INDUSTRIALS

This sector comprises mining (cement), manufacturing, construction, automotive and logistics.

 INDUSTRY EXPOSURE

Business:  Crumbling infrastructure in South Africa has severely challenged business in this sector. Power cuts have stalled industrial activity and raised costs of self-generation. Unreliable rail services and congested ports have had a knock-on effect across this sector. Innovative solutions have brought opportunities for some, while others struggle with weak balance sheets and lack of foreign investment.

Environment: While Climate change dominates the news, this sector is also vulnerable to spills and pollution, and threats to water and energy supply. SA’s New Energy Vehicle policy raises opportunities and risks for the automotive industry, with knock-on effects for companies involved in the value chain.

Society: Societal issue materiality for this sector lies predominantly in the supply chain, with stresses on the economy putting pressure on margins and consequently on the compact between labour and operations. High material issues include:

  • Criminal elements disrupting major projects becoming more organised

  • The employment Equity Amendment Bill misaligned with demographics

  • Fair treatment of labour and communities surrounding operations suffering high levels of unemployment

Governance: Materiality largely stable from previous years, though there remains a corruption overhang from the Soccer World Cup (2010) which continues to haunt the construction sector.

In this report

  • Bidvest (BVT)

  • Barloworld (BAW)

  • Motus (MTH)

  • Super Group (SPG)

  • KAP Industrial (KAP)

  • Afrimat (AFT)

  • Grinrod (GND)

  • Hudaco (HDC)

  • Metair (MTA)

  • Murray & Roberts (MUR)

  • PPC (PPC)

  • Raubex (RBX)

  • Reunert (RLO)

  • Stefanutti Stocks (SSK)

  • Textainer (TXT

  • Wilson Bayley Holmes (WBO)

  • Zeda (ZZD)

Price: $965

Included:

  • Full 62-page report covering all 17 companies in the Industrials sector

  • Introductory in-person consultation, scheduled at your convenience; learn more about how to link FarSight scores with your valuation process, and get up-to-date answers to specifics on each company under coverage.