Last close As at 05/08/2026
ZAR4.15
▲ 0.05 (1.22%)
Market capitalisation
ZAR470m
Research: Real Estate
Calgro M3’s core business is integrated residential housing development and memorial parks. Established in 1995, the company generates the bulk of its revenue from the Gauteng and Western Cape provinces in South Africa. The residential development business acquires land, develops bulk infrastructure and builds affordable and luxury residential units for sale. In Q224, Calgro M3 acquired a huge land parcel that it plans to develop over the next 15 years, adding ZAR18bn to the current revenue pipeline of ZAR16bn. Calgro also acquired Platinum City Memorial Park, which added ZAR426m to the memorial parks revenue pipeline. The stock is trading at a low historical P/E of 3.0x and a shareholder yield (sum of dividend yield, share buyback yield and debt repayment yield) of 5.4%, underpinned by the recent ZAR73m share buyback. The price to book ratio is 0.4x.
Calgro M3 Holdings |
Investments support strong revenue pipeline
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Real estate |
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11 September 2024 |
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Calgro M3’s core business is integrated residential housing development and memorial parks. Established in 1995, the company generates the bulk of its revenue from the Gauteng and Western Cape provinces in South Africa. The residential development business acquires land, develops bulk infrastructure and builds affordable and luxury residential units for sale. In Q224, Calgro M3 acquired a huge land parcel that it plans to develop over the next 15 years, adding ZAR18bn to the current revenue pipeline of ZAR16bn. Calgro also acquired Platinum City Memorial Park, which added ZAR426m to the memorial parks revenue pipeline. The stock is trading at a low historical P/E of 3.0x and a shareholder yield (sum of dividend yield, share buyback yield and debt repayment yield) of 5.4%, underpinned by the recent ZAR73m share buyback. The price to book ratio is 0.4x.
Land acquisitions bode well for future growth
Calgro M3 generates the bulk of its revenue from building and selling residential units. In FY24, the company recorded three- and five-year revenue CAGRs of 13.5% and 5.2%, respectively. The residential development revenue pipeline has jumped to ZAR34bn from ZAR16bn after the acquisition of the Frankenwald development. The land is adjacent to the Marlboro Gautrain Station between the M1 and N3 national highways in Johannesburg (7.4km from the affluent Sandton Central Business District). Another recent investment is Platinum City Memorial Park in Rustenburg, North West province. This purchase has contributed ZAR426m to the memorial parks revenue pipeline of ZAR2.6bn, which is underpinned by 120,348 grave sites, priced at ZAR22,079 per grave, on average.
Bankenveld District City doubles revenue pipeline
Calgro M3 and Eris Property Group acquired the Frankenwald parcel to develop the Bankenveld District City, which is a multi-used property development. Eris Property Group will focus on commercial properties, using 885,000sqm of land to build a regional shopping mall, data centre, office blocks, a logistics hub and a 6ha high-density agricultural facility. Calgro M3 will build between 20,000 and 30,000 residential units, priced between ZAR500,000 and ZAR1.5m, over a 15-year period. This development will add ZAR18bn to the current revenue pipeline of ZAR16bn. Management expects the development of the bulk infrastructure (municipal services and internal infrastructure), a third of the land, to take two years to complete, with commencement scheduled for October 2024. The top structure will be built over a 13-year time horizon. The projected revenue will be c ZAR1.3bn per year; FY24 group revenue was ZAR1.28bn.
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Historical financials
Source: Company financial reports |
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
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Research: TMT
AUSTRIACARD reported a step-up in adjusted revenue in Q224 (+12.4% y o y) as payment card sales re-accelerated and digital transformation technologies projects ramped up. H124 adjusted revenue was 7% higher and adjusted EBITDA 11% higher, resulting in margin expansion of 0.6pp to 15.0%. Management reiterated full-year guidance for adjusted revenue and EBITDA, for which our forecasts are unchanged. We have slightly increased our tax rate assumptions and, reflecting a slower unwind of working capital, have increased our net debt forecasts.