Santova just delivered the kind of result that makes you wonder why it trades on a single-digit PE. Revenue of R681.8m (up 40.2%), NPAT of R70.8m (up 54.2%), and HEPS of 56.2c (up 57.4%) — all driven by the Seabourne acquisition contributing a full six months versus only three months last time. But don't write it off as just an M&A story: comparable revenue was up 4.9% on higher UK and Netherlands volumes and improved freight rates, and the operating margin actually improved from 13.5% to 14.2% despite absorbing Seabourne's lower-margin fulfilment centre and express courier operations. That's operational gearing in action.
The cautionary is the kicker. Santova has entered negotiations on 'potential strategic acquisitions' that could be material. Management isn't sitting on its hands after the Seabourne deal — they're looking for more. NAV per share sits at 1,078.8c (up 5.7%), so there's balance sheet firepower. At R7.80, Santova is essentially a R1.45bn company earning R140m+ annualised, which works out to around 10x trailing earnings for a business with 14% margins, rising HEPS, and an acquisition pipeline. With a cautionary attached, the next move could be the catalyst. BULLISH.
This is a clean beat from an unfashionable stock. Quantum Foods isn't going to headline any cocktail parties — it's a poultry-and-feed producer based in Wellington — but the numbers do the talking. HEPS of 157.5c-173.7c is a solid 17-29% jump on last year's 134.4c, and the operational update reads like a laundry list of things going right: the Malmesbury mill expansion is fully operational, layer farming earnings were 'significantly higher' (partly on insurance claim proceeds from last year's losses), and the other African businesses all improved — Zambia, Uganda, Mozambique. Even feed mill efficiency is up.
The broiler business is the weak spot — lower margins on contracted live bird sales and higher operating costs ate into what should have been a stronger result. But that's a margin compression on one segment, not a business under duress, and the direction of feed costs and consumer demand is supportive. The stronger Rand helped too. At R8.89, this is a R1.1bn market cap business generating ~R170m in profit — a 15% earnings yield in a sector most analysts ignore. The FY2026 results land 27 November. BULLISH. Poultry in Africa is a long-term protein story and Quantum Foods is one of the few pure-play routes into it.
PPC just turned idle Zimbabwean farmland into R296m of cash. The Arlington Estate — 418 hectares of vacant land near Harare with zero commercial use for PPC's core cement business — was sold for US$27m gross. After costs and taxes, PPCZ declared a US$21.4m dividend, of which PPC's 88% share came to US$17.9m. At R7.71, that's about R6.50 per share in cash proceeds from a single non-core asset disposal — which means the market is valuing the entire operating business at next to nothing.
The question, as ever with PPC, is where the cash goes. The Zimbabwe dividend is a repatriation event — good. But PPC has a history of value-destructive decisions in its home market, and the South African cement industry is battling overcapacity and cheap imports. What matters now is whether management uses this R296m to reduce debt (net debt to EBITDA was elevated) or to fund something ambitious. If it goes to debt reduction, BULLISH. If it funds another margin-dilutive expansion, the market will punish it. For now, this is a positive catalyst that unlocks hidden asset value. BULLISH — but the proof is in the capital allocation, not the press release.
Oceana just dropped a trading statement that makes the fisheries sector look like a growth industry. HEPS of 825c-880c is a 46-56% leap from last year's 564.8c, and the drivers are exactly what you want to see: the US fishmeal and fish oil business delivered 'higher volumes and improved pricing' — that's a volume AND price double-beat — while Lucky Star Foods held its own despite limited inventory. Lower interest costs helped too. EPS of 815c-870c is similarly stellar (up 45-55% from 562.4c).
The only blemish is the Africa fishmeal and fish oil segment, which was 'weaker' — but that's a rounding error against the US business momentum. The key question is sustainability: fishmeal and fish oil prices are cyclically elevated because of supply constraints (Peruvian anchovy season closures, global fish stock management), so some of this tailwind will normalize. But at R66.00, Oceana trades on about 8x the midpoint of guided earnings with a dividend yield north of 5%. That's cheap for a company generating record earnings, even if some of it is cyclical. The full results land 26 November. BULLISH — fish is the new protein.
Coronation is a victim of its own consistency. EPS is expected to come in 5-15% lower at between 403.2c and 450.6c per share for FY2026, and FMEPS similarly down. That's not a disaster — it's what happens when a fund manager faces fee compression, subdued market volatility, and slow net inflows simultaneously. AUM of R750bn is up from the naggingly stagnant R700bn level, so at least the base is slowly growing. But at R41.13, Coronation trades on about 9.5x the midpoint of guided earnings with a ~5% dividend yield — and that multiple has been justified historically by the cyclicality of the earnings stream.
The bullish case is simple: when markets turn, Coronation's earnings will snap back hard because the cost base is largely fixed. The bear case is that structural fee pressure (passive investing, fee-waiver mandates) means the high-margin days are gone. Neither view is wrong — it depends on your holding period. For the next six months, this is a NEUTRAL hold. Not a sell, but not a buy either. Wait for the November results for the full picture.