Key message: Vehicle sales have stabilised in June, July and August at 30-35% down on 2019 – this looks to be the new normal level for the remainder of the year.