By Chantal Marx, Pritu Makan, Sithembile Bopela, Zimele Mbanjwa, Motheo Tlhagale, Khumbulani Kunene
Richemont (CFR)
Compagnie Financière Richemont SA is a Swiss luxury goods group managed with a view to the long-term development of successful international brands. CFR owns several of the world's leading brands in the field of luxury goods, with particular strength in jewellery, luxury watches and writing instruments. Brands include Cartier, Alfred Dunhill, Montblanc, Lancel, and Van Cleef & Arpels.
The company will release full-year results this week. We expect continued strong momentum from the Jewellery Maison which has benefitted from structural growth and a continuation of K-shaped economy dynamics.
The biggest risks facing the company remains a major economic downturn that changes buying behaviour among ultra- high net worth individuals, as well as the company's ability to maintain pricing power and cost discipline long term.
Richemont's share price is down 7% over a one-year period and down 11% year to date. The stock is trading on a forward PE of 23.7 times - a discount to peers while its medium-term growth trajectory is comparatively more attractive.
Shoprite (SHP)
Shoprite Holdings is an investment holdings company whose combined subsidiaries constitute the largest fast-moving consumer goods (FMCG) retail operation on the African continent. The group operates a diverse portfolio of over 3 400 stores under trusted brands such as Shoprite, Checkers, Usave, LiquorShop, and several specialty businesses. With a robust supply chain and market-leading loyalty programme, the group serves more than 30 million customers annually, and maintains a strong focus on affordability, innovation, and omnichannel retail including the market-leading Sixty60 on-demand delivery service.
Following the exit of non-core businesses over the past two years, management is prioritising the strengthening of the core supermarket operations. The group remains focused on allocating capital toward high-return areas such as advancing the on-demand digital platform and extending reach into adjacent categories where the group currently operates but remains underrepresented.
The closure of the Strait of Hormuz has resulted in elevated energy and fertiliser prices, which could filter into food costs over the medium term, with upside risks also underpinned by El Nino effects. Higher energy prices may also syphon into the rest of the inflation basket leading to a hawkish tilt by the South African Reserve Bank (SARB). In this scenario, of higher borrowing costs, value retailers, like Shoprite, tend to hold up well.
Notwithstanding possible volume strain, there is less flexibility for consumers when it comes to food spend relative to other discretionary expenditure (like clothing, furniture and vehicles).
Shoprite is trading on a 12-month forward PE od 17.8 times - a discount to its average rating over time.
Naspers Limited (NPN)
Naspers Limited operates as a global technology investor and operator focused on building large regional lifestyle e-commerce ecosystems. Naspers' most notable asset is Prosus (PRX), which in turn, has a significant shareholding (~26%) in Chinese internet giant, Tencent (known for its social media, gaming and cloud service offerings). Prosus is essentially the international internet assets division of Naspers, focused on e-Commerce, Food Delivery, and Classifieds.
Spanning nearly 100 businesses with complementary capabilities, this diversified portfolio includes major platforms such as iFood, OLX, and PayU. Operations serve approximately two billion consumers worldwide, with a particularly strong presence across Latin America, Europe, and India. Active portfolio management and disciplined capital allocation drive the overarching strategy, enabling the group to capitalise on increasing digital adoption and consumer ecosystem expansion.
For the six months ended 30 September 2025, the group reported a 20% increase in consolidated revenue to $4.1 billion, alongside core headline earnings of $1.7 billion. The strong performance was driven by iFood, OLX, and PayU, propelling e-Commerce adjusted EBITDA up 71% to $557 billion amid an active M&A programme that included acquiring Just Eat Takeaway.com.
Management expects to achieve its 2026 Prosus-level guidance of $7.3 billion to $7.5 billion in e-Commerce revenue and $1.1 billion to $1.2 billion in adjusted EBITDA. Looking further ahead, the group targets an ambitious three-year plan to at least double e-Commerce revenue and triple adjusted EBITDA.
We expect the performances of Prosus and Naspers to be supported by an eventual recovery in Tencent's share price, better profitability in the other investments, and a continued narrowing of their respective discounts, which should see significant upside in their share prices, supported by ongoing share repurchases and further portfolio management and corporate activity.
NEPI Rockcastle (NRP)
NEPI Rockcastle provides real estate investment services. The company invests in commercial properties such as malls, parks, shopping centres and offices serving customers worldwide but with a particular focus on Central and Eastern Europe (CEE).
The group recently delivered a solid set of full-year numbers with distributable earnings growth being at the upper end of guidance - this was bolstered by the acquisitions made at the end of FY24, an improvement in vacancy levels, favourable indexation, rental uplifts and higher basket spend, all while keeping a firm control of costs. This ultimately resulted in record levels of total distributable earnings and double-digit net income growth despite a challenging macroeconomic background.
The company's medium-term growth prospects remain attractive, with distributable income growth expected to be between 3% to 5% annually, excluding developments, driven by inflation, base rental uplifts, and the expiry profile of leases, with acquisitions providing additional fuel. While the share price is only marginally higher year-to-date, consensus remains bullish on the company's upside potential.
We continue to like the entity's quality portfolio, strong balance sheet, and management's ability to source yield-accretive deals in the CEE region, evidenced by a sizeable development pipeline. NEPI Rockcastle is trading on a forward distribution yield of ~8.1% and a discount of ~4% to net realisable value (NRV) (August 2025: -8%, May 2025: -4%).
Bidvest (BVT)
The Bidvest Group is a service, trading and distribution company focused mainly on South Africa. The company specialises in services including cleaning, security, landscaping, indoor plants and flowers, and travel; Private sector freight management; Commercial, which involves the manufacturing and distribution of electrical products, office stationery, office furniture, packaging closures and catering equipment; and Automotive retail, among others.
Year-to-date, the share price is relatively flat amid heightened pessimism surrounding geopolitical events offshore. However, these headwinds have not resulted in any major earnings downgrades with major sell-side research houses recently reiterating their buy recommendations. This is mainly because Bidvest remains an attractive play in a period of continued macro uncertainty given its resilient history, particularly during 2022 to 2024 where its portfolio proved very defensive despite labour shortages, elevated levels of inflation, macro headwinds and volatile interest rates.
Encouragingly, Bidvest remains focused on de-leveraging through the current financial period but, importantly, has reiterated that the group will continue to grow at the same time. Continued growth is expected from hygiene services, hospitality services, inbound travel volumes, automotive brand offering expansion and early gains in large power related contracts. While some margin pressure crept in from restructured and renewed contracts as well as price deflation, this is likely to be offset by new contract wins and prior M&A activity.
Overall, management remains confident in the group's clearly defined strategy and that the diverse portfolio of businesses, as a collective, can successfully navigate through the ongoing changes in the global trading environment. Bidvest is trading on a forward PE of 10.9 times, below its long-term average rating. We retain our favourable long-term view of this counter.
