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KIO.JSE Kumba Iron Ore. High Risk / High Reward.Kumba Iron Ore is currently Trading above Recent Lows. Single Commodity Tickers are always inherently a High Risk / High Reward Scenario. They are the current Market Price Takers. Should the China Stimulus result in Positive result's , not just hype, then I expect the Demand for Steel and Iron Ore to increase and hence this Tickers Stock Value. I've Charted the Recent Lows and Highs for your Perusal. As always, please get a few outside Expert's Advice before taking Trade or Investment Decisions. Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away. Regards Graham.
JSE:KIOLong
by hitchcoxg
Our opinion on the current state of MONDIPLC(MNP)Mondi (MNP) is a massive international paper and packaging company that started in South Africa but now operates in 30 countries and employs 26,000 people at about 100 sites. The company covers the full spectrum of packaging and is extremely professionally managed. Mondi owns and runs forests, produces wood pulp, paper, and plastic films for a wide variety of packaging solutions. The company has been impacted by developments in the Ukraine crisis. In an update on 28th February 2022, Mondi stated, "Mondi has operations in Russia, representing around 12% of the Group's revenue by location of production, including a high-margin, cost-competitive, integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar (Komi Republic)." Mondi decided to divest itself of all its Russian holdings, which had a net asset value (NAV) of 687 million euros as of 31st December 2021. On 1st July 2022, the company announced that it had completed the sale of its personal care business for 615 million euros. On 12th August 2022, Mondi announced that it had sold its Russian subsidiary for about R25 billion, which caused the share price to jump. In its results for the six months to 30th June 2024, the company reported revenue down 4% and earnings per share (EPS) down 30%. Mondi stated, "Our underlying EBITDA of €565 million in the first six months, although lower than the comparable period last year, reflected an encouraging performance, supported by improving market conditions resulting in stronger order books and higher sales volumes." In our view, Mondi is a blue-chip company, though it operates in a volatile sector due to the nature of the paper and packaging industry. Technically, the share was in a strong upward trend after March 2020, but the Ukraine situation in March 2022 derailed this trend. Since then, the share has been moving sideways, but there is now evidence of a new upward trend emerging. We expect this trend to continue as the global shift to online shopping increases demand for packaging materials. In March 2024, Mondi announced that it would acquire 54% of LSE-listed DS Smith Plc for GBP5.14 billion. On 9th October 2024, Mondi announced that it had acquired the packaging assets of Schumacher Packaging for 634 million euros.
JSE:MNP
by PDSnetSA
Our opinion on the current state of ALTRON-A(AEL)Allied Electronics Corp, or Altron (AEL), is an information and communications technology company that was founded by Bill Venter in 1965. Recently, the company has been re-focusing on its core business and has sold its 80% stake in Powertech and its 100% subsidiary, Altech UEC (a developer of set-top boxes). Powertech was also sold to a BEE consortium, and Altron is in the process of selling CBI Telecom Cables. Altron operates in six African countries, as well as the UK and Australia. The company said it had "...secured key wins in both the public and the private sector...", including the Gauteng Broadband Network phase 2 contract and FNB's data and analytics contract. Netstar won the eThekwini 3-year contract for vehicle tracking for 7,000 vehicles. Bytes, in the UK (which has now been unbundled and separately listed both in the UK and in an inward listing on the JSE), won a 5-year contract for Windows 10 from the NHS (UK). Altron aims to restructure its debt to reduce its interest bill and has resumed paying dividends. The company acquired Phoenix Software in the UK for R698 million. On 17th December 2020, the company announced the successful listing of its subsidiary Bytes Technology on the London Stock Exchange (LSE) at a price of GBP2.70. This unlocked considerable value into the hands of Altron shareholders but resulted in a "cliff" in the Altron share price chart. We believe that this share will continue to perform well going forward. In its results for the year to 29th February 2024, the company reported revenue up 8% and headline earnings per share (HEPS) up 36%. The company reduced debt by 44% to R313 million during the period. The company said, "Increased cash generation supported by a strong balance sheet allowed us to increase our final dividend per share by 74%." In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would rise by between 171% and 189%. The company said, "...positive momentum has continued into the 2025 financial year ("FY25"), leading to a stronger year-to-date performance in comparison to the Comparative Period, which was negatively impacted by provisions and impairments raised." Technically, the share was moving sideways between 750c and 1330c from December 2020 until November 2023. It has since entered a new upward trend and has been rising strongly. It was added to the Winning Shares List on 15th November 2023 at 949c and has since risen to 1799c.
