Southern Sun’s Share Shoots for the Moon after Impressive Financial Results

Southern Sun Limited (JSE: SSU) has reported impressive financial results for the year ended March 2024, buoying investor confidence and propelling the share price to new heights. The company’s revenue surged by 19% to R6.0 billion, driven by a robust tourism and business travel recovery, particularly in the Western Cape. 

Southern Sun’s strategic cost-saving measures implemented during the COVID-19 period have paid off, contributing to a significant improvement in profitability. The company’s adjusted headline earnings per share (HEPS) surged by a remarkable 88% to 56.4 cents. 

Furthermore, Southern Sun has demonstrated a commitment to shareholder value by declaring its first-ever dividend of 12.5 cents per share, reflecting the company’s strong financial health. 

Technical Analysis 

Southern Sun’s share price is currently trading at R5.69, continuing its upward momentum. The recent surge has seen the share price climb decisively above the key moving averages – the 50-SMA (blue line), 100-SMA (orange line), and 200-SMA (red line) – all of which are now exhibiting a positive slope. This technical indicator suggests a strong uptrend. 

The RSI (Relative Strength Index) currently sits at 65.89, comfortably above the 50.00 level, indicating continued buying momentum. A sustained push higher could trigger a breakout towards the all-time high of R5.88. A successful breakout above this resistance level, accompanied by significant volume, could pave the way for a test of the 23.60% Fibonacci extension level (R6.14) and the 38.20% Fibonacci extension level (R6.29) in the near future. 

However, the market could be mindful of potential downside risks. A sustained pullback could see the 508 cents level act as initial support. A decisive break below this level, coupled with significant selling volume, could signal a bearish reversal and potentially expose the 479 cents and 428 cents support levels in the following sessions. 


Southern Sun’s impressive financial performance, coupled with bullish technical indicators, paints a compelling picture. While the RSI suggests a potential short-term pullback, the overall sentiment remains positive. Key levels to monitor include resistance at 588 cents and support at 508 cents. With a robust recovery in the hospitality sector underway, Southern Sun appears well-positioned to capitalize on the positive momentum.  

Sources: TradingView, Southern Sun, MoneyWeb, News24, Business Day. 

Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst 

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