Research
The content listed is not for investment, financial, accounting or tax advice and is provided for informational purposes only.
Forestry & Paper: Stora Enso Q3 21A Insights
Key message: Strong results with EBITDA up 73% y/y and 9% q/q. Demand for FBB (Sappi read-though) and testliner was slightly weaker, while demand for kraftliner and corrugated (Mondi read-though) was stable. The Paper Segment EBITDA was in the red, impacted by restructuring and higher input costs. Paper demand was slightly stronger q/q (SAP and MNP read-though).
Forestry & Paper: Textiles Fibre Update
Key message: Hardwood DWP drops 5% w/w to USD 950/t, while VSF price is up 10% w/w. This means the VSF/DWP spread is now up 23% YTD.
Calgro M3 – 1H FY22 Results
Key message: With the restructuring complete margins and profitability are improving, with a strong 2H expected.
Forestry & Paper: Industry Price Update
Key message: Pulp prices under further pressure in China. CWF price up 1.4% but CWF margins remain in the red as European pulp price rise further. Kraftliner and testliner up over 2.5% w/w.
AfroCentric Investment Corporation: Initiation
Key message: Most diversified healthcare company in SA remains focussed on growth and creating value for shareholders on undemanding valuation multiples.
SA Banks – BA900 Aug 21. Absa forges ahead
Annual growth rates in the SARB’s gross loans and advances category has accelerated from 1.2% in July to 1.9% in August and in value terms is now ahead of the prior peak seen in March 2020. Retail loan growth is faring far better than corporate (5.9% vs -3.3%) and has...
The South African Cement Industry
A Deep Dive In this presentation we have an in-depth look at the South African Cement industry (including aggregates and ready-mix). Download presentation here
Forestry & Paper: Textile Fibres Update
Key message: Spot hardwood DWP drops 4% to USD 960/t, while VSF price is up 15% since 30 September. This means the VSF/DWP spread is now up 14% YTD.
Forestry & Paper: Industry Price Update
Key message: Pulp prices under further pressure in China. UWF price up 1%, while CWF margins further in the red as European pulp price rises. Kraftliner leads containerboard gains for the week, up over 2%.
ADvTECH Ltd – A foundation for strong earnings growth
ADvTECH announced a solid 1H21 result with a 31% rise in normalised HEPS and a resumption of dividends (19c DPS). After six years of investment the company has slowed down capex spend and is focusing on increasing the utilisation rates of its schools. This is positively impacting margins, reducing debt and increasing free cash flow. Its Africa schools are for the first time positively contributing to EBIT and are poised for strong earnings growth. We see strong demand for private schooling and tertiary education in SA as the public sector offering is placed under huge strain and affordability gaps between ADvTECH and the public sector has narrowed considerably. We forecast 23% and 18% HEPS growth in FY21E and FY22E. We calculate a fair value range of R17.67-23.13/share.