Research
The content listed is not for investment, financial, accounting or tax advice and is provided for informational purposes only.
WBHO – 1H FY22 Results
Key message: The cost of exiting Australia is high, but the balance sheet is still strong enough to support the remaining businesses.
Forestry & Paper: Mondi Russian Insights
Key message: Some global Forestry & Paper companies with Russian assets either have stopped or intend to stop production on the back of inadequate supplies of critical raw materials.
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Forestry & Paper: Mondi FY 21E Insights
Key message: FY 21E results overshadowed by Russia invading Ukraine. Assuming no earnings (and cash extraction) from Russia, this would reduce our FY 22E EPS by 21% to EUR 1.59/share (+10% y/y), with net debt/EBITDA of 1.1x (before the Personal Care Components disposal). Under this scenario, our target price would be reduced by 18% to R 349/share, 13% higher than the CMP.
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Forestry & Paper: Textile Fibres Insights
Key message: Cotton in the red, while Polyester and VSF in the green. VSF inventory days down to 19 & the average op. up to 84%. VSF theoretical profit further in the red at -USD 58/t (VSF/DWP spread +16% YTD). Spot DWP is now USD 925/t, with upside from current levels.
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WBHO – End of Australia
Key message: WBHO has indicated the end of financial assistance to WBHO Australia, with the impact of putting WBHO Australia into administration. We attempt to assess the cash impact to WBHO of the announcement.
Forestry & Paper: Industry Insights
Key message: Further gains for pulp prices. CWF prices up 3%. Paper Packaging grades stable, with the exception of OCC, which was up 2%.
Forestry & Paper: Mondi Personal Care Components Disposal
Mondi is set to sell its Personal Care Components (PCC) business to Nitto Denki Corporation (6988 JP Equity): The disposal includes four companies, Mondi Gronau, Mondi Ascania GmbH, Mondi China Film Technology Co. Ltd and a newly established company for the PCC...