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 The Sharenet Daily 
Tuesday, 02 December 2014 - 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)

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Seed weekly - Netcare Ltd ? Investors in Safe Hands

Private hospital group Netcare Ltd offers a comprehensive network of healthcare services in South Africa and the United Kingdom. The group is the second-largest healthcare provider by market cap listed on the JSE, and is currently trading near all-time highs after delivering a price return of 47% over the last year.


Netcare was initially formed to combine the operations of Clin-Run, a specialist hospital promotion and management company, and the interests of founder Dr Jack Shevel. The group was listed on the JSE in December 1996 with 6 owned and managed hospitals.

A series of acquisitions followed, including Clinic Holdings in 1997 that added 25 hospitals to the group, and Excel Medical Holdings in 1998 that added another 10.

In 2001 Netcare acquired the Medicross group, and also expanded into the UK by providing specialised healthcare services to the NHS on contract. A controlling interest in the General Healthcare Group in the UK - then comprising 49 hospitals - was acquired in 2006.

Healthcare Network

Netcare operates 54 hospitals (9,424 beds), 87 primary healthcare facilities and 83 retail pharmacies in SA. In addition, the group operates 57 hospitals (2,788 beds) in the UK and 1 hospital and 4 primary healthcare facilities in Lesotho.

Latest Results

Netcare recently released its annual results for the year ended 30 September 2014, and reported strong growth in adjusted headline earnings per share (+19.5%), group cash flow from operations (+15.6%) and revenue (+16.1%). In addition, the final dividend increased by 18.5% to 48 cps.

SA operations increased revenue by 7.4%, with this growth being largely organic. The operating margin improved from 17.8% to 19.1%, reflecting process efficiencies and cost controls implemented by management. Full week occupancy of hospital beds improved to 69%, while 89 new beds were commissioned for the year.

An amount of R 2bn is allocated for capital investment in 2015, with plans to add another 510 beds to the network via new hospitals in Polokwane and Pinehaven and the acquisition of Ceres Private Hospital.

Netcare is employing a comprehensive long-term strategy to reduce its electricity usage and costs, and is launching several energy efficiency and renewable energy projects across the group. A cumulative saving of R 1bn on energy costs over the next 10 years is expected from these measures.

In the UK, revenue increased by 4.5% in pounds, with the NHS caseload increasing by 10% over the year and private demand remaining under pressure.

The graph below illustrates the change in payer mix over the last 4 years, with NHS cases increasing in significance for Netcare UK:

The percentage of total group revenue generated from the UK operations has increased from 45% to 49% over the reporting period, making Netcare a true rand hedge for SA-based investors.

In constant currency terms, the group’s revenue and earnings growth is not as impressive, with the impact of the rand weakening by 12% against the pound over the reporting period being very favourable for the group’s rand-based reporting.

Fundamentals and Outlook

Management expects demand for private hospital services in SA to remain strong, while the increased patient capacity generated by the planned capex projects should pull through to the bottom line over time. The energy efficiency programme should reduce ongoing costs over the longer term.

The UK healthcare market is underpinned by strong demand drivers, including population growth and increased population ageing projected to 2032. The caseload from private clients should increase again as the UK economic recovery gathers momentum, while the NHS is also expected to increase contracting to the private sector.

Netcare currently trades at a PE of 23, which is 35% more expensive than the ALSI’s 17, while the dividend yield is 2.2% compared to the ALSI’s 3.0%.

Netcare is currently held in the Seed Equity Fund at a 2.5% weight as a result of strong price and earnings momentum.

Kind regards,

Cor van Deventer

021 914 4966

Tue, 02 Dec 2014
Top News
Local markets By end of trade on Tuesday, the JSE All Share had risen 1.50% with gains across the board led by resource shares.  Full story

South Africa's Harmony Gold said on Tuesday it had started consultations on job cuts at its Kusasalethu mine aimed at lowering costs and returning the operation to productivity. It has begun a "Section 189" consultative process with unions and the government about job cuts at Kusas  Full story
Somali al Shabaab Islamist militants killed 36 non-Muslim workers at a quarry in northeast Kenya on Tuesday, prompting the president to sweep out his top security officials to tackle a relentless wave of violence.  Full story
The founders of Hong Kong's Occupy Central civil disobedience movement on Tuesday called on pro-democracy activists to retreat from the city centre over fears of violence, just hours after a student leader had called on supporters to regroup.  Full story
The Lebanese army detained a wife and daughter of Islamic State leader Abu Bakr al-Baghdadi as they crossed from Syria nine days ago, security officials said on Tuesday, in a move seen as likely to put pressure on the Islamist chief.  Full story
Oil prices resumed their decline on Tuesday after rallying the previous session, while world stock markets edged higher, with biotech shares gaining.. . .  Full story
Gold slipped lower on Tuesday as a strong dollar and signals that the U.S. economy is benefiting from a decline in oil prices. . .  Full story
Hong Kong shares rose on Tuesday, supported by a massive rally in mainland China indexes led by financial services stocks.. . .  Full story
China stocks leapt on Tuesday, as a mainland rally gained fresh steam, with investors pouring into brokerages and banking shares, widening the valuation. . .  Full story

