Update shared on17 Sep 2025
Fair value Decreased 17%KAP’s consensus price target has been revised down from ZAR2.60 to ZAR2.15, primarily reflecting weaker profit margins and slower forecast revenue growth.
What's in the News
- KAP Limited revised earnings guidance for FY2025, expecting a >30% decrease in EPS and HEPS compared to FY2024.
- Forecast FY2025 EPS to be between a loss of 1.8c and a gain of 2.4c (down 104%-95% vs. prior year); HEPS to be between 21.9c and 26.1c (down 52%-42%).
- Revenue is expected to grow modestly, while EBITDA and operating profit before capital items are anticipated to decline by less than 10% and less than 15%, respectively.
- Earnings were negatively impacted by higher finance costs, lower tax incentives, overall lower EBITDA, and significant impairments to goodwill, intangibles, and property, plant, and equipment.
Valuation Changes
Summary of Valuation Changes for KAP
- The Consensus Analyst Price Target has significantly fallen from ZAR2.60 to ZAR2.15.
- The Net Profit Margin for KAP has significantly fallen from 4.47% to 3.46%.
- The Consensus Revenue Growth forecasts for KAP has significantly fallen from 6.9% per annum to 6.1% per annum.
Disclaimer
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