| Thursday 24 February 2022 Good morning Voornaam,
Alviva jumped 15.7% thanks to a spectacular set of numbers for the six months to December 2021. HEPS increased by between 125% and 145% to between 247 cents and 269 cents. Bearing in mind these are interim numbers, the closing share price of R19.66 still looks like decent value.
KAP Industrial closed 2.3% higher based on its earnings for the six months to December 2021. HEPS from continuing operations jumped 62% to 37.2 cents. Overall HEPS increased 82%. KAP doesn't declare interim dividends. The share price is up over 17% this year.
AECI's HEPS will be between 24% and 29% higher for the year ended December 2021. Despite supply chain challenges and increases in raw material prices, the group has almost returned to pre-pandemic levels of activity.
Merafe rallied nearly 15% after releasing a trading statement for the year ended December. HEPS has come in at around 67 cents per share. There's R972 million in cash on the balance sheet, of which R189 million has been ringfenced for rehabilitation obligations. Strip out the cash and you're left with a trailing Price/Earnings multiple of around 2x in round numbers! In mining companies, trailing multiples can be dangerous to rely on. Glencore (Merafe's partner) operates a tight ship though, so this price still looks attractive. The share price is up over 92% in the past year.
Imperial Logistics is finalising its results for the six months to December 2021. HEPS including discontinued operations is expected to drop by 30% to 43% due to factors including a R148 million once-off charge for the B-BBEE deal in July 2021. The company makes many adjustments to arrive at a "core earnings per share" number which is up between 13% and 23%. Imperial is under offer from DP World and the Competition Tribunal hearing was held on 18th February. The share price will react to any new s on the offer, not the underlying earnings.
Bidcorp has food services businesses across 35 countries, so it is a truly global company listed right here on the JSE. In the six months to December 2021, revenue increased 18.1% and trading profit jumped 52.9%. It gets better the further down you look, with HEPS up 75.3%. An interim dividend of 300 cents has been declared. The closing share price was R324.87.
Old Mutual released a trading statement for the year ended December 2021. Unsurprisingly when you remember the horrors of the comparative year, adjusted HEPS has more than doubled. HEPS measured in the usual way is up between 38% and 48%. The share price barely moved in response.
FirstRand's trading statement for the six months to December 2021 reflects an increase in HEPS of between 40% and 45%. The share price is up 7.4% this year as the banking recovery continues.
Oceana has appointed an interim CFO alongside the interim CEO. It's always great when a company has interim roles for both those positions (not). The FSCA is busy investigating whether any false, misleading or deceptive statements were made throughout the recent craziness at the company. I think it's almost a miracle that the share price is only down by around 12% over the past 90 days.
Capital & Counties Properties Plc released results for the year ended December 2021. Property values barely moved in the past year, but rental income increased and debt decreased, so the group is profitable and has declared a final dividend.
NEPI Rockcastle released results for the year ended December 2021. Distributable earnings per share fell 10.4% vs. the prior year, impacted by non-recurring litigation. Excluding that impact, recurring distributable earnings per share increased by 5.5%. All distributable earnings have bee n declared as a dividend, showing how much things have improved in this sector.
Blue Label Telecoms released results for the six months to November 2021. Gross profit margin improved significantly, helping to drive an increase in core HEPS from continuing operations of 22%. This excludes the net recoupment of R148 million achieved by the group after discovering a fraudulent scheme. The share price has only increased around 5% in the past year.
Sibanye-Stillwater has reached a new collective bargaining agreement with the union at its East Boulder mine in Montana in the United States. The effect of inflation is clear to see, with an annual average increase of 3.8% per year for the next 3 years. That's below current levels of inflation but significantly higher than inflation in recent years.
Today's feature articles are on WBHO's disastrous news from Australia, Curro's solid set of results and Adcock Ingram's earnings boost from the return of colds and flu.
The latest episode of Magic Markets saw us welcome back the Westbrooke Alternative Asset Management team to discuss liquidity in these types of investments and the ways in which companies structure their balance sheets. Listen to it here.
Have a busy day in the markets!
The Finance Ghost
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