Japan's Nikkei share average closed at a seven-year high on Tuesday, as investors speculated that the Bank of Japan was buying stocks, while. . .  Full story
Australian shares shook off a weak lead from Wall Street and recovered some of their recent losses on Tuesday, as rebounding oil and. . .  Full story
World stock markets fell on Monday as slowing factory activity in China and Europe added to worries about weaker global growth and Apple. . .  Full story
Gold saw its biggest daily surge in more than a year on Monday, reversing from 2 percent losses to a one-month high on. . .  Full story
SA Business
Some 250 jobs at a South African forging company could be cut after U.S. motor company Ford cancelled a components contract. . .  Full story
Africa's largest steel maker, ArcelorMittal South Africa, said on Tuesday it would raise its prices if the government implements a carbon. . .  Full story
South Africa's new vehicle sales rose 0.9 percent year-on-year in November to 51,098 units, data showed on Tuesday.. . .  Full story
South Africa's rand and government bonds weakened on Tuesday but stayed within ranges set in the previous session as a thin. . .  Full story

This year's rush by top-rated non-Muslim countries to tap the burgeoning Islamic finance market may not be repeated next year but a new. . .  Full story
A Malaysian subsidiary of South African insurer Sanlam is selling its general insurance business to a unit of Toronto-listed Fairfax Financial. . .  Full story
South African fuel storage firm Burgan Cape Terminals is set to lay a complaint against the local subsidiary of Chevron of. . .  Full story
Fastjet Plc, a UK-based budget airline operating in southern Africa, said low oil prices were delivering a "substantial" cash benefit that is likely. . .  Full story

South African financial services advisory firm Alexander Forbes returned to profit in the first half of its financial year, months after. . .  Full story
South Africa's Eskom was able to repair three out-of-service units and build up its diesel and water reserves after instituting rolling. . .  Full story
The South African Reserve Bank does not foresee risks of further ratings downgrades for Africa's most developed economy, Governor Lesetja Kganyago. . .  Full story
South Africa's economic imbalances have grown "more uncomfortable" and growth is unlikely to rebound enough to significantly ease budget and current. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0049591.43732.671.50%
JSE Top 4017:0043973.78737.411.71%
JSE Gold17:001063.1716.801.61%
JSE Financial17:0040405.77453.191.13%
JSE Industrial17:0069496.87939.671.37%
JSE Indust 2517:0061516.75931.931.54%
JSE Resource17:0043803.17978.732.29%
DJ Futures18:2817835.0082.000.46%
DJ Ind19:5817835.7258.920.33%
SP 50019:582062.238.790.43%
FTSE 10018:286733.8277.451.16%
All Ords07:385260.0069.301.34%
NZSE 5006:485430.04.420.01%
NameTimeRPMove% Move
Gold $19:591199.14-13.22-1.09%
Gold R19:5813352.4213352.420.00%
Gold R/kg19:5842925672631.72%
Silver $19:5916.4320-.0040-0.02%
Platinum $19:591215.30-18.70-1.52%
Palladium $19:59801.80-2.20-0.27%
Brent Crude19:5871.311.161.65%
Rand / Dollar19:5911.13610.14401.31%
Rand / Pound19:5517.38320.11790.68%
Rand / Euro19:5513.79420.08160.60%
Rand / NZD19:588.67788.67780.00%
Rand / AUD19:559.40700.06790.73%
Yen / Dollar19:59119.21800.93500.79%
Euro / Dollar19:550.80700.00550.69%
Dollar / Euro19:591.2386-0.0087-0.70%
Pound / Dollar19:550.63920.00390.61%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 SPANJRD  42010031.25.%46
2 STEFSTOCK  6757512.50.%383318
3 DELTA  3753510.29.%9534
4 ATLATSA  2202010.00.%5000
5 KEATON   230199.00.%11100
6 ARROW-B  950728.20.%328624
7 INFRASORS  12997.50.%2500
8 DIAMONDCP  150107.14.%1000
9 SUNINT  128558557.12.%65458
10 ASCEN_A  535357.00.%17243
11 DELPROP  865556.79.%945138
12 ROLFES  335206.35.%44550
13 CENRAND  389225.99.%1770
14 ARCMITTAL  27501505.77.%131221
15 NASPERSN  14799976995.49.%2114756
16 ACCELERAT  650325.18.%158021
17 ASTRAPAK  600295.08.%12362
18 KUMBAIO  2629412444.97.%629517
19 SASOL  4498619364.50.%3115692
20 SA-CORP  481183.89.%2066938

