Shares
 
FAQs

Visit our FAQ page to find the answers to the most commonly asked questions, including how to create an account, explaining ETFs, and providing useful links, forms, and tables.

FAQs
Shares

Start investing in South African shares the smart way. Discover ThinkTrader today.

Start Investing
Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn More
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
About ThinkMarkets
 
Liverpool FC

ThinkMarkets is the Official Global Trading Partner of Liverpool FC

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
Security of Funds

Security of your funds is our number one priority. We safeguard our Client funds in top tier banks.

Learn more
ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Create account

South African Equities Earnings Review: 12 - 16 September 2022

Lesego Mthombothi Lesego Mthombothi 21/09/2022
South African Equities Earnings Review: 12 - 16 September 2022 South African Equities Earnings Review: 12 - 16 September 2022
South African Equities Earnings Review: 12 - 16 September 2022 Lesego Mthombothi
13 September 2022

Libstar (LBR) - Reviewed Interim Results for the Six-Month Period Ended 30 June 2022

Consensus Recommendation          BUY


 
Highlights Actual    Change
Revenue R5.2 billion 9.6%
Normalised EBITDA R493 million 4.6%
Normalised HEPS           35.6 cents 14.1%
DPS               nil -
Valuation   Price to Earnings      Dividend Yield
Libstar     8.6x         4.2%
FTSE/JSE Food Producers 13.0x         5.6%

 Food and private label food producer, Libstar, delivered a resilient performance for the first six months of the new financial year. Total Group revenue growth was driven by strong revenue growth in its Retail & Wholesale (+8.1%), Food Service (+23.9%) and Industrial & Contract Manufacturing (+18.3%) divisions while slightly offset by revenue contraction of 10.9% in the Export division which was negatively impacted by supply chain issues and a volatile Rand. Revenue and normalised EBITDA for its Perishables category (54% of Group revenue) expanded by 14.6% and 28% respectively to R2.8 billion and R254 million, delivering volume growth of 6.3% driven by strong volume sales growth of pre-packed hard cheese. Revenue for its Groceries category (32%) expanded marginally by 2.2% to R1.7 billion delivering volume growth of 8.3% driven by strong volume growth of its sauces, vinegars, and other condiments, while normalised EBITDA contracted by 17.7% to R196 million. Revenue and normalised EBITDA for its Snacks & Confectionery category (5%) increased by 11.6% and 23.2% respectively, while revenue and normalised EBITDA for its Baking & Baking Aids category (9%) increased by 8.6% and -6.1% respectively. In line with company policy, no interim dividend was declared. Libstar is currently trading at a 34% discount to its peers from a price-earnings perspective.

African Rainbow Capital Investments (AIL) - Full year financial results for the twelve-month period to 30 June 2022

Consensus Recommendation          N/A
 
Highlights Actual Change
Portfolio Value R13.7 billion   11.3%
INAV Per Share R10.06 14.7%
DPS nil -
Valuation Price to Earnings Dividend Yield
ARC Investments 5.9x -
FTSE/JSE Closed End Investments 6x -

The investment holding company delivered strong performances in its underlying holdings as the intrinsic portfolio and cash in the ARC Fund, its only asset, increased by 11.3% and 179.9% respectively. The ARC Fund is invested in 52 companies spanning telecommunications, mining, construction, agriculture, financial services, and other sectors with its top 4 investments being in Rain Telecommunications, Tymebank, Kropz Group and Alexander Forbes. The Fund’s interest in Rain increased by 9.7% to R3.6 billion, as the company benefited from acquired spectrum and is doing well on the sale of its 4G and 5G products. Tymebank now has 5 million customers, 36 months after launching. It also raised $150 million during the year. One of the Fund’s mining interests, Kropz Group’s fund value increased by 7.5% to R1.03 billion. Alexander Forbes’s fund value increased by 7.1% to R963 million following a R121 investment and a fair value gain of R75 million due to the increased share price. The company announced that until it makes substantial exits, it won’t be declaring dividends. The share currently trades at a 40% discount to its intrinsic NAV per share. ARC is currently trading at a 2% discount to its peers from a price-earnings perspective.

14 September 2022

GrowthPoint (GRT) – (Audited Results for the Year Ended 30 June 2022)

Consensus Recommendation          BUY


 
Highlights Actual Change
Portfolio Assets R160.8 billion 5.2%
DIPS 155.6 cents 5.1%
DPS 128.4 cents 8.4%
Valuation Price to Earnings Dividend Yield
Growthpoint 6.1x 10%
FTSE/JSE REITS 7x 10%

South Africa’s largest property company is recovering strongly post the challenging period marked by the covid-19 pandemic. Although revenue contracted marginally by 0.6%, vacancies and rental discounts decreased over the period. Retail and industrial vacancies decreased to 5.5% and 5.7% respectively (FY2021: 6.2% and 9.4%), while Office vacancies expanded marginally to 20.7% (FY2021: 19.9%).  Vacancies at the V&A, GOZ (Growthpoint Australia) and C&R also decreased. The cost-to-income ratio for the Group increased to 41.4% from 38.8% for FY2021. The loan-to-value ratio for the Group was 37.9% for (FY2021: 40.0%). A final dividend of 66.9 cents per share was declared. Growthpoint is trading at a 13% discount to its peers from a price-earnings perspective.

