nampak sa’s leading packaging company full range of packaging in paper, metal, plastics &...
Post on 02-Jan-2016
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NAMPAKSA’s Leading Packaging Company
Full Range of Packaging in Paper, Metal, Plastics & Glass
NAMPAK• Current Share Price: R23• PE: 15• Dividend Yield: 3.7%• New Top Management• Good Recovery- Sold off Dogs• Potential enhanced profit from Angolan Bevcan & local Corrugated• Good Potential if Rand weakens• Strong Share Price & Volume Movement since results announcement• Worth considering over long run
SAPPI Leading World Producer of Coated Fine Paper
•Other Paper Products: Newsprint, Uncoated, Speciality , Packaging •Wood Pulp•Chemical Cellulose
SAPPIProduct Range
Production: Mil Tonnes: Paper 6.8 Pulp 3.3 Chem Cellulose 0.8
Geographic Spread
• Sales 7.9 Mil Tonnes$6.6 Billion
SAPPI DEBT PROBLEM Millions Nett Debt: $2221 Finance Costs: $ 255
Debt by Currency: % $ 48.4 Eur 34.1 ZAR 17.5
Debt Covenants: •Nett Debt/EBITDA: < 6 •EBITDA/ Interest: > 2
Dividend Restriction: •Debt/EBITDA: >4:1•EBITDA/ Interest: <2:1•Dividend > 50% of Nett Profit
SAPPI SHARE INFO:
No of Shares: 516 Million
Market Cap: $2000 Million
Shareholders: 12% N America 13% Europe & Rest of World 75% SA
Major Shareholders: PIC: 8.4% OM 5.0%
Fund Managers: Allan Gray: 30% OM: 13% RMB: 8%
Share Price: 2/12/10: R35.20 P E: 47 YM: 6.0%
Strengths: •Good Geographic Spread – Rand Hedge•Good Assets & Product•Technically Competent•SA Profitable•Saiccor Strength
Weaknesses: •Over Capacity in Paper Industry – Selling Prices constrained•Advertising spend sensitivity•IT Innovations threaten Paper usage•Debt Burden•Rising Input Costs: Energy
Currently: •Improved Pulp Prices•Paper Prices following •Strong demand•Mills full
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