Today's Reviews
03 Sep 2026 · 5 reviews
🟢 2 Bullish
🟡 3 Neutral
🔴 0 Bearish
Ghost Mail: 19 May · BULLISH
← Previous: BULLISH on 26 Aug
Santam (SNT)
Unaudited Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2026 and Declaration of Ordinary Dividend
Santam held an 8.1% underwriting margin — squarely in the 5-10% target — despite absorbing R1.5bn in weather catastrophe claims vs just R144m a year ago. Net income rose 7% to R2.19bn, GWP grew 10%, and the interim dividend increased 10.2% to 650c, marking 35 consecutive years of payouts.
This was a solid defensive performance in a hostile environment. When weather claims jump tenfold — R1.5bn vs R144m — most insurers would be underwater. Santam wasn't. The 8.1% underwriting margin, while down from 11.3% at FY2025, stayed within the 5-10% target band. That's what disciplined underwriting looks like.
The concern is trajectory. The claims ratio deteriorated to 51.3% from 49.6%, and with diesel inflation at 50.8% and petrol at 31.7%, motor claims severity is only going one way. The GWP growth of 10% matches prior year but the quality of earnings is thinning — the underwriting result rose just 12% on a much bigger premium base. The share dropped 2.6% on the day — the market is pricing in H2 margin pressure. At a PE of 11x with ROE of 33%, it's not expensive, but the catalyst for re-rating needs a calmer weather year. Rating: NEUTRAL.
PE: 10.99 · P/B: 2.66 · ROE: 33.1% · R404.06
← Previous: BULLISH on 12 Aug
Impala Platinum (IMP)
Audited Consolidated Annual Results for the financial year ended 30 June 2026 and Cash Dividend Declaration
Implats delivered a monster year: revenue up 58% to R135.1bn, EBITDA quadrupled to R43.6bn, and HEPS surged 31-fold to 2,548c. Total dividends of 1,855c returned 82% of adjusted free cash flow to shareholders. Net cash position of R22bn with R37bn liquidity headroom.
When the PGM cycle turns, it turns hard — and Implats has never looked stronger. Revenue of R135.1bn generated a staggering R43.6bn in EBITDA, translating to HEPS of 2,548c. That's a 31x increase year-on-year. The balance sheet is fortress-grade: R22bn adjusted net cash, zero net debt, R37bn in liquidity headroom.
The dividend is the story: 1,855c total for the year — 490c base plus 955c additional — returning 82% of adjusted free cash flow. Production increased, excess inventory was drawn down, and costs remained disciplined. The share jumped 9% on results day. At a trailing PE of 7.1x and PB of 1.84x, it still looks undemanding if PGM prices hold. The risk, as always, is the cycle turning against you — but right now Implats is printing cash at a rate that makes the valuation hard to ignore. Rating: BULLISH.
PE: 7.14 · P/B: 1.84 · ROE: 29.2% · R245.61
Fortress REIT (FFB)
Consolidated audited financial results for the year ended 30 June 2026 and prospects
Fortress posted distributable earnings of R2,234m with like-for-like net property income growth of 6.8%. The 2H dividend of 90.91c per share brings the full year payout to 178.80c. The share jumped 5.3% on results day as the market cheered the steady operational delivery.
Fortress delivered a clean, straightforward set of results. Like-for-like NPI growth of 6.8% is solid for a SA-focused REIT in this economy — it tells you the portfolio is well-located and well-managed. Distributable earnings of R2,234m supported the full-year dividend of 178.80c, with the 2H payout of 90.91c up from 1H's 87.89c — a positive trajectory.
The balance sheet is the mixed bag. Shares outstanding ballooned 70% year-on-year following the accelerated bookbuild, which dilutes per-share metrics. Debt/equity of 0.78x and interest cover of 2.1x are manageable but not conservative. At a PE of 6.0x and PB of 0.87x, you're not paying for growth — you're paying for the yield. The 5.3% share price jump reflects relief that operationally, Fortress is doing what it said it would. A decent income play, but don't expect capital fireworks. Rating: NEUTRAL.
PE: 6.02 · P/B: 0.87 · ROE: 15.7% · R25.00
Ghost Mail: 27 Feb · NEUTRAL
← Previous: BULLISH on 26 Aug
Discovery (DSY)
Annual Results for the year ended 30 June 2026 and Cash Dividend Declaration
Discovery smashed through the $1bn normalised operating profit barrier for the first time, posting R17.75bn (+17%) with exceptional 85% cash conversion. Headline earnings surged 34% to R12.9bn. The Bank is finally contributing meaningfully — up 600% to R370m — and every SA business grew operating profit.
This is the set of results Discovery bulls have been waiting for. Normalised operating profit crossed the R17.75bn mark — that's $1bn for the first time — and the quality of earnings is improving. Cash conversion hit 85%, well above the 60-70% target, funding R3bn in debt repayment while still investing for growth. Normalised HEPS grew 21% and ROE ticked up to 16.5% from 15.4%.
Segmentally, Discovery Bank is the star: profit exploded 600% to R370m and it's now a genuine contributor rather than a cost centre. Health grew 9% to R4.6bn, Life added 6% to R5.9bn, and Vitality jumped 21% to R3.9bn. The share fell 1.6% on the day — likely FX headwinds on the UK Vitality contribution and some profit-taking after a strong run. But on fundamentals, this is a quality compounder executing well. Final dividend of 273c. Rating: BULLISH.
PE: 13.49 · P/B: 2.11 · ROE: 17.8% · R259.70
Bytes Technology Group (BYI)
Chair transition
Patrick De Smedt retired as Chair of Bytes Technology Group on 4 September 2026, succeeded by Gavin Rochussen. This is an orderly, well-telegraphed transition — the market has known since July that Rochussen was the chair-designate. No surprises here.
This is governance housekeeping, not a strategy shift. De Smedt has been chair since Bytes' 2020 IPO and the transition to Rochussen was flagged back in July with a clear timeline. Rochussen brings serious credentials — former CEO of Coronation Fund Managers and currently chairs multiple boards.
The bigger picture for Bytes is the underlying business: FY2026 revenue grew just 1.6% in GBP terms and earnings dipped 6.5% as Microsoft incentive changes and internal sales realignment weighed. At a PE of 19.4x, the rating is generous for a business with low single-digit growth. The chair change doesn't alter the investment thesis — this remains a quality IT reseller with sticky government and corporate relationships, but the growth engine needs a spark. Rating: NEUTRAL.
PE: 19.36 · R89.94