Premier Group Ltd (PMR SJ): Hold: Further margin upside, valuation reflects it

研报英文原文证据摘录

Premier Group Ltd (PMR SJ): Hold: Further margin upside, valuation reflects it

) 12.1 7.7 6.8 6.1

increases our FY27-28 DHEPS estimates by c3%. Rolling forward our valuation results in a ROE (%) 18.1 18.1 17.6 16.8

revised TP of ZAR195 (from ZAR187). The stock is trading on a 12M forward PE of 14x

based on our estimates and appears fairly valued. Maintain a Hold rating. 52-WEEK PRICE (ZAR)

210.00

Efficiency investments continue to translate into margin gains, with Aeroton a key

medium-term catalyst. The commissioning and ramp-up of the Aeroton mega-bakery 165.00

(both lines operational by Mar’26) is central to the next phase of Millbake efficiency, 120.00

enabling network simplification (including the closure of Hermanstad after end-FY26) and 06/25 Target price:12/25195.00 06/26

improved fixed-cost absorption as utilisation ramps. We expect the margin benefit to build High: 190.50 Low: 134.10 Current: 189.11

over the next 12-18 months, with fuller benefits more visible into FY28e as volumes ramp Source: LSEG IBES, HSBC estimates

to targeted capacity and legacy capacity is rationalised. Beyond bakeries, we expect

efficiency gains from automation in Personal Care and improved utilisation/service levels Harshul Sharma*

Analyst, South Africa Consumer and Industrials

in Confectionery as investment benefits begin to materialise. HSBC Securities and Capital Markets (India) Private Limited

harshul.sharma@hsbc.co.in

RFG acquisition adds diversification, scale and a clear synergy runway. RFG (Culinary) +91 91 3676 7047

broadens PMR’s exposure into convenience meal solutions, while the enlarged footprint (44 Nick Webster*

manufacturing sites; 20 depots) provides scale. We expect meaningful cost savings by Senior EM Consumer Analyst

HSBC Bank plc