Looking to invest this year? Pay attention to these JSE-listed companies in 2025

Are you looking to invest on the Johannesburg Stock Exchange listed companies at the start of the new year? Some of the best investments could be in the private education, energy and hospitality sector. This is according to Anchor Capital who have released its list of companies that are worth watching in 2025. The investment company said that South African investors have experienced several lean years but 2024 was finally a year when the stars could align, somewhat.Unlike global investors, who took advantage of stocks that were linked to artificial intelligence (AI) SA investors had no choice but to focus on companies that had low valuations and were positioned well for any hint of good news, according to Anchor Capital. Anchor noted that investors paid huge attention to the 2024 elections and the formation of the Government of National Unity (GNU). These two events set off a strong recovery among SA Inc. shares (those companies whose earnings are predominantly linked to the domestic economy and span all sectors).So where should you be looking in 2025?Here are three companies that Anchor Capital have highlighted for the 2025 year: ADvTECHStephan Erasmus, an Investment Analyst at Anchor said that ADvTECH has positioned itself as one of SA’s more compelling private education providers. The ADvTech Group owns the Crawford schools, Trinity House, Pinnacle Colleges, Varsity College, Vega and Rosebank College, amongst others.“Its share price advances this year reflect growing trust in the company's strategy and its ability to deliver steady improvement in both academic outcomes and financial returns,” he said. Erasmus said that the company is focused on expanding its student base while keeping tuition affordable. “ADvTECH purchased a former training and conference centre in Sandton and by 2026, it plans to offer two tertiary brands, Varsity College Sandton and Vega Bordeaux, on this 47,000-square-metre site,” he explained. This new campus will be capable of hosting 9,000 students, roughly doubling the current capacity.Erasmus said that ADvTECH has navigated a challenging domestic economic environment with a measured approach, securing trust from parents, students, and investors.RENERGENThe next JSE-listed company that should be watched in 2025 is Renergen. The energy company is not well-known in the global energy landscape but is positioning itself to play an essential role in two key areas: liquefied natural gas (LNG) and helium, according to Erasmus. “With unique assets and ambitious plans, Renergen may well thrive as the world increasingly moves to cleaner energy solutions and grapples with helium shortages,” he explained. He said that Renergen’s most valuable asset is helium, with 13.6 billion cubic feet (BCF) of reserves, making it one of the richest producers in the world. “These reserves come from only 14% of its licensed production area of 1,870 square kilometres, so significant potential exists in untapped areas,” Erasmus added.Moreover, he noted that Renergen has a market value of R1.2 billion, which arguably does not reflect the true worth of its assets. Erasmus argued that Renergen is undervalued, especially considering that it is SA’s only LNG producer and is 73 km from Sasol’s gas pipeline. “This positions the company well to help meet the country’s potential gas shortages”.SOUTHERN SUNLiam Hechter, also a fund manager at Anchor, said that the Southern Sun Group should not be overlooked in 2025. The company was hit hard by the Covid-19 pandemic but despite the challenges Southern Sun managed to stay above water. Hechter said that the company’s management team set out to right-size the operations as soon as the government instituted the lockdowns.“It embarked on a maintenance capex programme that would have been very difficult to perform under normal circumstances without materially disrupting operations. They used the downtime productively, ensuring that the operating leverage would be explosive when the business returned to normal operating capacity. And that is exactly what we believe we are experiencing at the moment,” he explained.Hechter said that while some of the Southern Sun assets might still be operating well below a satisfactory level, there are pockets of strength (like the Cape-based hotels) that are benefitting from a strong rebound in foreign tourism.“Tourist numbers remain well below the peak of 2018, underpinning our view that Cape Town hotels have more room to increase capacity or adjust prices higher to meet demand. That, coupled with the added optionality of a recovery in Sandton-based business travel over this year (the G20 summit being one example that should contribute nicely).”Hechter expects the hotel’s occupancy to increase to above 62% in 2025 from 58% in 2023/2024, with each additional 1% of occupancy adding R100 million to the company’s operating free cash flow.IOL BUSINESS

Looking to invest this year? Pay attention to these JSE-listed companies in 2025

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Allgemeine Zeitung 2025-01-08

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Looking to invest this year? Pay attention to these JSE-listed companies in 2025

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Allgemeine Zeitung 2025-01-08

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