Update:-
Port 1:
LON : 1% of Port Down 15%
NPN : 64% of Port Up 26%
OCE : 29% of Port Up 7%
Port 2:
AVL : 96% of Port Up 1%
From Moneyweb,
http://www.moneyweb.co.za/news/companies-and-deals/naspers-four-themes-watch/The first is what happens to the local currency. Given that the majority of its value is now derived from offshore, Naspers has become a rand hedge play.
The bulk of Naspers’ valuation is its holding in Chinese company Tencent. The spectacular growth in this business has been the major driver of Naspers’ own growth surge, and as long as Tencent continues to deliver, the market’s view on Naspers is unlikely to change.
Some concerns have been raised about Tencent’s valuation and the fact that it is trading at very demanding multiples itself, but most analysts believe that the potential earnings warrant these ratings.
Nasper’s Pay TV business, Multichoice, has been the cash cow on which everything else has been built. The money it generates there has allowed it to make its other investments around the world.
Currently the majority of e-commerce businesses in which Naspers is invested are not adding to company earnings. As the below table shows, losses in the group’s e-commerce cluster have actually been increasing every year.
naspers 3
Source: Rexsolom Invest
What the graph also shows, however, is that development spend on this sector is also likely to peak in 2015 and decline going forward. The message from Naspers is that it has made its investments into this cluster and is now going to let them monetise.
Rocchi says that this is something he will be watching closely. He will be looking for these losses to start bottoming out and reversing, as these businesses represent the blue sky that investors are paying up for in Naspers.
“As an investor, you are hoping that this cluster will produce the next Tencent,” he says. “If it doesn’t, I think the share price could come under pressure because investors will say: you keep throwing money into this cluster, but where is the next big thing?”
Takaendesa agrees. Although Naspers has already admitted failing and pulled out of a number of smaller investments, its the larger ones that really need to perform.
“I don’t think the current e-commerce losses on their own would be enough to change the market view,” he says. “I’m only expecting e-commerce to reach break-even after 2018. But if there was a big failure somewhere like India or Brazil, then the market would lose faith, particularly following the change in management with Bob van Dijk having taken over from Koos Bekker as CEO
