Avior Capital Markets - Mondi Limited (A1JBPG) Mondi | Projects prove enticing

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Avior Capital Markets

Wade Napier

Mondi | Projects prove enticing

Stora Enso (not rated) took another step towards progressing will its previously announced Oulu conversion from coated woodfree to kraftliner. Virgin containerboard is Mondi's key packaging grade and the market may enter oversupply upon the completion of the Oulu conversion. In this note, we highlight that despite selling prices declining 10% in four months, new containerboard projects appear to still offer attractive returns. Accordingly, Stora Enso's Oulu mill may not be the last new project to be announced as producers overlook supply concerns and focus on returns.

19/03/2019 9 EN

Underlying

Mondi Limited

Mondi is a packaging and paper company. Co. is structured into two divisions. Co.'s Europe & International division include: packaging paper, which manufactures and sells a range containerboard and sack and kraft paper; fiber packaging, which manufactures and sells a range of corrugated packaging products, industrial bags and extrusion coatings; consumer packaging, which develops, manufactures and sells consumer packaging solutions, films and release liner; and uncoated fine paper, which manufactures and sells papers for use in printing. Co.'s South Africa division manages forestry operations and manufactures and sells pulp, containerboard, uncoated fine paper and newsprint products.

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ZAE000156550 United Kingdom

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Wade Napier

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Mondi | Projects prove enticing

Monthly LMI Update Independent Investment Research

Feasibility Study Results in December to be a Catalyst for this Junior

Mondi | No more than a hangover

Tiger Brands | ESG | Pressed to execute

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