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 The Sharenet Daily 
Tuesday, 21 May 2013 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Richemont ? Against the Tide

Compagnie Financière Richemont (Richemont) is one of the world’s top luxury goods groups, with several prestigious brands in its stable and access to markets around the world. In addition to managing its existing portfolio of brands, Richemont also endeavours to identify and acquire lesser-known brands in order to build them up over the long term. The company’s overall growth strategy envisions that each brand should be established in its own right by the development of competitive products and effective marketing programmes.

Richemont has its headquarters in Switzerland, and its listing on the JSE is courtesy of the company’s long-standing link to the Rupert family. The company was created in 1988 when all the international assets owned by the Rembrandt Group were spun off into a separate entity. Richemont then had direct holdings in Cartier Monde and Rothmans, and indirect holdings in Alfred Dunhill, Montblanc, and Chloé. Over the next 20 years Richemont acquired various direct and indirect stakes in Purdey, Vacheron Constantin, Van Cleef & Arpels, Jaeger-LeCoultre, IWC, and A. Lange & Söhne, amongst others. In 2008, Richemont restructured and Reinet Investments was formed as a separately traded vehicle to hold all the non-luxury goods businesses.

Recent results

Richemont released an impressive set of annual results for FY13 last week, and the market reacted positively with the share price jumping up 8% in a single day. These results were largely driven by an increase in sales, once again proving that economic uncertainty around the world has little effect on the appetite for luxury products.

Richemont reported an increase in sales of 14% to € 10.15b, which amounts to a 9% increase on a constant currency basis. With sales around the globe, varying exchange rates have a huge influence, and in FY13 the company was favoured by a weak Euro. The Group’s solid sales growth across all product segments and regions was mostly the result of growth in the company’s own retail network.

Sales growth in Europe (incl. Middle East and Africa) was especially strong at 17%, and was driven by increasing tourism from Asia and a weaker Euro. Growth in sales in Asia Pacific has slowed down considerably from figures of +36% in FY11 and +45% in FY12 to only +5% in FY13 on a constant currency basis.

When examining sales by product line, it is clear that the larger lines – Watches, Jewellery and Clothing – show strong growth, while the smaller lines are struggling.

Operating profit increased by 18% for the period, and the impressive operating margin was extended by a further 80 basis points to 23.9%.

Operating expenses increased in line with sales at 14%, with the company unable to curb selling, distribution, and administration expenses. Profit for the year and diluted earnings per share both increased by 30%, mostly due to non-cash charges related to the strengthening of the Swiss franc not recurring in FY13.

Richemont has increased its capital expenditure by 27% to € 612m, which is 6% of sales, with an increasing weight given to manufacturing compared to the previous year. The company’s balance sheet remains very healthy, with 17% of the assets available in cash to back any potential acquisitions.

A generous dividend of 1.00 CHF was declared, up 82% from last year’s 0.55 CHF, in order to celebrate 25 years of Richemont and to demonstrate management’s intention to grow dividends steadily over the long term.

Current Valuation

The Richemont share price has increased by 70% over the past year, with last week’s jump contributing to 26% growth in the last 30 days alone. At a PE of about 22 the share is a bit more expensive than the market, and the dividend yield of 1.13% is not that attractive compared to other Industrial shares. A low dividend yield for an investment holding company can be seen as encouraging, as management can potentially make better use of cash through acquisitions than paying it out to shareholders.

This share offers an opportunity for local investors to gain international exposure quite easily, and the appeal of Richemont’s products throughout economic cycles will ensure that these investors remain content.

The Seed Equity Fund, which blends a Value and Momentum portfolio, has an exposure of 2.3% to Richemont as part of the Momentum portfolio.

Kind regards,

Cor van Deventer

Source: www.richemont.com

021 914 4966

Tue, 21 May 2013
Top News
South African stocks closed at record highs on Tuesday, undaunted by simmering labour tension in Africa's largest economy that caused the rand to plunge to a four-year low.  Full story