JSE:AEL
by PDSnetSA
Our opinion on the current state of THARISA(THA)Tharisa (THA) is a mining company that mines and beneficiates platinum group metals (PGMs) and chrome. The company is listed in London and on the JSE. The Tharisa mine, located on the south-west limb of the Bushveld Igneous Complex (BIC), is an open pit operation with an estimated life of 17 years. The company owns a subsidiary, Arxo Metals, which beneficiates chrome to produce high-grade chrome concentrates. The company is planning to expand into the Great Dyke area of Zimbabwe. In our view, this is one of the best mining investments on the JSE, with a cost of production well below current metals prices and some good options for expansion. The company has been involved in the Vulcan Plant, which will improve chrome recovery to 82% from 65% at a cost of $54.2m. The target is to reach 200,000 ounces of PGMs (platinum group metals) and 2 million tons of chrome ore production using proprietary technology. The open pit operation is relatively low cost and does not have the problems associated with underground operations. The company is planning to build a 5MW furnace that will enable it to produce iron alloys rich in platinum group metals, which would sell for a far better price. On 5th October 2021, the company announced the cold commissioning of its Vulcan chrome beneficiation plant, which is expected to increase chrome recoveries by 20%. On 4th February 2022, the company announced that it had signed an agreement to implement a solar farm of more than 40 megawatts. On 27th March 2023, the company announced that it had raised $130m (about R2.3bn) in finance from ABSA and Soc Gen. In its results for the year to 30th September 2023, the company reported PGM production down 19.3% and revenue down 5.3%. Headline earnings per share (HEPS) fell 31.1%. The company said, "The decline in reef mined primarily emanates from access restrictions to the open pit due to limitations on mining activities in close proximity to the nearby community, adverse weather conditions experienced as well as the processing of suboptimal reef horizons which were supplemented by purchased ROM ore to maintain plant throughput." In a production update for the year to 30th September 2024, the company reported PGM production of 145,100 ounces compared with 144,700 ounces in the previous year. Chrome production was 1.7 million tons compared with 1.58 million tons in the previous year. This was the company's highest-ever chrome production. The company said, "In our efforts to reduce our carbon emissions and secure energy independence, we entered into a 15-year agreement with Etana Energy, who will be providing up to 44% of the Tharisa Mine's electricity demand via wheeled renewable energy." Technically, the share is well traded, with over R2.6m worth of shares changing hands on average each day. The share has been falling since July 2024 due to declining commodity prices. The share remains a risky commodity counter dependent on the international prices of the commodities which it produces.
JSE:THA
by PDSnetSA
UPDATE ACL Profit target reached at R2.22Since the price broke abbove the W Formation and the Price went above above 20 and 200 THe momentum and buying just took off at an alarming rate. So within ONE week, the price shot up to R2.21 which was even a surprise to me with the speed of the analysis. So what now? Now, it's in a dangerous area. The trend is so steep it can come down just as fast. If the buyers have conviction they will drive the price sideways first before the next buy up. But we'l have to give it some time before we decide.
JSE:ACLLong
by Timonrosso
Our opinion on the current state of INSIMBI(ISB)Insimbi (ISB) is a group that manufactures and supplies specialist products to the industrial sector. They source, buy, package, and process ferrous and non-ferrous alloys, refractory and foundry materials, plastic blow-moulding, and injection moulding. They recycle metal alloys and provide technical support to users of their products. In its results for the year to 29th February 2024, the company reported revenue down 2% and headline earnings per share (HEPS) down 54%. The company said, "Prices for most of our commodities declined during the year. The impact on Insimbi's export and local revenue was partially mitigated by the US$ base pricing of these commodities and an exchange rate that worked in our favour." In a trading statement for the six months to 31st August 2024, the company estimated that it would make a headline loss of between 1.1c and 1.3c compared with a profit of 15.46c in the previous period. Technically, the share was in an upward trend until June 2018 but then fell to a low of 50c on 18th December 2020. After that, it rose to a high of 139c in June 2023 before beginning a new downward trend. In our view, this company will benefit directly from any recovery of the South African economy, but it remains a risky commodity share. Its value traded is an average of about R34,000 per day, making it dangerous for private investors. So it is a thinly traded penny stock producing commodities, which is about as risky as you can get.
