Imara Edwards Securities

The ZSE closed higher and turnover was ZWL 132.7m from a total volume of 1.5m shares. Market breadth was positive with 15 advancers against 8 decliners. Top gainers were Mash (+14.70%) and Simbisa (+11.72%). The top losers were Edgars (-5.56%) and Afdis (-5.45%).

The ZSE advises that the last day of trading in Simbisa shares shall be 25 Nov 22. Thereafter, Simbisa will be delisted from the ZE on 28 Nov 22 and relisted on the VFEX on 2 Dec 22. Investors will not be able to buy or sell Simbisa Shares during the period of the halt.

4. Econet remains dominant commanding 65.2% of the active mobile subscriber base, 75.0% of voice traffic, and 81.0% of data traffic. Voice and data services constitute over 72.0% of the company’s revenue base. In our view, data presents significant opportunities for the company.

3. Data contribution to revenue eased marginally to 34.2% from 34.5%, voice increased to 38.7% from 37.1%, interconnection improved to 7.7% from 6.8%, VAS & SMS reduced to 10.8% from 13.5%, handset sales were flat at 1.0% while other services improved slightly to 7.6% from 7.2%.

1. Econet Wireless Zimbabwe Ltd – Interim Results to 31 August 2022 Price: ZWL 6,950.00c PER (Rolling): 74.7x PBV: 0.9x Market Cap: USD 281.6m Recommendation: BUY

6. Innscor remains dominant in its businesses. The group continues to focus on volume growth, competitive pricing, and route to market enhancement, cost containment, and improving efficiencies. We maintain our BUY recommendation.

5. The projects will enhance product quality, improve efficiency, the addition of new products, and significantly increase production capacity. The projects span the milling, baking, protein, packaging, and beverage categories.

1. Innscor Africa Limited – Q1 2023 Trading Update The trading environment for Q1 23 was characterized by a relatively stable trading environment as inflationary pressures and currency volatility subsided.

3. The aforementioned developments may have a material impact on the value of the company’s shares. Shareholders and the investing public are advised to exercise caution when dealing in the company’s shares until the finalization of the matters at hand.

2. In line with Section 237 of the COBE and Clause 29.2 of Schedule 29 of the ZSE Listing Rules, the acquiring shareholder is required to table an offer to acquire Mash Holdings shares held by minority shareholders of the company.

1. Mash Holdings advises that ZB Financial Holdings, a major shareholder, has exceeded the 35.0% control block shareholding benchmark as per ZSE Listing Rules and the COBE Act.

6. We believe that Delta has a compelling story with its pristine balance sheet, strong cashflows, solid distribution network, and strong brands. There are high barriers to entry in this industry.

5. The group is undertaking a recapitalization programme to address capacity gaps and improve service. These include a lager beer pack line (expected in June 2023), SBs PET line (February 2023), and Harare brewery Chibuku Super line (June 2023).

1. Delta Corporation Limited – Interim Results to 30 September 2022 Price: ZWL 200.00 PER (Rolling): 5.6x PBV: 3.3x Dividend Yield: 4.8% Market Cap: USD 404.2m Recommendation: BUY