ANALYSE THIS: Absa Wealth & Investment Management's Godfrey Mwanza
We analyse Godfrey Mwanza, head of pan-Africa listed equities at Absa Wealth & Investment Management. If someone came to you tomorrow with R100m to invest in just one company, which would it be? Kenya Electricity Generating Company. It uses steam produced from reservoirs of hot water found below the earth’s surface in the Great Rift Valley to produce electricity. Kenya operates the world’s sixth-largest geothermal fleet and by 2023 it will be the world’s number one producer by installed capacity, surpassing the US and Japan. Despite the company rallying 59% in the year to date, the market is still undervaluing that growth. We expect its earnings before interest, tax, depreciation and amortisation to increase threefold in the next six years, but the stock is selling at only five times the expected 2017 earnings. We think that’s largely because of very little analyst coverage. It is a hidden African gem. Which talent would you most like to have? Speed-reading. My curiosity outweighs m...
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