{"id":650262,"date":"2026-05-30T14:01:06","date_gmt":"2026-05-30T12:01:06","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=650262"},"modified":"2026-05-30T14:04:03","modified_gmt":"2026-05-30T12:04:03","slug":"top-analyst-backs-r12-billion-south-african-industrial-giant","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/investing\/650262-top-analyst-backs-r12-billion-south-african-industrial-giant.html","title":{"rendered":"Top analyst backs R12-billion South African industrial giant"},"content":{"rendered":"\n

Nitrogen Fund Managers CIO, Rowan Williams, believes Reunert has strong medium- to long-term prospects that offer opportunities for South African investors.<\/p>\n\n\n\n

Reunert is a South African industrial electrical and electronics group that was founded in 1888 and listed on the JSE in 1948. It was approved for a secondary listing on A2X in 2023.<\/p>\n\n\n\n

Its corporate headquarters are in Woodmead, Sandton, and it has international offices in Australia, India, Lesotho, Mauritius, the United States, and Zambia.<\/p>\n\n\n\n

It has a market cap of R11.75 billion, and it operates across three main segments: Electrical Engineering, ICT, and Applied Electronics.  <\/p>\n\n\n\n

Reunert’s main business is its Electrical Engineering segment, which manufactures and sells power cables and low-voltage circuit breakers.<\/p>\n\n\n\n

Its ICT segment provides office automation, business communication, digital integration, and rental-based finance solutions and services.<\/p>\n\n\n\n

The Applied Electronics segment develops, supplies and maintains high-precision electronic products for defence and mining, commercial applications and renewable energy solutions.<\/p>\n\n\n\n

The company’s latest interim results showed that revenue increased marginally and operating profit decreased by 23%.<\/p>\n\n\n\n

It attributed the slight revenue increase to strong circuit breaker export volumes in its Electrical Engineering segment, which grew by 2%.<\/p>\n\n\n\n

However, the same segment experienced a significant 40% decrease in operating profit \u2014 from R229 million to R138 million over the same period.<\/p>\n\n\n\n

It attributed this to decreased demand for infrastructure investment in South Africa and Zambia, the appreciation of the Zambian Kwacha against the US dollar, and record-high raw-material commodity prices.<\/p>\n\n\n\n

The ICT segment experienced a decline in revenue, which Reunert attributed to a continued subdued South African macroeconomic environment and longer client decision cycles.<\/p>\n\n\n\n

On the other hand, the group’s Defence Cluster, which falls under the Applied Electronics segment, performed well.<\/p>\n\n\n\n

It saw double-digit growth, contributing 16% to the Applied Electronics segment’s revenue and 19% to its operating profit.<\/p>\n\n\n\n

Overall, the Applied Electronics segment experienced a 41% increase in operating profit, but this was negated by declines in the other two segments.<\/p>\n\n\n\n

A nice entry point, says analyst<\/h2>\n\n\n\n
\"\"
Rowan Williams, Nitrogen Fund Managers CIO<\/figcaption><\/figure>\n\n\n\n

Ahead of these results, Nitrogen Fund Managers CIO Rowan Williams said he viewed Reunert as a buying opportunity, not a reason to panic. He shared these views in an interview on BusinessDayTV.<\/a><\/p>\n\n\n\n

“I think in the medium term we are going to see continued rollout of electrification in South Africa and the rest of Africa,” said Williams.<\/p>\n\n\n\n

This will directly benefit Reunert’s electrical infrastructure and cable operations. Williams is also optimistic about Reunert’s Defence Cluster.<\/p>\n\n\n\n

“They have quite strong exposure to the Middle East, and clearly with the conflict there’s going to be increased spending on defence.”<\/p>\n\n\n\n

The ICT business is ticking along, too, he said. “Overall, I think there are good prospects beyond sort of the short-term trading, and so it’s a nice entry point.”<\/p>\n\n\n\n

Williams argued that Reunert’s solid medium-term growth prospects make it a good investment opportunity.<\/p>\n\n\n\n

\n\n\n\n

Reunert share price over the past year<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n
\n","protected":false},"excerpt":{"rendered":"

Reunert has good medium to long-term prospects that present an opportunity for South African investors.<\/p>\n","protected":false},"author":341102,"featured_media":650533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80335],"tags":[82779,10212,82777],"class_list":["post-650262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-nitrogen-fund-managers","tag-reunert","tag-rowan-williams"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/650262"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341102"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=650262"}],"version-history":[{"count":11,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/650262\/revisions"}],"predecessor-version":[{"id":651031,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/650262\/revisions\/651031"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/650533"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=650262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=650262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=650262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}