JSE:ISB
by PDSnetSA
Our opinion on the current state of AFRIMAT(AFT)Afrimat (AFT) is an open-pit mining company that supplies composites, construction materials, and other commodities to a range of industries in Southern Africa. Until the end of 2015, Afrimat was one of the best-performing shares on the JSE. The share broke up out of a 3-year sideways pattern, which included the COVID-19 crisis. It rose to a peak of R76 on 6th April 2022, but has been declining since then as the commodities cycle came to an end. The acquisition of the Demaneng iron mine in the Northern Cape has insulated Afrimat against the difficulties in the construction industry. The company is also looking to diversify into other base minerals like manganese, chrome, and coal. The CEO, Andries van Heerden, said that Afrimat was known for its success in acquisitions and was still evaluating potential acquisitions. On 26th May 2020, the company announced that it had submitted a non-binding expression of interest to Unicorn Capital Partners (in which it already owns 27%), which runs an anthracite mine. The offer is for 1 Afrimat share for 280 Unicorn shares. The company benefited from rising iron ore prices due to supply constraints in Brazil and rising demand from China. On 17th August 2020, the company announced that it had bought a mining exploration company (Coza Mining) involved in looking for iron and manganese in the Northern Cape for R300m. On 21st May 2021, the company announced the purchase of a manganese mine, Gravenhage, in the Kalahari Manganese Field, 50km from Hotazel for $45m plus R15m. On 10th December 2021, the company announced the acquisition of Glenover Phosphate for R550m. On 20th March 2022, the company announced that its listing had been moved from Basic Materials Construction and Materials to the General Mining sector, which better reflected its business. On 20th June 2023, the company announced that it had acquired 100% of construction materials company, Lafarge, for $6m, less any amounts categorised as leakage under the Share Purchase Agreement. In its results for the year to 29th February 2024, the company reported revenue up 23.9% and headline earnings per share (HEPS) up 24%. The company said, "Operating profit increased by 19.8% to total R1.2 billion (2023: R961.6 million), delivering an operating profit margin for the Group of 18.9%. The diversified position Afrimat has adopted, together with the efficiency projects that are in place, helped the Group to counter impactful economic headwinds." In a pre-close briefing on the 6th of August 2024, the company said, "In the first quarter (March, April, May) ("Q1") the bulk commodity market was lacklustre. By the second quarter (June, July and the first week of August) ("Q2"), volume increases were evident, as domestic customers with furnaces started up again, and tender activity increased in road, rail and small infrastructure projects." In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would fall by between 75% and 85%. Like all commodity companies, Afrimat's shares have declined with the drop in commodity prices, but this company is well diversified and has very low debt levels, making it good value. On 10th April 2024, the company announced that it had received approval from the Competition Commission for its acquisition of 100% of Lafarge. On a P:E of 11.48, it seems reasonably priced to us. Technically, the share is in a volatile upward trend, which we believe will continue.
JSE:AFT
by PDSnetSA
Our opinion on the current state of DRAGLOBAL(DRA)DRA Global describes itself as a "...multi-disciplinary engineering, project management and operations management group predominantly focused on the mining and minerals resources sector." It is listed on both the Australian Stock Exchange (ASX) and the JSE. It has its headquarters in Perth, Australia, and operates through 20 offices in Asia-Pacific, North and South America, Europe, Middle East, and Africa, with more than 4,500 staff. The company has expertise in mining, minerals, metals processing, and related infrastructure. The company restructured its South African operation so that it now has a BBBEE ownership of 51%. In its results for the year to 31st December 2023, the company reported revenue down 1% and an after-tax profit of R19.7 million. The tangible net asset value (NAV) rose to 344c from 317c. The company had net cash of R127.7 million. Headline earnings per share (HEPS) was 42c, up from a loss of 2c in the previous year. The company said, "The Group delivered a strong FY23 statutory EBIT outcome of $47.9 million, up from $1.5 million in the previous reporting period." The company listed on the JSE on 9th July 2021 and has traded sporadically since then, with many days where there was no volume. The average value traded per day is about R40,000, which makes it barely practical for investment by private investors. On 9th October 2024, the company announced its intention to delist from both the ASX and the JSE once shareholder approvals had been obtained.
