PDSNET Market Snapshot

Previously, Kaap Agri, the KAL Group is an agricultural company owned 40,9% by Zeder, which is, in turn, 43,7% held by PSG. The company operates through over 190 retail outlets offering a wide range of products and services mainly to the farming community. Kaap Agri has seven divisions: (1) Pakmark offers a wide range of packaging materials for the local and export markets, especially to the fruit industry.

(2) Agrimark has over 70 stores in South Africa and Namibia offering a wide range of animal feeds, gardening equipment, tools, outdoor and camping equipment and pet accessories. (3) Liquormark offers a wide range of liquor products from beers to wines, spirits and mixers. (4) Kaap Agri Mechanisation offers farming machinery and equipment.

(5) Wesgraan offers grain handling and management services. (6) Expressmark supplies fuel, especially diesel, mainly to the farming community. It also has convenience stores. (7) The Fuel Company (TFC) aims to be the market leader in the independent fuel retail market in South Africa.

The group's product diversity has reduced its exposure to weather conditions in the agricultural sector, especially in the Western Cape, but it remains essentially a retail outlet which focuses on the agricultural sector and as such its results are impacted by the general level of consumer spending in South Africa and the state of the local economy as well agricultural conditions. On 4th October 2021 Kaap Agri announced that it had sold its 70,5% stake in TFC Properties for R446m.

On 19th January 2022 the company announced the acquisition of PEG Retail Holdings for R1,09bn. This acquisition increases the number of petrol stations which Kaap Agri has from 43 to 84. In its results for the six months to 31st March 2026 the company reported revenue up 5% and headline earnings per share (HEPS) up 12,5%.

The company said, "Net cash from operating activities R575.2 million, increased by 3.9% (31 March 2025: R553.6 million). Net interest-bearing debt to equity improved to 32.9% (31 March 2025: 48.4%)". We see KAL as a well-managed company that has exposure to South Africa's retail environment, loadshedding and also to the state of agriculture in this country.

Technically, the share has been moving sideways and is fairly volatile. We recommend waiting for the share to begin a new upward trend before investigating further. Issues surrounding expropriation of land without compensation have an impact on the company as does the price of fuel.

However, with a P:E multiple of 7,2 these risks look to be at least partly discounted. 

Reunert (RLO) is a company involved in electrical appliances, electrical engineering, and information communications. The company has been in existence for 130 years and listed for 70 years. It has operations in Australia and Sweden as well as in Zimbabwe, Zambia, and Lesotho. It exports to many countries around the world.

Electrical engineering accounts for roughly half of its annual turnover which is about R10bn. In its results for the year to 30th September 2025 the company reported revenue down 2% and headline earnings per share (HEPS) down 5%. The company said, "In South Africa, the Group's businesses demonstrated good resilience, retained market share, controlled costs well and generated strong cash flows, all of which reflect the strength of the Reunert investment case and the quality of the Group's assets.

Good strategic progress was made by the Group in increasing its presence in international markets and optimising the Group's portfolio". In a trading statement for the six months to 31st March 2026 the company estimated that HEPS would fall by between 16% and 21%. The share trades on a P:E of 11,27 which looks reasonably priced to us.

However, its future performance will depend on the rand/US dollar exchange rate, a recovery in the South African economy and increased business from government and quasi-government organisations. Technically, the share has been falling since November 2024 and we advised waiting for it to break up through its downward trendline.

That happened in August 2025 and the share has been trending up since then. We expect it to continue performing well.  

Finbond (FGL) is a micro-lending and insurance operation which operates in South Africa and America. This company wants to expand in the US to the point where 70% to 80% of its income is derived from that country within 3 to 5 years. It already has 66% of its income coming from the US and believes that the US offers significant growth opportunities.

Including South Africa, Finbond has a total of 694 branches. In its results for the six months to 31st August 2025 the company reported revenue up 13,4% and headline earnings per share (HEPS) of 11c compared with a loss of 2,3c in the previous period. The company reported, "Profit after tax attributable to owners increased 598.9% to R52.8 million (August 2024: Loss of R10.6 million).

Net asset value per share improved 7.2% to 148.9 cents (August 2024: 138.8 cents)". In a trading statement for the year to 28th February 2026 the company estimated that HEPS would be between 5,01c and 5,39c per share compared with a loss in the previous period of 1,9c. Technically, the share was in a long-term a downward trend and has been moving upwards since March 2022.

It trades about R93 000 worth of shares each day on average which makes it viable for a small investment. We believe that there may be better options than this penny stock, but it has begun to move up.