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Major Moves Down
SharenameSaleMove% MoveVolume
1 EASTPLATS  1227-273-18.20.%450
2 SYCOM  2900-590-16.91.%6109
3 NIVEUS  3200-574-15.21.%209449
4 PUTPROP  710-80-10.13.%3200
5 NET1UEPS  13001-998-7.13.%771
6 MMG  1850-140-7.04.%6246
7 OMNIA  18160-815-4.30.%1075811
8 ALTRON  1710-73-4.09.%2530
9 DCENTRIX  346-14-3.89.%61319
10 BELL  1150-45-3.77.%488
11 NAMPAK  4175-157-3.62.%1453103
12 S-OCEAN  110-4-3.51.%1958
13 DRDGOLD  222-8-3.48.%647573
14 MPACT  3448-124-3.47.%555179
15 SANTOVA  260-9-3.35.%205717
16 BRIMST-N  1550-50-3.12.%3695
17 ANGLOPLAT  34896-1103-3.06.%333333
18 TIGBRANDS  37261-1138-2.96.%548221
19 SEKUNJALO  132-4-2.94.%40296
20 DENEB  389-11-2.75.%9002

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New Highs
SharenameSaleHighMove% MoveVolume
1 ARROW-B  950950728.20.%328624
2 ALEXANDER  980101310.10.%3660085
3 TELKOM  67507065-170-2.46.%2257265

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New Lows
SharenameSaleLowMove% MoveVolume
1 OMNIA  1816017850-815-4.30.%1075811
2 DCENTRIX  346340-14-3.89.%61319
3 BASREAD  430430-10-2.27.%656765
4 BEE-SASOL  3500035000-140-0.40.%1117

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Index Summary
Index NameRPMove% Move
Top 4043,973.78737.411.71%
Mid Cap68,105.00300.110.44%
Small Cap57,129.57434.080.77%
Resource 2043,803.17978.732.29%
Industrial 2561,516.75931.931.54%
Financial 1515,486.81193.251.26%
Financial & Ind. 3065,678.281020.741.58%
All Share49,591.43732.671.50%
Oil & Gas 34,042.961465.064.50%
Mining 26,056.06454.451.78%
Gold Mining1,063.1716.801.61%
Platinum Mining34.93.330.95%
GENERAL MINING7,696.05142.941.89%
Oil & Gas Producers 18,304.27787.744.50%
Basic Materials 23,655.42403.001.73%
Chemicals 22,667.81-519.04-2.24%
Forestry & Paper 32,744.38580.181.80%
Industrial Metals 14,719.79720.415.15%
Industrials 45,381.35-314.35-0.69%
General Industrials 152.63-1.46-0.95%
Consumer Goods 62,872.05325.540.52%
Automobiles & Parts 7,649.34-88.31-1.14%
Household Goods402.4341.10%
Health Care 10,169.85181.141.81%
Beverages 204.70.320.16%
Index NameRPMove% Move
Food Producers 9,244.40-82.64-0.89%
Personal Goods 1,036.027.790.76%
Consumer Services 13,859.55447.343.34%
General Retailers 73,521.56202.580.28%
Travel & Leisure 6,281.47156.042.55%
Media 322.7716.745.47%
Support Services 2,870.93-59.07-2.02%
Telecommunications 10,515.40218.522.12%
Financials 40,405.77453.191.13%
Banks 70,161.081040.611.51%
Non-life Insurance 54,124.95-155.68-0.29%
Life Insurance 38,037.51489.351.30%
General Financial 3,913.8932.100.83%
Technology 47,841.51385.960.81%
SHARIAH TOP40 3,567.15752.15%
FTSE/JSE SHARIAH ALL3,798.03711.89%
COAL MINING13,654.361611.19%
FTSE JSE Fledgling 6,444.8260.10%
FTSE/JSE Alt X 1,372.92-4-0.30%
RESOURCE 23,848.465302.27%
DIVIDEND PLUS229.8320.81%
FTSE/JSE RAFI 409,431.521361.46%
Capped Top 4023,449.303941.71%
Capped All Share25,148.393711.50%
JSE TABACO 8,349.431311.59%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
04/12/2014AMECORSeptember 2014 (Interim)
04/12/2014INDEQTYSeptember 2014 (Final)
04/12/2014INDEQTYPSeptember 2014 (Final)
04/12/2014INDEQTYPASeptember 2014 (Final)
04/12/2014INDEQTYPBSeptember 2014 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ILLOVO01/12/1402/01/1512/01/15ZAR 0.3700
ECSP C28/11/1405/12/1415/12/14ZAR 1.0164
ECSP A28/11/1405/12/1415/12/14ZAR 0.7671
AME27/11/1402/01/1512/01/15ZAR 1.0000
PRESCIENT27/11/1416/01/1526/01/15ZAR 0.0275
Ex Div**
Share NameDec-DateLDTPay-DateAmount
INVPREFR20/11/1428/11/1415/12/14ZAR 4.3355
INVESTEC-P20/11/1428/11/1415/12/14ZAR 3.8029
INVLTDPREF20/11/1428/11/1415/12/14ZAR 3.5492
SPAR12/11/1428/11/1408/12/14ZAR 3.4500
CORONAT11/11/1428/11/1408/12/14ZAR 2.9600