South Africa's rand lost further ground against the dollar on Tuesday, slumping for the ninth straight session, amid an escalation in labour unrest ahead of mid-year wage talks .  Full story
Emergency workers pulled more than 100 survivors from the rubble of homes, schools and a hospital in an Oklahoma town hit by a powerful tornado, and officials lowered the death toll from the storm to 24, including nine children.  Full story
Top Internal Revenue Service officials told Congress on Tuesday they were unaware of the agency's targeting of conservative groups for extra tax scrutiny until recently and were not deliberately misleading lawmakers last year when they did not reveal the practice.  Full story
Syria said its troops destroyed an Israeli vehicle that crossed into its territory from the Israeli-occupied Golan Heights on Tuesday and warned that any attempt to violate its sovereignty would meet "immediate and firm retaliation".  Full story
Stock markets around the world edged higher on Tuesday amid signs of improving growth, even though questions about monetary policy limited gains.. . .  Full story
U.S. stocks gained on Tuesday as a record intraday high for Home Depot helped lift the blue-chip Dow, but investors were cautious a. . .  Full story
Britain's blue chip share index closed within sight of its all-time high on Tuesday, lifted by mining stocks and positive corporate news from. . .  Full story
European shares held below multi-month peaks on Tuesday, with investors unwilling to push the market higher without reassurance that the U.S. Federal Reserve remains. . .  Full story

Gold, down in seven of its last eight sessions extended earlier losses on Tuesday on a firm dollar, weak technical signals and speculation. . .  Full story
European shares reversed earlier losses to trade flat on Tuesday, taking heart from solid opening gains on Wall Street.. . .  Full story
U.S. stocks opened slightly stronger on Tuesday after the S&P 500 hit yet another intraday record in the previous session, with markets expected. . .  Full story
Rallying miners and a contract win for outsourcing company Capita helped steady the FTSE 100 by midday on Tuesday despite weakness in travel. . .  Full story
SA Business
A two-day wildcat strike at a Mercedes Benz plant in South Africa ended on Tuesday but industrial union NUMSA demanded a hefty pay hike for the sector, raising the prospect of. . .  Full story
South Africa's JSE Top-40 blue-chip index hit a lifetime high on Tuesday as a weaker rand currency at helped boost some exporters such as Anglo American and Kumba Iron Ore.. . .  Full story
Kenya's CFC Stanbic Bank posted a 79.5 percent jump in pretax profit for the first quarter from a year ago to 1.46 billion shillings.. . .  Full story

A sharp fall in the rand against the dollar to a four-year low on Tuesday was a "bit of an over-reaction",. . .  Full story
South Africa's chronic unemployment problem is likely to get worse and investor confidence will deteriorate if the country does not sort. . .  Full story
South Africa's rand tumbled for the ninth straight session on Tuesday after industrial union NUMSA demanded a hefty pay hike for. . .  Full story
The South African Reserve Bank's monthly leading business cycle indicator fell 1.1 percent in March from February, mainly due to a. . .  Full story

A two-day wildcat strike at a Mercedes Benz car plant in South Africa ended on Tuesday but industrial union NUMSA demanded a hefty pay hike for the sector, raising the prospect of manufacturing unrest alongside turmoil in the mines.. . .  Full story
The National Union of Metal Workers of South Africa (NUMSA) is demanding a 20 percent wage increase for its members in the automotive sector, the union's treasurer said on Tuesday.. . .  Full story
Company News
Unitholders of the Fund are hereby advised that the Fund intends making formal application to the JSE to receive a real. . .  Full story
B&W advised shareholders that additional orders to the value of R53 million have been secured in the Infrastructure sector. This brings. . .  Full story
Linked unitholders were advised that following the accelerated book build undertaken by Vukile on Tuesday, 7 May 2013, 20 512 821. . .  Full story
Shareholders were advised that Mr Tumelo Given Ratau has resigned as non-executive director of StratCorp with effect from 17 May 2013.. . .  Full story
Company Results
Revenue for the year ended 28 February 2013 increased to R1 billion (2012: R965.8 million). Earnings before interest, taxation, depreciation and. . .  Full story
Revenue for the interim period increased to R31.3 billion (2012: R28.1 billion). Operating profit rose to R1.5 billion (2012: R1.3 billion),. . .  Full story
Revenue for the interim period increased to R10.2 billion (R9.2 billion). Operating profit rose to R512.8 million (R465.1 million). Profit attributable. . .  Full story
Revenue for the year increased to R69.9 billion (2012: R66.9 billion), operating profit rose to R18.9 billion (2013: R16.6 billion), while. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0041815.36735.811.79%
JSE Top 4017:0037302.58757.402.07%
JSE Gold17:001340.2921.651.64%
JSE Financial17:0032083.18366.451.16%
JSE Industrial17:0054309.44684.201.28%
JSE Indust 2517:0047656.81690.161.47%
JSE Resource17:0047000.851554.993.42%
DJ Futures19:1213496.43-1822.57-11.90%
DJ Ind19:5815411.6176.330.50%
SP 50019:581672.806.510.39%
FTSE 10017:356803.8732.570.48%
All Ords09:015156.20-29.20-0.56%
NZSE 5007:484590.84-7.82-0.17%
NameTimeRPMove% Move
Gold $19:571376.71-16.68-1.20%
Gold R19:5813138.34-10.23-0.08%
Gold R/kg19:58422327113492.76%
Silver $19:5922.4820-.4220-1.84%
Platinum $19:591459.00-31.00-2.08%
Palladium $19:59746.20-1.10-0.15%
Brent Crude19:50104.27-.37-0.35%
Rand / Dollar19:599.55000.11471.22%
Rand / Pound19:5514.43660.06480.45%
Rand / Euro19:5512.31670.15661.29%
Rand / NZD19:587.80820.09391.22%
Rand / AUD19:559.37230.11201.21%
Yen / Dollar19:59102.57000.30500.30%
Euro / Dollar19:550.7745-0.0014-0.18%
Dollar / Euro19:591.29040.00200.15%
Pound / Dollar19:550.65940.00430.66%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 SABLE  283052022.51.%36500
2 SEARDEL  1902515.15.%670000
3 TIMES  190023814.32.%5046
4 SEARDELN  1802012.50.%10000
5 EHSV  155515811.31.%159565
6 PALLINGHT  190158.57.%418427
7 LONFIN  355226.61.%400000
8 EQSTRA  646315.04.%1511319
9 SENTULA  10555.00.%29600
10 ANGLO  2346910874.86.%4020616
11 REBOSIS  1425664.86.%542053
12 RICHEMONT  90293694.26.%10183863
13 DAWN  750304.17.%
14 CML  60702354.03.%661688
15 KAYDAV  13054.00.%55000
16 BRIMSTON  1350503.85.%7224
17 NASPERSN  7449927043.77.%1621551
18 CROOKES  54991993.75.%800
19 GROUP-5  37351353.75.%1003948
20 BILLITON  2867610193.68.%3370844

