Stocks to Watch
- Rainbow (RCL) recently underwent unbundling and there is uncertainty around the maize market volatility.
- The poultry industry is facing challenges due to factors beyond management’s control, such as imports, load shedding, bird flu, maize and soy price volatility, weak consumer demand, and a hostile government.
- Shoprite Holdings (SHP) reported a 7.7% increase in adjusted HEPS for the first half of 2024.
- The underlying EPS growth rate is expected to remain above 10% for the second half of 2024, although the reported number may be lower due to forex gains in the previous year.
- The company’s revenue and EBITDA metrics are in line with trends, indicating stability and potential for future growth.
- Aspen’s 1H-24 results align with management’s guidance for FY23 and are in line with the performance of 1H-23.
- The normalized HEPS of 688cps is lower than the expected 1,588cps.
- The revenue and EBITDA metrics are consistent with trends.
- The second half is expected to benefit from recent deals in sterile manufacturing, which will have a positive impact on financials.
- The revenue of the Commercial Pharma division is expected to increase by an additional R1bn, driven by organic growth and acquisitions in South Africa and Latin America, offsetting the effects of China VBP.
- The manufacturing division is expected to be positively impacted by the initiation of sterile manufacturing contracts, with a projected increase of R500m. Please note that the technical shutdown of the French facility has been delayed to the second half of FY24.
Trading Listings added To Clarity, by Investec:
iShares MSCI World UCITS
iShares MSCI ACWI ETF
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