Research
The content listed is not for investment, financial, accounting or tax advice and is provided for informational purposes only.
SA Banks
BA900 – Oct 21. FirstRand showing signs of life again Annual growth rates in the SARB’s gross loans and advances category decelerated from 3.7% in September to 2.5% in October, declining in value in October. The decline emanated from Corporate lending which...
F&P: Textiles Fibre Insights
Key message: Cotton and polyester improve, while VSF and DWP under further pressure. VSF inventory days up to 27.5, while the average op. rate declines to 76%. VSF theoretical profit improves but still firmly in the red at -USD 68/t (VSF/DWP spread +7% YTD). Spot DWP is now USD 905/t.
Cement Import Monitor
Key message: October imports fell significantly to 35kt, well off September levels. This is a more expected outcome following supply chain disruptions.
F&P: Industry Insights
Key message: Klabin expects kraftliner prices to hold in 2022 and sees improvement in pulp demand in China.
EOH – Good to Go
After three years of rightsizing and focussing the business, EOH has returned to profitability with an EBITDA from recurring operations of R471m in FY21. The group is significantly leaner following the exit of many businesses - its revenue of R6.9bn from recurring...
F&P: Textile Fibre Insights
Key message: Textiles under further pressure. VSF inventory days up to 26.5, while the average op. rate improves to 77%. VSF theoretical profit firmly in the red at -USD 85/t (VSF/DWP spread +7% YTD). Spot DWP is now USD 910/t.
F&P: Recovered Paper Insights from the 2021 ICC
Key message: Global OCC markets have been strong during 2020/21. With the recycled containerboard share of global supply set to increase, coupled with insufficient fresh fibre entering the system, we expect OCC prices to remain elevated and accordingly support containerboard prices.
Murray & Roberts – Trading Update
Key message: Management point to entering a multi-year period of strong earnings growth, which concurs with our forecasts. Delivery on the strong order book will be the key valuation factor going forward.
Lewis Group – Capitalising on change
Lewis Group has undergone significant positive change in six years as it transforms back to a retail revenue driven business, instead of financial services. Of its revenue earned in FY14, we estimate 58% was from financial services – in FY21 its 45%. Credit sales now...
FORESTRY & PAPER: Industry Insights
Key message: Pulp prices stable but EUR/USD drives Europe pulp up 1% w/w. Graphic Paper grades up 1-2% and containerboard prices takes a breather.