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Major Moves Down
SharenameSaleMove% MoveVolume
1 JDG CONV  900000-139900-13.45.%15
2 NUWORLD  1800-198-9.91.%2801
3 MIXTEL  320-30-8.57.%14330
4 DELTA  532-46-7.96.%700
5 CADIZ  130-10-7.14.%19680
6 FAIRVEST  141-9-6.00.%2384751
7 COMPCLEAR  345-20-5.48.%461
8 ONELOGIX  320-15-4.48.%24959
9 GROWPNT  2895-129-4.27.%12054118
10 SYNERGY-A  1150-50-4.17.%3500
11 BCX  501-21-4.02.%168792
12 JDGROUP  2980-120-3.87.%1325134
13 JASCO  110-4-3.51.%128931
14 CARGO  1400-50-3.45.%8000
15 SUNINT  9535-335-3.39.%726129
16 RBPLAT  4975-161-3.13.%127898
17 CITYLDG  12210-390-3.10.%28626
18 BARWORLD  9030-270-2.90.%1956158
19 CAPEVINH  675-19-2.74.%392839
20 AQUARIUS  583-16-2.67.%271416

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New Highs
SharenameSaleHighMove% MoveVolume
1 SABLE  2830283052022.51.%36500
2 SEARDEL  1901952515.15.%670000
3 TIMES  1900190023814.32.%5046
4 SEARDELN  1801802012.50.%10000
5 LONFIN  355355226.61.%400000
6 REBOSIS  14251425664.86.%542053
7 RICHEMONT  902991033694.26.%10183863
8 CML  607060732354.03.%661688
9 NASPERSN  744997494527043.77.%1621551
10 GROUP-5  373538401353.75.%1003948
11 DATATEC  576059701602.86.%201785
12 CAPCO  504050601302.65.%212724
13 SASOL  426004260010422.51.%2101045
14 AFRIMAT  960960202.13.%283233
15 MONDIPLCP  13420134502752.09.%835381
16 MONDILTDP  13430134792501.90.%426967
17 FAMBRANDS  905193671511.70.%485156
18 URONE  25662566411.62.%21970
19 NEPI  697571001051.53.%184000
20 REINET  20602060291.43.%3581836

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New Lows
SharenameSaleLowMove% MoveVolume
1 JDG CONV  900000900000-139900-13.45.%15
2 CADIZ  130121-10-7.14.%19680
3 JDGROUP  29802947-120-3.87.%1325134
4 SAPPI  22662217-52-2.24.%2446447
5 PICKNPAY  39403938-60-1.50.%646662
6 PIKWIK  17361725-20-1.14.%272391
7 LEWIS  52015035-27-0.52.%640130
8 CASHBIL  1185011750-50-0.42.%72462
9 SIBANYE  674659-1-0.15.%2791492
10 ANGLOPLAT  288502731810003.59.%873436

