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Cie Financière Richemont

  • Cie Financière Richemont, commonly known as Richemont, is a Switzerland-based luxury goods holding company founded in 1988 by South African businessman Johann Rupert.
  • Richemont sales grew by 45.9% to €19.2 billion in FY22.
  • Although top-line outperformed the high revenue consensus, operating income and earnings per share came in below consensus, which led to a 12% selloff as trade opened with a further decline during trading hours.
  • Management noted that sales were up 31.7% in the APAC (Asia-Pacific) region despite broad lockdowns in China (100 out of 250 stores closed). Higher-than-expected growth in the Americas and the broader APAC region (excluding China) indicate a possible higher earnings growth trend.
  • We have an intrinsic value of R159.31 on Richemont and maintain our hold recommendation.
  • For more information about this counter, please contact your PSG Wealth adviser.

Tesla

  • Tesla is an American automotive and clean energy company that designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services.
  • Tesla products are bold, distinctive and disruptive and management forecasts a 50% volume growth over the short to medium term on a compounded basis.
  • Given the industry's infant stage, the global electric vehicle (EV) market share dynamics are similar to the US. In 2021, the group's global market share was slightly below 14%, followed by Volkswagen's slightly above 11%.
  • The group enjoys a first-mover advantage with no legacy internal combustion engine (ICE) vehicle transition journey weighing it down.
  • A visionary management team drives Tesla; however, execution risk increases with the launch of highly innovative products.
  • We have an intrinsic value of $548.1, indicating a downside of 19%; thus, we recommend a sell position.
  • For more information about this counter, please contact your PSG Wealth adviser.

Sibanye Stillwater

  • Sibanye Stillwater is a multinational precious metal mining company with a diverse platinum group metals (PGM) portfolio in South Africa and the US, gold and base metals operations, and various mining projects in South Africa and the Americas.
  • SSW’s released decent 1Q22 results, albeit significantly lower than the 1Q21 record results.
  • PGM prices boosted results.
  • The group faces continued strike action threats.
  • Based on our calculations, we found an intrinsic value of R54.48, implying a 14% upside.
  • At present, the risks outweigh the potential upside.
  • We recommend a hold position.
  • For more information about this counter, please contact your PSG Wealth adviser.

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