Momentum Metropolitan Operating update and summarised audited annual financial statements for the year ended 30 June 2022

Consensus Recommendation          BUY


 
Highlights Actual Change
HEPS 260.6 cents 732%
Normalised headline earnings R4.4 billion 335%
DPS 100 cents 150%
Valuation Price to Earnings Dividend Yield
Momentum Metropolitan 5.9x 5.7
FTSE/JSE Life Insurers 8.8x 4.5%

Momentum Metropolitan delivered a 600% rise in profit to R3.80 billion for the full year ended June 2022, allowing the company to declare a final dividend of 65 cents, taking the total payout to 100 cents, the highest since 2017. The improvement in operating profit was driven by improved mortality results and improved investment returns. The company’s life insurance business also delivered operating profit growth, however, Momentum Insure and Momentum Metropolitan African delivered lower operating profits due to severe weather-related claims and large mortality losses. New business increased by 10% to R72.7 billion however the value of new business contracted by 14% to R626 million partly due to a shift towards lower margin products across many of its business units. The new business margin of 0.9% was lower than the prior year’s margin of 1.1%. Momentum noted the rise in emigration and a shrinking savings pool in the country as a key risk to the insurance and investment industry. Momentum is currently trading at a 33% discount to its peers from a price-earnings perspective, while its dividend yield is higher than its peers.

15 September 2022

FirstRand - Audited results and ordinary and special cash dividend declaration for the year ended 30 June 2022

Consensus Recommendation          BUY


 
Highlights Actual Change
Normalised earnings R32.7 billion 23%
Net asset value R164.9 billion 9%
DPS 342 cents 30%
Special DPS 125 cents -
Valuation Price to Earnings Dividend Yield
FirstRand 10.9x 5.4%
FTSE/JSE Banks 9.6x  5.5%

FirstRand delivered strong results for the 2022 financial year, recovering fully, and surpassing pre-pandemic levels allowing it to declare its highest annual dividend ever. The increase of 23% in normalised earnings was driven by FNB (60%) which increased its normalised earnings by 22% to R19.6 billion, RMB (25%) increased by 17% to R8.2 billion, WesBank (5%) increased by 23% to R1.6 billion and its UK operations (9%) increased by 9% to R2.9 billion. FNB delivered solid non-interest revenue (NIR) growth of 8%, driven by active customer acquisition, growth in customer activity and higher transactional volumes (+14% in SA). Overall net-interest income (NII) increased by 5% driven by growth in advances and transactional deposits, capital endowment and Group Treasury activities. The Group’s cost-to-income ratio remained stable at 52.5% from 52.4%, and the credit loss ratio contracted to 0.56 from 1.10. The Group return on equity is at a solid 20.6% (FY2021: 18.4), above peer group returns (16.8% average). FirstRand is trading at a 14% premium to its peers from a price-earnings perspective and yielding slightly less which we think is justified. 

Sources:
Company Financial Statements and Reports
InFront
IRess
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

Tiger Brands - Results

By Lesego Mthombothi

07/12/2022

Gold Poised for Second Week of Gains as Fed’s...

By Agnes Lovasz

02/12/2022

SA Market News

By Lesego Mthombothi

01/12/2022

Gold set for weekly gain as Fed signals slowe...

By Agnes Lovasz

25/11/2022

South African Equities Earnings Review: 14 - ...

By Lesego Mthombothi

24/11/2022

Meet our contributors
Carl Capolingua
×
Carl Capolingua
Market Analyst, Melbourne

Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions. Specialising in Australian and US stock markets in particular, Carl uses a top-down approach to assess the global macro picture before using both technical and fundamental techniques to select stocks. He regularly appears as an expert commentator on a number of media outlets throughout the Asia-Pacific region.
 
 
 

Lesego
×
Lesego Mthombothi
Market Research Analyst, South Africa

Lesego Mthombothi is an experienced market research analyst and investment professional who proudly holds an honours degree in investment management and completed her CFA level 1.
 
 
 

Mahmoud Alkudsi
×
Mahmoud Alkudsi
Chief Markets Analyst, MENA

Mahmoud is a market analyst, with over a decade of experience in financial markets. He follows main market movers and tracks their effect on the price chart. Mahmoud mixes technical and fundamental tools with a deeper focus on the technical side, and with his wide experience in providing educational and guidance materials to all levels of traders, he helps them in making informed trading decisions. Before joining ThinkMarkets, Mahmoud was head of market research departments in different reputed financial companies, where he provided market analysis for a variety of asset classes, including FX, equities, indices, and commodity futures. As an experienced market commentator, he was hosted by too many print and broadcast media, including not limited to Sky News Arabia, France 24, Alarabyia, Alsharq-Bloomberg, and CNBC Alarabyia to discuss key risk events their clear impact on the price action. Mahmoud holds a Master of Business Administration (MBA) from Cardiff Metropolitan University of Wales, UK, and speaks Arabic, English, and Spanish.

Shawn
×
Shawn Lee
Market Analyst, Malaysia

Shawn Lee has over eight years of experience in the financial market as a market analyst. Shawn provides market key insights and trade ideas through the market and technical analysis. He also held trader roles and guided traders in maximising one’s trading success.

Carl Capolingua
Carl Capolingua
Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions.
Lesego
Lesego Mthombothi
Lesego Mthombothi is an experienced market research analyst and investment professional who proudly holds an honours degree in investment management and completed her CFA level 1.
Mahmoud Alkudsi
Mahmoud Alkudsi
Mahmoud is a market analyst with over a decade of experience in financial markets. Mahmoud mixes technical and fundamental tools with a deeper focus on the technical side, and has experience in providing guidance to all levels of traders.
Shawn
Shawn Lee
Shawn Lee has over eight years of experience in the financial market as a market analyst. Shawn provides market key insights and trade ideas through the market and technical analysis. He also held trader roles and guided traders in maximising one’s trading success.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top