Strik­ing north

Finweek English Edition - - HOUSE VIEW - TANDISIZWE MAHLUTSHANA

IF YOU’RE LOOK­ING for a di­ver­si­fied stock, this should be it. This counter re­ported last week that it in­creased in­terim div­i­dend/ share 15.1% while earn­ings/share dropped 35.1%. It’s a sub­stan­tial knock, yes, driven by re­fi­nanc­ing costs of Medi­clinic’s rights of­fer, but con­sider that health spend is go­ing to in­crease in the coming years and Rem­gro now has an ef­fec­tive 45% share­hold­ing in SA’s sec­ond largest hospi­tal chain.

If you strip the Medi­clinic re­fi­nanc­ing costs out, this in­vest­ment hold­ing stock grew HEPS 18.6%, with earn­ings climb­ing to R3.14bn. Its two main money mak­ers, in­dus­tri­als and fi­nan­cials, re­ported re­mark­able re­sults amid dif­fi­cult trad­ing con­di­tions, with head­line earn­ings up 23% and 16% re­spec­tively.

If you have in­vest­ment ap­petite for Africa, keep a look­out for the fruits of the R500m joint ven­ture – the Pem­bani Rem­gro In­fra­struc­ture Fund – headed by a man who knows how to make money off Africa, former MTN CEO Phuthuma Nh­leko.

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