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SOL: Lower Risk Profile And Bio Circular Surfactants Will Drive Future Upside

SOL: Surfactant Commercialization And Higher Margins Will Drive Future Performance

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SOL
AnalystConsensusTarget
Not Invested
Published 09 Feb 2025

Update shared on 05 Dec 2025

Fair value Increased 0.25%
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AnalystConsensusTarget's Fair Value
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1Y
19.0%
7D
3.6%

Analysts have nudged their price target for Sasol slightly higher, from R130.78 to R131.11. This reflects a modestly lower perceived risk via a reduced discount rate, which more than offsets slightly softer assumptions for long term revenue growth and profit margins.

What's in the News

  • Sasol International Chemicals launched LIVINEX IO 7, a bio circular, palm free and deforestation free surfactant derived from insect oils for fabric, home care, industrial and institutional cleaning markets (Key Developments).
  • The new nonionic surfactant is produced from black soldier fly larvae oil, a by product of sustainable protein production for animal feed. This process turns organic waste into valuable chemical feedstock and replaces traditional oleochemicals (Key Developments).
  • LIVINEX IO 7 leverages insect oil chemistry that is identical to vegetable oil. This allows the use of mature technology and existing processes without land use changes or competition with food crops (Key Developments).

Valuation Changes

  • Fair Value Estimate increased from ZAR 130.78 to ZAR 131.11, reflecting a marginal uplift in intrinsic valuation.
  • Discount Rate reduced from 24.01 percent to 23.53 percent, indicating a slightly lower perceived risk profile.
  • Revenue Growth trimmed from 4.42 percent to 3.92 percent, pointing to more conservative long term top line expectations.
  • Net Profit Margin eased from 8.38 percent to 8.32 percent, suggesting a small downward revision to profitability assumptions.
  • Future P/E inched up from 7.01x to 7.10x, consistent with a modest re rating of Sasol's forward earnings multiple.

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Disclaimer

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