Upcoming AGMs**
CodeCompany NameDateStatus
FSRFirstRand Ltd.02/12/2014Confirmed
FSRPAFirstRand Ltd.02/12/2014Confirmed
FSRPFirstRand Ltd.02/12/2014Confirmed
FSRPCFirstRand Ltd.02/12/2014Confirmed
BIFR1FirstRand Ltd.02/12/2014Confirmed

Stock Exchange News Service
02/12/201417:38ACUCAP PROPERTIES LIMITED - Dealings by an associate of a director
02/12/201417:30OANDO PLC - Rights Issue - Declaration and Finalisation Data Announcement
02/12/201417:28RAND MERCHANT INSURANCE HLDGS LTD - Dealing in securities by a director
02/12/201417:15STEINHOFF INTERNATIONAL HOLDINGS LTD - Results of the Annual General Meeting, CE...
02/12/201417:15SUPER GROUP LIMITED - Dealing in securities by the Company Secretary
02/12/201417:15SACOIL HOLDINGS LIMITED - Dealing in Securities by a Director
02/12/201417:05CROOKES BROTHERS LIMITED - Interim results for 6 months September 2014 and divid...
02/12/201416:50INGENUITY PROPERTY INVESTMENTS LTD - Further announcement regarding the acquisit...
02/12/201416:45OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
02/12/201416:35IMPERIAL HOLDINGS LIMITED - Dealings in Securities
02/12/201416:31FIRSTRAND BANK LIMITED - Partial capital redemption
02/12/201416:30OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
02/12/201416:15DISTRIB. AND WAREHOUSING NETWORK LD - Directors' dealings in securities
02/12/201416:04FORTRESS INCOME FUND LIMITED - Dealing in securities by a director of Fortress
02/12/201416:00TORRE INDUSTRIES LIMITED - Dealing in securities by an associate of a director
02/12/201415:45INVESTEC BANK MAURITIUS LIMITED - Investec Bank (Mauritius) Limited: Issue of cl...
02/12/201415:45INVESTEC BANK MAURITIUS LIMITED - Investec Bank (Mauritius) Limited: Issue of cl...
02/12/201415:45INVESTEC BANK MAURITIUS LIMITED - Investec Bank (Mauritius) Limited: Issue of cl...
02/12/201415:45INVESTEC BANK MAURITIUS LIMITED - Investec Bank (Mauritius) Limited: Issue of cl...
02/12/201415:45INVESTEC BANK MAURITIUS LIMITED - Investec Bank (Mauritius) Limited: Issue of cl...
02/12/201415:45INVESTEC BANK MAURITIUS LIMITED - Investec Bank (Mauritius) Limited: Issue of cl...
02/12/201415:45INVESTEC BANK MAURITIUS LIMITED - Investec Bank (Mauritius) Limited: Issue of cl...
02/12/201415:30GROWTHPOINT PROPERTIES LIMITED - Director's Dealings
02/12/201415:23SASFIN HOLDINGS LIMITED - Acquisition of Fintech and withdrawal of cautionary
02/12/201415:15THE PIVOTAL FUND LIMITED - Results of private placing and listing on the main bo...
02/12/201415:15MACQUARIE SEC SOUTH AFRICA LTD - Posting of Annual Financial Statement
02/12/201415:12ONELOGIX GROUP LIMITED - Specific Issue Of Shares To Kagiso Capital
02/12/201415:04SEARDEL INVESTMENT CORPORATION LTD - Apportionment: Tax cost for South African t...
02/12/201415:00SEPHAKU HOLDINGS LIMITED - Settlement of the Mtier purchase consideration, issue...
02/12/201414:37ELB GROUP LIMITED - Dealings in securities by a director
02/12/201413:47RESILIENT PROPERTY INCOME FUND LTD - TRP121: Notification of a disposal of benef...
02/12/201413:45LONDON FINANCE AND INVEST. GRP PLC - Results of AGM
02/12/201413:30CENTRAL RAND GOLD LIMITED - Central Rand Gold and Shengbang Jiabo (Beijing) Cons...
