Datatec Limited reported a mixed performance in H123: strong demand for cloud infrastructure, cybersecurity and networking solutions drove revenue and order growth, while supply chain issues continued to hamper the ability to deliver orders. Currency headwinds further impacted profitability, however, healthy order backlogs across all divisions should support better revenue growth in H223/FY24 as supply chain issues ease. On a conservative sumof-the-parts valuation using peer group averages, Edison Group estimates that Datatec could be worth 22% more than the current share price (ZAR44.84), or 69% once the ZAR12.5 special dividend for Analysys Mason (due to be paid on 5 December) is stripped out of the share price.
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