Research

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Spear REIT – FY22 results and valuation update

Key message: an impressive set of results and solid guidance provides continued justification for Spear’s Western Cape-focused investment case. The LTV reduction roadmap has been achieved and the focus will soon return to finding accretive inorganic growth opportunities.

Forestry & Paper: Textile Fibre Insights

Key message: Cotton further in the red, while VSF and DWP gain further ground. Both VSF inventory days (13.0) & average op. rate (78%) stable. VSF theoretical profit improves but still in the red at -USD 120/t (VSF/DWP spread +15% YTD). Spot DWP is USD 1,140/t.

Forestry & Paper: Industry Insights

Key message: Pulp prices steady, however more increases announced in most regions. Graphic Paper prices stable, while kraftliner extends its gains. The sack kraft market continues to heat up with tighter supply and more price increases announced.

Forestry & Paper: Textile Fibre Insights

Key message: Cotton and polyester in the red, while VSF and DWP gain further ground. VSF inventory days down to 13.0 & the average op. is stable at 78%. VSF theoretical profit improves but still in the red at -USD 133/t (VSF/DWP spread +11% YTD). Spot DWP is now USD 1,140/t.