Imara Edwards Securities

Imara Edwards is the largest Stock Broker in Zimbabwe and one of the first in Africa (ex SA) trading since 1954. A division of @ImaraGroup.

[Imara Edwards Securities @ImaraEdwards]

The ZSE closed higher and turnover was ZWL 132.7m from a total volume of 1.5m shares. Market breadth was positive with 15 advancers against 8 decliners. Top gainers were Mash (+14.70%) and Simbisa (+11.72%). The top losers were Edgars (-5.56%) and Afdis (-5.45%).

[Imara Edwards Securities @ImaraEdwards]

The ZSE advises that the last day of trading in Simbisa shares shall be 25 Nov 22. Thereafter, Simbisa will be delisted from the ZE on 28 Nov 22 and relisted on the VFEX on 2 Dec 22. Investors will not be able to buy or sell Simbisa Shares during the period of the halt.

[Imara Edwards Securities @ImaraEdwards]

4. Econet remains dominant commanding 65.2% of the active mobile subscriber base, 75.0% of voice traffic, and 81.0% of data traffic. Voice and data services constitute over 72.0% of the company’s revenue base. In our view, data presents significant opportunities for the company.

[Imara Edwards Securities @ImaraEdwards]

1. Econet Wireless Zimbabwe Ltd – Interim Results to 31 August 2022
Price: ZWL 6,950.00c
PER (Rolling): 74.7x
PBV: 0.9x
Market Cap: USD 281.6m
Recommendation: BUY

[Imara Edwards Securities @ImaraEdwards]

3. Data contribution to revenue eased marginally to 34.2% from 34.5%, voice increased to 38.7% from 37.1%, interconnection improved to 7.7% from 6.8%, VAS & SMS reduced to 10.8% from 13.5%, handset sales were flat at 1.0% while other services improved slightly to 7.6% from 7.2%.

[Imara Edwards Securities @ImaraEdwards]

6. Innscor remains dominant in its businesses. The group continues to focus on volume growth, competitive pricing, and route to market enhancement, cost containment, and improving efficiencies. We maintain our BUY recommendation.

[Imara Edwards Securities @ImaraEdwards]

1. Innscor Africa Limited – Q1 2023 Trading Update
The trading environment for Q1 23 was characterized by a relatively stable trading environment as inflationary pressures and currency volatility subsided.

[Imara Edwards Securities @ImaraEdwards]

5. The projects will enhance product quality, improve efficiency, the addition of new products, and significantly increase production capacity. The projects span the milling, baking, protein, packaging, and beverage categories.

[Imara Edwards Securities @ImaraEdwards]

3. The aforementioned developments may have a material impact on the value of the company’s shares. Shareholders and the investing public are advised to exercise caution when dealing in the company’s shares until the finalization of the matters at hand.

[Imara Edwards Securities @ImaraEdwards]

1. Mash Holdings advises that ZB Financial Holdings, a major shareholder, has exceeded the 35.0% control block shareholding benchmark as per ZSE Listing Rules and the COBE Act.

[Imara Edwards Securities @ImaraEdwards]

2. In line with Section 237 of the COBE and Clause 29.2 of Schedule 29 of the ZSE Listing Rules, the acquiring shareholder is required to table an offer to acquire Mash Holdings shares held by minority shareholders of the company.

[Imara Edwards Securities @ImaraEdwards]

6. We believe that Delta has a compelling story with its pristine balance sheet, strong cashflows, solid distribution network, and strong brands. There are high barriers to entry in this industry.

[Imara Edwards Securities @ImaraEdwards]

1. Delta Corporation Limited – Interim Results to 30 September 2022
Price: ZWL 200.00
PER (Rolling): 5.6x
PBV: 3.3x
Dividend Yield: 4.8%
Market Cap: USD 404.2m
Recommendation: BUY

[Imara Edwards Securities @ImaraEdwards]

5. The group is undertaking a recapitalization programme to address capacity gaps and improve service. These include a lager beer pack line (expected in June 2023), SBs PET line (February 2023), and Harare brewery Chibuku Super line (June 2023).