JSE:DRA
by PDSnetSA
Our opinion on the current state of BALWIN(BWN)Balwin Properties (BWN) is a developer of secure sectional title properties in South Africa. The company is now turning its attention to renting out some of the properties that it develops to improve its income. The company reports strong demand for its units and is also moving into supplying solar power and internet fibre. The share was listed 5 years ago at R10 per share but trades today for 270c. Obviously, the property development market is a function of consumers' disposable income and the state of the economy. The last three years have been very tough for consumers, and the economy has been in a full-blown recession. In our view, the move to rental is a good one as it will build up a passive income which can be used to meet fixed overheads and contribute to profits. Balwin owns 25% of Balwin Rental, which has the right to buy as many as 4,544 units developed by Balwin. This should help to stabilize the company's income. Eventually, it is expected that Balwin Rentals will be listed. On 4th October 2020, the company launched its Mooikloof Mega City construction project as a R44bn public/private partnership aimed at middle-income South Africans who earn between R3,500 and R22,000 a month (known as the "gap housing market"). This caused the share to rise by 13%. In its results for the year to 29th February 2024, the company reported revenue down 29% and headline earnings per share (HEPS) down 48%. The company's net asset value (NAV) increased 4% to 858.49c per share. The company said, "The annuity business portfolio experienced strong growth off a low base and increased its revenue to R132.5 million, contributing 5.6% (2023: 2.3%) to the total group revenue." The group ended the period with a loan-to-value (LTV) of 40.5%. In a voluntary update on 24th July 2024, the company stated its intention to increase its rental portfolio up to 7,300 units over the next 8 to 10 years. This is seen as complementing its build capacity of 2,000 to 3,000 units per annum. In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would fall by between 54% and 59%. The company said, "Activity in the residential property sector remained under significant pressure during the interim period owing predominantly to the prolonged high-interest rate environment." Technically, the share has been in a long-term downward trend, and we advise waiting for it to break up through its downward trendline before investigating further. That appears to be in the process of happening (27-9-24). We believe it will recover as the economy recovers. It is trading for 25% of its net asset value (NAV) - which looks really cheap.
JSE:BWN
by PDSnetSA
Our opinion on the current state of JUBILEE(JBL)Here is the text with paragraphs added: Jubilee Metals Group (JBL) is a diversified metals recovery company that re-processes mine waste and surface materials. It is listed both on the London AIM market and on the JSE's Alt-X. It has operations in South Africa, the UK, Madagascar, and Australia, and it is involved in a joint venture in Zambia to produce lead, zinc, and vanadium. The company primarily produces platinum group metals (PGM) and chrome, and its primary asset is a 63% stake in the Tjate project, which is assessed to include the world's largest undeveloped block of platinum ore, with an estimated potential of 65 million ounces on the Western Limb of the Bushveld Igneous Complex. However, in recent years, the company has "...pivoted towards a smelting and beneficiation strategy as a cashflow survival strategy." Jubilee is currently spending about R154 million to consolidate its PGM retreatment business by buying a reprocessing plant and some dumps. The R154 million is being used to buy a chrome processing operation and 1.8 million tons of tailings from PlatCro Minerals. It is a low-cost producer but subject to the vagaries of the platinum and base metals markets. In its results for the year to 30th June 2024, the company reported revenue up 20.2% and chrome concentrate production up 20%. 6E PGM production decreased by 14.2%, and copper production was up 17.1%. The company said, "Group EBITDA decreased by 7.1% to US$27.7 million (FY2023: US$29.8 million), supported by increased chrome production helping partially offset the impact of the sharp decline in PGM EBITDA." In our view, this share is probably one of the better options in the mining sector but remains highly volatile and risky. We suggest waiting for a break up through the share's long-term downward trendline. On 7th October 2024, the company announced that it had increased its stake in project "G" to 65% and that it had secured an additional 2 megawatts of power from an IPP.