02/12/201413:05SEARDEL INVESTMENT CORPORATION LTD - Changes to the Board
02/12/201413:00GLENCORE PLC - 2014 Investor Day
02/12/201413:00NEW EUROPE PROPERTY INVESTMENTS PLC - Financial effects of the accelerated book...
02/12/201412:54EMIRA PROPERTY FUND - Disclosure of significant holding in Emira Participatory I...
02/12/201412:45UBUBELE HOLDINGS LIMITED - Renewal of Cautionary Announcement
02/12/201412:40GLENCORE PLC - GLN - Total Voting Rights
02/12/201412:00HARMONY GOLD MINING COMPANY LIMITED - Harmony announces new plan to return Kusas...
02/12/201412:00INTU PROPERTIES PLC - Director/PDMR Shareholding
02/12/201411:30FORTRESS INCOME FUND LIMITED - Listing of new financial instrument: FIFC15
02/12/201411:19ALEXANDER FORBES GROUP HOLDINGS LIMITED - Presentation on Alexander Forbes unaud...
02/12/201411:15ESKOM HOLDINGS SOC LIMITED - Amendment Tap Issue EL037
02/12/201411:02BANK WINDHOEK LIMITED - Availability of Annual Financial Statements and Annual R...
02/12/201410:52SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Announcement - Salient Dates ...
02/12/201410:48SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Announcement - Salient Dates ...
02/12/201410:44SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Announcement - Salient Dates ...
02/12/201410:42SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Announcement - Salient Dates ...
02/12/201410:40SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Announcement - Salient Dates ...
02/12/201410:35SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Announcement - Salient Dates ...
02/12/201410:15CURRO HOLDINGS LIMITED - Voluntary Announcement: Curro Strengthens Its Presence ...
02/12/201410:10KAGISO SIZANANI CAPITAL LTD (RF) - Release of annual financial statements - KSB0...
02/12/201409:47THE SPAR GROUP LIMITED - Dealing in securities by The Spar Group Limited Employe...
02/12/201409:35FIRSTRAND BANK LIMITED - Partial Capital Redemption: FRC184
02/12/201409:00GLENCORE PLC - Share buyback
02/12/201409:00QUANTUM FOODS HOLDINGS LIMITED - Dealing in Securities by a Director
02/12/201409:00ARCELORMITTAL SOUTH AFRICA LIMITED - Voluntary update to shareholders : ArcelorM...
02/12/201409:00DATATEC LIMITED - Proposed acquisition of German services and solutions provider...
02/12/201409:00NEW GOLD ISSUER LIMITED - NGPLT - Partial De-listing of Platinum Debentures
02/12/201408:30ALLIED ELECTRONICS CORPORATION LTD - Dealings in Securities
02/12/201408:19CURRO HOLDINGS LIMITED - Acceptance Of Options By Directors In Terms Of The Curr...
02/12/201408:00IVUZI INVESTMENTS LIMITED - Full Capital Redemption: IVA449
02/12/201407:48HARMONY GOLD MINING COMPANY LIMITED - Various presentations on Harmonys PNG asse...
02/12/201407:35REDEFINE PROPERTIES LIMITED - Results of dividend re-investment alternative
02/12/201407:30TOYOTA FIN SERVICES (SA) LTD - Full Capital Redemption: TFS127
02/12/201407:05ASSORE LIMITED - Assore has Conditionally Subscribed for an Interest of up to 30...
02/12/201407:05ALEXANDER FORBES GROUP HOLDINGS LIMITED - Unaudited interim results for the six ...

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