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Index Summary
Index NameRPMove% Move
Top 4037,302.00757.002.07%
Mid Cap56,080.00270.000.48%
Small Cap45,324.0089.000.20%
Resource 2047,000.001555.003.42%
Industrial 2547,656.00690.001.47%
Financial 1512,000.00168.001.43%
Financial & Ind. 3050,989.00747.001.49%
All Share41,815.00736.001.79%
Oil & Gas 32,237.00789.002.51%
Mining 28,705.00966.003.48%
Gold Mining1,340.0022.001.69%
Platinum Mining37.00.001.73%
GENERAL MINING8,333.00317.003.96%
Oil & Gas Producers 17,333.00424.002.51%
Basic Materials 25,271.00802.003.28%
Chemicals 20,160.00189.000.95%
Forestry & Paper 22,146.00293.001.34%
Industrial Metals 25,875.00642.002.55%
Industrials 42,747.00165.000.39%
General Industrials
Consumer Goods 51,568.00503.000.99%
Automobiles & Parts 8,140.0016.000.21%
Household Goods155.0032.09%
Health Care 66,882.00971.001.47%
Beverages 174.00-1.00-0.57%
Index NameRPMove% Move
Food Producers 70,700.00-430.00-0.60%
Personal Goods 901.0037.004.37%
Consumer Services 90,146.001750.001.98%
General Retailers 63,281.00243.000.39%
Travel & Leisure 5,331.00-77.00-1.43%
Support Services 2,325.00-29.00-1.24%
Telecommunications 87,012.001435.001.68%
Financials 32,083.00367.001.16%
Banks 51,670.001164.002.31%
Non-life Insurance 50,151.00302.000.61%
Life Insurance 31,036.00410.001.34%
General Financial 2,841.0038.001.36%
Technology 39,506.00381.000.97%
SHARIAH TOP40 3,443.001023.07%
FTSE/JSE SHARIAH ALL3,561.00922.68%
COAL MINING18,318.003952.21%
FTSE JSE Fledgling 5,779.00-5-0.10%
FTSE/JSE Alt X 997.000-0.02%
CAPPED PROPERTY 466.00-0.48%
RESOURCE 25,590.008223.32%
DIVIDEND PLUS209.0021.05%
FTSE/JSE RAFI 408,243.001521.89%
Capped Top 4019,694.003932.04%
Capped All Share21,173.003651.76%
JSE TABACO 6,962.00220.32%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
22/05/2013DELRANDMarch 2013 (Q)
22/05/2013MEDCLINMarch 2013 (Final)
22/05/2013MRPRICEMarch 2013 (Final)
22/05/2013MRPROBMarch 2013 (Final)
22/05/2013PRICEPMarch 2013 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ABIL PREF20/05/201307/06/201318/06/2013R 3.2200
NETCARE20/05/201319/07/201329/07/2013R 0.2700
PNR FOODS20/05/201328/06/201308/07/2013R 0.4600
VODACOM20/05/201321/06/201301/07/2013R 4.3000
BARWORLD20/05/201307/06/201318/06/2013R 0.9600
Ex Div**
Share NameDec-DateLDTPay-DateAmount
JSE12/03/201317/05/201327/05/2013R 2.5000
REDEFINE02/05/201317/05/201327/05/2013R 0.3370
HOWDEN08/03/201317/05/201327/05/2013R 0.3000
PHUMELELA11/04/201317/05/201327/05/2013R 0.2800
DELPROP06/05/201317/05/201327/05/2013R 0.2369

Upcoming AGMs**
CodeCompany NameDateStatus
BRTBrimstone Investment Corporation Ltd.22/05/2013Confirmed
MSMXMassmart Holdings Ltd.22/05/2013Confirmed
MSMMassmart Holdings Ltd.22/05/2013Confirmed
BRNBrimstone Investment Corporation Ltd.22/05/2013Confirmed
ILAAIliad Africa Ltd.23/05/2013Confirmed