JSE:JBL
by PDSnetSA
Our opinion on the current state of DATATEC(DTC)Here is the text with paragraphs added: Datatec (DTC) is an international IT and telecommunications company operating in more than fifty countries. It operates in the United States, South America, Europe, Africa, the Middle East, and Asia. Its business is divided into three main divisions - technology distribution through Westcon International, integration and managed services through Logicalis, and consulting and financial services through Datatec Financial Services and Analysys Mason. The CEO, Jens Montanana, is a 10% shareholder. In its results for the year to 29th February 2024, the company reported revenue up 6.1% and headline earnings per share (HEPS) of 14.2c (US) compared with a loss of 9.3c in the previous period. The company said, "Westcon International continues on its growth trajectory, delivering an exceptional performance in FY24. Logicalis International also performed well, however, Logicalis Latin America faced numerous challenges in Argentina and Brazil, which impacted its financial performance." In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would be between 58.7% and 74.6% higher than in the previous period. The company said, "Westcon continued its profit growth trajectory and Logicalis International strongly increased profitability." Technically, the share fell during the COVID-19 pandemic to around 2067c but then rallied to around 4119c. Then the Ukraine crisis took the share down to 3100c on 8th March 2022, but since then, although volatile, it has been recovering. We believe it will continue to perform, especially as the use of artificial intelligence (AI) becomes more widespread.
JSE:DTC
by PDSnetSA
Our opinion on the current state of EOHHere is the text with paragraphs added: Enterprise Outsourcing Holdings (EOH) was Africa's largest information technology company with involvement in almost every aspect of computer applications. At one point, the company had 11,000 staff members, but that has now been reduced to 6,151. It was, until August 2015, the darling of the JSE because it had a long track record of steadily improving profits. It made a peak of R178 per share at a P:E of 35. An unsuccessful attempt to exceed that high (i.e., a double top) came a year later in September 2016, and since then, the share has fallen steadily to reach a low of 146c in February 2023. This fall was initially accompanied by allegations that the company was involved in and owed its success to state capture in collaboration with the Guptas. The CEO and founder, Asher Bohbot, resigned in May of 2017 and handed over to Zunaid Mayet, who has now handed over to Stephen van Coller. Usually, when a company is run by a strong charismatic leader and that leader (like Bohbot) resigns, it is time to sell the share. The company's 200 subsidiaries have been consolidated into three divisions with centralized debt collection and procurement. On 6th July 2021, *Business Day* reported that EOH could possibly be "blacklisted" by the government as a result of its past tender frauds. This would obviously be very negative for the company. On 11th November 2022, the company announced a R500m rights issue and a R100m private placement mainly to reduce debt, and on 13th February 2023, it announced that the offer had been 135.8% oversubscribed. In its results for the six months to 31st January 2024, the company reported revenue of R3.1bn, slightly down on the previous period's R3.2bn. The company made a headline loss per share of 11c compared with a loss of 17c in the previous period. The company said, "Operating costs continue to be a core focus, and EOH is on track to eliminate at least R50 million from the FY2023 cost base, on an annualized basis, as part of the efficiency strategy. The Group's interest charge decreased to R68 million (HY2024) from R102 million (HY2023), as a result of the R600 million capital raise and the refinancing of consortium facilities with a single bank." In a trading statement for the year to 31st July 2024, the company estimated that it would make a headline loss of between 0.10c and 0.30c compared to a loss of 21c in the previous year. On 31st May 2024, the company announced the resignation of various directors and the appointment of Marius de la Rey as interim CEO. Technically, the share made a "double bottom" in April and May of 2024, after which it began a new upward trend. We believe that it will continue to rise.
JSE:EOH
by PDSnetSA
Our opinion on the current state of METAIR(MTA)Metair (MTA) produces energy solutions (batteries) and components for the vehicle manufacturing business. It has operations in Africa and in various European and Middle East countries. The company's energy storage business is located in Turkey in an operation called "Mutlu". The business it is in has the prospect of growing rapidly as electric motor vehicles replace those powered by internal combustion engines. The company has announced its intention to split into its European acid battery business and its automotive components business in South Africa. In a report on the impact of the floods in Natal, the company said, "Whilst the impact on Metair’s facilities was minimal and operations had promptly returned to normal, a major Original Equipment Manufacturer (OEM) customer of the Group advised that it suffered significant damage to its plant with production suspended for clean-up operations and assessments to be carried out." The company received a R150m insurance payout for business interruption from the Natal floods. In its results for the six months to 30th June 2024, the company reported revenue up 4% and a headline loss of 3c per share compared with a profit of 41c in the previous period. The company's net asset value (NAV) increased 12% to 2923c per share. The company said, "The reporting period required ongoing agility within Metair’s operating markets and mitigating actions to address the negative impacts of lower South African Original Equipment Manufacturers’ (“OEMs”) customer demand and volume variability." The share has been falling since October 2021. We recommend waiting for a break up through its downward trendline before investigating further. The share has been rising since June 2024, but has yet to break up through its long-term downward trendline. On 6th December 2023, the company announced that its CEO, Sjoerd Douwenga, would resign with effect from 31st January 2024 due to ill health. On 16th September 2024, the company announced that it had sold its entire shareholding in Mutlu, its Turkish operation, for R1,95bn. The news caused the share price to jump. On 5th October 2024, the company announced that it had acquired Autozone from the business rescuers for up to R290m in cash.