Nepi-Rockcastle (NRP) is a R124bn real estate investment trust (REIT) which operates more than 56 shopping malls in 9 central and eastern European countries, mostly in Poland (24%), Romania (35%), Slovakia (9%), Bulgaria (8%), Croatia (5%) and Hungary (11%). The share fell with the rest of the Resilient group (as a result of the 360ne report in January 2018) from its high of R217 in December 2017 to as low as R99 in November 2018 and then the COVID-19 pandemic took it down to under R55 in March 2020.

Since then it has staged a recovery to around R143.60. The company's total portfolio is worth 6,3bn euros (R124bn) and it ranks as the largest property share on the JSE. On 1st February 2022 the company announced that it had to pay 30m euros in a civil judgement by the Arbitral Tribunal in Poland.

In its results for the year to 31st December 2025 the company reported rental income up 11,2% and headline earnings per share (HEPS) down 15,4%. The company said, "We achieved record distributable earnings of EUR441 million, up 6.7% on the prior year, and net operating income (NOI) of EUR618 million, an 11.2% increase.

These results were driven by the acquisitions made at the end of 2024, reduced vacancy, indexation, retail uplifts and higher basket spend all while keeping a firm control of costs". In an update on the first quarter ending on 31st March 2026 the company reported rental income up 3,4% and a loan-to-value (LTV) of 32,4%.

The company said, "Like-for-like tenant sales increased by 3.8% in Q1 2026, with growth outpacing inflation. Footfall was broadly stable (+0.6%), while the average basket size improved by 3.3%, underpinning the sales uplift". Technically, the share has recovered convincingly from the pandemic and has been in an upward trend since 1st November 2023.

We still regard it as good value at current levels and expect the upward trend to continue. 

Tharisa (THA) is a mining company that mines and beneficiates platinum group metals (PGMs) and chrome. The company is listed in London and on the JSE. The Tharisa mine on the south-west limb of the Bushveld Igneous Complex (BIC) is an open pit operation with an estimated life of 17 years.

The company owns a subsidiary, Arxo Metals, which beneficiates chrome to produce high-grade chrome concentrates. The company is planning to expand into the Great Dyke area of Zimbabwe. In our view, this is one of the best mining investments on the JSE with a cost of production which is well below current metals prices and some good options for expansion.

The company has been involved in the Vulcan Plant which will improve chrome recovery to 82% from 65% and cost $54,2m. The target is to reach 200 000 ounces of PGM's (platinum group metals) and 2m tons of chrome ore production using a proprietary technology. The open pit operation is relatively low cost and does not have the problems associated with underground operations.

The company is planning to build a 5MW furnace that will enable it to produce iron alloys which are rich in platinum group metals and would sell for a far better price. In its results for the year to 30th September 2025 the company reported PGM production down 4,7% and revenue down 16,4%.

Headline earnings per share (HEPS) fell by 2,1%. The company said, "Chrome production at 1 558.2 kt (2024: 1 702.6 kt). Average metallurgical grade chrome concentrate prices of USD266/t (2024: USD299/t) PGM production at 138.3 koz (2024: 145.1 koz). Average PGM basket price increased by 18.6% with average prices received at USD1 615/oz (2024: USD1 362/oz).

Group cash on hand of USD175.1 million." In a production update for the 3 months to 31st December 2025 the company reported PGM recoveries at 78,8% and Chrome recoveries at 70,3%. 6E PGM production was down 6,1% and chrome production was down 14,2%, but the average PGM price received was up 13,1%.

The company said, "While output was softer at the start of the year, leading indicators across the business are trending positively, particularly in mining, where recoveries have begun to improve following weather and sequencing-related impacts experienced during the quarter." In a production update for the 3 months to 31st March 2026 the company reported 6E PGM ounces produced down 11,6% and chrome concentrates produced up 15,6%.

The average PGM price rose 37,6% to $3038 from the previous quarter's $2208. The company said, "While reef mined was lower in the quarter due to in-pit constraints, processing throughput remained strong with improved chrome feed grades supporting higher chrome concentrate production.

PGM production was impacted by lower grades in the reef being mined, although recoveries remained robust". In a trading statement for the six months to 31st March 2026 the company estimated that HEPS would increase by between 455,2% and 472,4%. Technically, the share is well traded.

The share had been falling since July 2024 due to declining commodity prices, but broke up through its falling trendline on 29th May 2025 at 1588c. It has since moved up to 2840c (14-5-26). The share remains a risky commodity counter dependent on the international prices of the commodities which it produces.