A Quiet Week Ahead on The Releases Front

  • Market Overview

Locally, only a few notable stocks will issue releases next week:

  • RMB Holdings Ltd (JO: RMHJ ) (Full-Year Results): During 9M21 headline loss from continuing operations narrowed 89% y/y. RMH Property’s gross value decreased 6% y/y from June 2020 to R2.6 billion, mainly due to a stronger rand . The net asset value fell 7% since June 2020 to R4.6 billion (327.4 cents per share), a function of the fall in value of RMH Property. The listed property sector in South Africa remains under pressure with REITs generally trading at significant discounts to their net asset values. This has led to an oversupply of property stock, which, when combined with the lack of liquidity in the market, will impact the timing of the RMH monetisation strategy.
  • Adapt IT (JO: ADIJ ) (Full-Year Results): In a voluntary trading update FY21 revenue improved 1% to R1.5 billion with annuity revenue of 66% (FY20: 62%). EBITDA before corporate activity costs and bonus incentives increased 7% to R319 million, representing an improved operational performance. The margin came in at 21.3% (FY20: 20%). Cash generation continued to improve with further reductions in net debt levels. A cash conversion ratio of 2.10 times was achieved with net gearing falling to 17% (FY20: 45%).
  • Northam Platinum (JO: NHMJ ) (Full-Year Results): Normalised headline earnings per share (HEPS), BEE-adjusted, are expected to surge to between 2 098.1 cents to 2 165.7 cents, compared to 676.3 cents per share in FY20. HEPS are guided to range between 2 656.9 cents and 2 718.9 cents, representing a growth of 328.9% to 338.9% y/y. The result is underpinned by production growth and an increase in PGM prices.
  • From a corporate actions perspective, Monday marks the last day to trade African Rainbow Minerals (JO: ARIJ ), Bidvest Group (JO: BVTJ ), British American Tobacco PLC (JO: SNHJ ), Exxaro Resources (JO: EXXJ ), Metrofile Holdings (JO: MFLJ ), Momentum Metropolitan Holdings (JO: MTMJ ), Shoprite Holdings (JO: SHPJ ), and Trellidor Holdings (JO: TRLJ ) to receive their most recently declared distributions.
  • Accelerate Property Fund (JO: APFJ ), Ellies Holdings  (JO: ELIJ ), Etion (JO: ETOJ ), Kibo Energy (JO: KBOJ ) and Wescoal Holdings (JO: WSLJ ) will host AGMs in the upcoming week. Zarclear Holdings (JO: ZCLJ ) and Lighthouse Capital (JO: LTEJ ) will also host GMs in the upcoming week

Another quiet week is expected offshore, with only a few stocks anticipated to release results next week

  • Hennes & Mauritz expects 3Q21 earnings and revenue to grow 114% and 11% y/y respectively. Sales in 3Q21 matched the pre-pandemic level, excluding Asia and Oceania, with online sales continuing to grow even as stores reopened. Full-price sales have been strong, which is encouraging for margin and raises hopes that the persistent excess inventory can be reduced. The company is likely building on the 120 million members of its loyalty club, a significant online base compared to online-only peers.

A less eventful week is ahead in Europe and the Asia-Pacific region, with few significant releases anticipated

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