JSE:MTA
by PDSnetSA
THA.JSE Tharisa PLC Range Bound?Tharisa PLC Seems Range Bound. Buy now should you wish to enter this one. However is not that liquid at the moment. Needs to push past R22 to gain momentum. Analysis's Targets are high, and I'm sceptical at the moment, but these are for a 1 year out time-frame (+100%). The Price for Chrome or more China Demand could be a catalyst IMO. As always, please get a few outside Expert's Advice before taking Trade or Investment Decisions. Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away. Regards Graham.
JSE:THALong
by hitchcoxg
SSW - Price action vs commodity price trendsCommodity prices increased on upwards trend during the year, compared to SSW which declined due to reporting results of the last Q2. Even though commodity prices are up, the USD ZAR also plays a role here and the Rand was strong the last quarter which would impact the groups profitability in this Q. The rand is easing against the USD with the interest rate cuts going on and overall global uncertainty of the middle east. If you can cancel out the global noise then this stock is something to keep an eye on. (This is my stockpick notes - not financial advise)
JSE:SSWLong
by John2506
SOL.JSE Sasol Prints a Reverse Cup & Handle?Sasol Prints a Reverse Cup & Handle Pattern which could be Bullish. The Price pattern might retrace to form an Inverse Head and Shoulders. This Ticker is under extreme Duress due to many factors as we all know, so needs to be Traded and not held IMO. Use a tight Stop-loss if in. As always, please get a few outside Expert's Advice before taking Trade or Investment Decisions. Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away. Regards Graham.
JSE:SOLLong
by hitchcoxg
Our opinion on the current state of BALWIN(BWN)Balwin Properties (BWN) is a South African developer of secure sectional title properties. Recently, the company has shifted some focus towards renting out the properties it develops to diversify and enhance its income streams. Despite strong demand for its units, the company has expanded into providing solar power and internet fibre solutions. When listed five years ago at R10 per share, Balwin’s share price has since dropped to 270c. The property development market is heavily influenced by the state of the economy and consumers' disposable income, both of which have been under strain, particularly during the economic recession of the last three years. Balwin’s decision to increase its rental portfolio is viewed positively, as this will build passive income streams, which can help cover fixed overheads and contribute to profitability. The company owns 25% of Balwin Rental, which holds the right to acquire as many as 4,544 units developed by Balwin, a move that should help stabilize income. There are expectations that Balwin Rentals will eventually be listed separately. On 4th October 2020, Balwin launched its Mooikloof Mega City construction project, a R44 billion public-private partnership aimed at middle-income South Africans earning between R3,500 and R22,000 per month, often referred to as the "gap housing market." This caused the share price to jump by 13%. In its results for the year ending 29th February 2024, Balwin reported a 29% drop in revenue and a 48% decline in headline earnings per share (HEPS). Despite the challenges, the company’s net asset value (NAV) increased by 4% to 858.49c per share. The company noted that its annuity business portfolio saw strong growth, increasing its revenue to R132.5 million, which contributed 5.6% of the total group revenue, up from 2.3% in 2023. The group finished the period with a loan-to-value (LTV) ratio of 40.5%. In a voluntary update on 24th July 2024, Balwin announced plans to expand its rental portfolio to 7,300 units over the next 8 to 10 years, complementing its build capacity of 2,000 to 3,000 units per annum. However, in a trading statement for the six months ending 31st August 2024, the company estimated a HEPS decline of between 54% and 59%, citing ongoing pressure in the residential property sector due to high interest rates. Technically, Balwin’s share has been in a long-term downward trend. We recommend waiting for a break above this downward trendline before considering further investment. Despite its current challenges, the share is trading at 25% of its net asset value (NAV), which suggests it is significantly undervalued and could present a strong recovery opportunity as the broader economy improves.
JSE:BWN
by PDSnetSA