Research
The content listed is not for investment, financial, accounting or tax advice and is provided for informational purposes only.
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Liberty Two Degrees – 1H FY22 results and valuation update
Key message: despite a recovery in footfall and turnover in its retail portfolio, L2D’s relatively soft financial performance continues to disappoint. We fail to see any meaningful catalyst that could lead to the share re-rating. 1H FY22 results in line: DPS was...
Cement Import Monitor: Apr-Jun 2022
Key message: Cement imports for April-June 2022 are 39% down on 2021 levels, indicating a possible decline in imports as port conditions normalise.
Sappi: Q3 22E Insights
Key message: Strong Q3 expected, despite historically a seasonally weaker quarter. EBITDA to improve by 121% y/y to USD 320mn and EPS of USD 0.33/share. We expect net debt/EBITDA to decline to 1.5x.
Mondi: Insights from recent European peer results
Key message: Results are likely to be stronger than expected. Outlook for H2 is positive for UWF, Containerboard and sack kraft. Balance sheet has significant optionality post the PCC disposal. A special dividend of up to EUR 3/share (16% yield) would still leave significant headroom, in our view.
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Forestry & Paper: Industry Insights
Key message: European pulp prices place further pressure on Graphic paper producers. US CFS stats for June point to continued strong demand. Testliner prices come under further pressure and various producers confirm downtime due to rising costs. Energy prices in Europe have moderated as Nord stream gas flows resume.
Feedback from Industry Expert Call, Eric Diack, CEO AfriSam
Key message: AfriSam faces the same inflationary pressures as all producers. It is generating enough cash to maintain operations.