Research
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Mpact – 1H FY21 Results
Key message: Volumes recover well with paper margins boosted from switching low-margin paper exports to the local market. Some cost pressures should be recovered through price increases in 2H.
Forestry & Paper: Sappi Q3 21E Insights
Key message: Strong Q3 expected. However, Q4 key for SAP in terms of capturing the benefit from higher DWP prices. In South Africa, we estimate a Q4 EBITDA impact of USD 0.5mn for every ton of DWP.
EOH – Meeting with Management
We recently met with various executives at EOH to better understand and appreciate the changes to the business since last meeting the company in 2018, prior to the appointment of Stephen van Coller as CEO. In the past two years it is one of the most reported on SA...
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Forestry & Paper: Textiles Fibre Update
Key message: Strong week for textiles with VSF, cotton and polyester all in the green. VSF op. rate improved to 76% & inventory days down to 23. DWP prices likely to remain stable.
Forestry & Paper: The Navigator Company Q2 21A UWF Insights
Key message: Positive read-though for Mondi. UWF volumes recover significantly, with Q2 sales reaching 2019 levels & June marks NVG’s highest UWF order book ever for this time of year.
Forestry & Paper: Smurfit Kappa H1 21A Packaging Insights
Key message: Positive read-though for Mondi. Corrugated volumes +10%. H2 to see continued strong demand & corrugated price recovery. Containerboard stocks remain extremely tight.
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We initiate on Italtile with an Overweight recommendation and a Target Price of R20.50.Italtile is a franchisor, manufacturer and retailer of tiles, sanitaryware, bathware and other related home-finishing products.Key businesses include:Retail (127 stores): Retailer...
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We initiate on Hudaco with an Overweight recommendation and a Target Price of R166.Hudaco imports and distributes high-quality branded automotive aftermarket, industrial and electronic consumable products mainly in the southern African region.Hudaco businesses serve...
Forestry & Paper: Textiles Fibre Update
Key message: VSF, cotton and polyester in the green. VSF op. rate stable at 74% & inventory days down to 24. DWP/pulp spread likely to keep DWP prices stable.