Steinhoff (SNH) – More room for growth

While the US furniture market has not yet reached pre-crisis levels, growth has slowed. We think growth for SNH in that region will come from expanding its manufacturing capacity going forward.
We think there could be more brand consolidation within its Australian general merchandise stores as this division has significantly underperformed, dragging down its Australian margins.
We estimate that it could raise between ZAR32.9bn – ZAR49.4bn in the separate listing of its African operations.