Promising Scarlets centre Davies did score another for Wales before the interval but Italy's winger Andrea Bacchetti dragged the visitors back into contention just after half-time following Simone Favaro's fine break.
The Springboks ran in four tries in Udine as Italy paid for an early yellow card to Simone Favaro as wing Bryan Habana crossed for a try after Morne Steyn hit the post with the penalty kick from in front of the posts.