Stock Exchange News Service
21/05/201317:30FIRSTRAND BANK LIMITED - New Instrument Listing - FRC174
21/05/201317:28GOLD FIELDS LIMITED - Voluntary announcement - Dealings in securities by prescri...
21/05/201317:15GOLD FIELDS LIMITED - Dealings in securities by a director of a major subsidiary
21/05/201317:13OASIS CRESCENT PROPERTY FUND - Notification to Unitholders of the Fund
21/05/201316:57FORTRESS INCOME FUND LIMITED - Acceptance of Linked Units in terms of the Fortre...
21/05/201316:52METMAR LIMITED - Cautionary announcement
21/05/201316:50BEIGE HOLDINGS LIMITED - Appointment of Interim Financial Director, Change in Di...
21/05/201316:30EXXARO RESOURCES LIMITED - Acceptance of conditional awards granted in terms of ...
21/05/201316:29WOOLWORTHS HOLDINGS LIMITED - Disclosure of significant holding of Woolworths Ho...
21/05/201316:13B&W INSTRUMENTATION & ELECTRICAL LD - Order Book Update
21/05/201316:10INVESTEC BANK LIMITED - Investec Bank Limited Credit Linked Note - IVC014
21/05/201316:05REUNERT LIMITED - Appointment Of New Member Of Social And Ethics Committee
21/05/201316:00RAINBOW CHICKEN LIMITED - Dealings in securities by a director of a major subsid...
21/05/201316:00COMMAND HOLDINGS LIMITED - Results of the general meeting
21/05/201315:56AFRICAN BANK INVESTMENTS LIMITED - Dealing in securities by a director
21/05/201315:20INGUZA INVESTMENTS (PTY) LIMITED - Interest Rate Resets - ING192 and ING193
21/05/201315:14SABLE PLATINUM LIMITED - Trading Statement
21/05/201315:00THE THEKWINI WAREHOUSING CONDUIT (RF) LTD - New Instrument Listing - TWC016
21/05/201314:50SABLE HOLDINGS LIMITED - Further Cautionary Announcement Relating to a potential...
21/05/201314:45VUKILE PROPERTY FUND LIMITED - Issue of New Shares Pursuant to the Accelerated B...
21/05/201314:40JASCO ELECTRONICS HOLDINGS LIMITED - Shareholder update: Disposal by Jasco of th...
21/05/201314:34VUNANI LIMITED - Audited Results For The Year Ended 31 December 2012 And Notice ...
21/05/201314:01ANGLOGOLD ASHANTI LIMITED - AngloGold announces executive leadership structure
21/05/201314:00ANGLOGOLD ASHANTI LIMITED - Appointment of CFO
21/05/201314:00VODACOM GROUP LIMITED - Share dealings
21/05/201312:22GROWTHPOINT PROPERTIES LIMITED - Growthpoint announces an Equity Raise for Acqui...
21/05/201311:22Capitec Bank Limited - Interest Rate Reset - CBL15
21/05/201311:20SYNTHESIS FUNDING LIMITED - SY1002 Synthesis Funding Limited - New Financial In...
21/05/201311:15SYNTHESIS FUNDING LIMITED - SY1001 Synthesis Funding Limited - New Financial In...
21/05/201311:00Mondi Limited - Appointment of Joint Chairman
21/05/201310:50CAPITEC BANK HOLDINGS LIMITED - Dealing in securities by an associate of a direc...
21/05/201310:49EFFICIENT GROUP LIMITED - Dealings in securities by a director of EFG
21/05/201310:20FIRSTRAND BANK LIMITED - New Instrument Listing - FRC172
21/05/201310:05MINE RESTORATION INVESTMENTS LTD - Trading Statement
21/05/201309:52STANDARD BANK OF SOUTH AFRICA LD - The Standard Bank of South Africa Limited - I...
21/05/201309:38SIBANYE GOLD LIMITED - Dealings in securities by a director
21/05/201309:30NEW GOLD ISSUER LIMITED - Listing of additional NewGold platinum debentures - NG...
21/05/201309:11GROUP FIVE LIMITED - Dealing in securities by director of a major subsidiary
21/05/201309:10AFRICAN BANK LIMITED - Interest Rate Reset - ABLC08
21/05/201308:38Stratcorp Limited - Changes To The Board
21/05/201308:15IVUZI INVESTMENTS LIMITED - Interest Rate Reset - IV03E
21/05/201308:03BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
21/05/201307:52INVESTEC BANK LIMITED - New Listing- Variable Strikes
21/05/201307:30COMPAGNIE FINANCIERE RICHEMONT SA - Changes to senior management
21/05/201307:15RESILIENT PROPERTY INCOME FUND LTD - Interest Rate Reset - RES12
21/05/201307:12BUILDMAX LIMITED - Podcast : Interview with the CEO regarding the 2013 results
21/05/201307:05ATLATSA RESOURCES CORPORATION - Salient Dates and Times regarding the Restructur...
21/05/201307:05OANDO PLC - Result of the Rights Issue of 4,548,236,276 ordinary shares of 50 Ko...
21/05/201307:05TRADEHOLD LIMITED - Trading statement
21/05/201307:05REUNERT LIMITED - Unaudited group results and cash dividend declaration for the ...
21/05/201307:05GOLD ONE INTERNATIONAL LIMITED - Appendix 3B: New issue announcement, applicatio...

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