Navigator: US tax duty risk removed
Following the news that the US tax duty that affected Navigator’s paper exports was revised from 37.34% to 1.75%, we reiterate our Buy rating on Navigator and raise our FV by Eur0.3/sh to Eur5.5/sh, giving 34% upside. Our 2018 EBITDA reported estimate goes up by Eur63m as we have adjusted the one-off hit in 2018E from Eur66m (when the US tax duty had originally been set at 37.3%) to Eur3m (revised to 1.75%). Besides this major reduction in tax duty eliminating an important risk for Navigator, our case remains unchanged. The company is still benefiting from strong pulp & paper prices and we think this momentum should continue in the coming quarters. As pulp prices are at record highs, we see room for paper prices to go up and announcements of price rises are likely to be implemented. Multiple wise the shares are trading below its historical multiples with P/E 19E at 10.6x and EV/EBITDA at 6.9x.Navigator and its subsidiaries are engaged in the production and sale of cellulose pulp and related products, the purchase of wood and agricultural and forest production, the harvesting of forests and the transport of wood from the forests to the plants, and the production and sale of electricity and thermal energy. Co. is also involved in the production of paper and derivative paper products.
Haitong is the first international Chinese investment bank and our goal is to be the primary channel for capital flows into and out of China. During 2015 the Senior Management Team in London was expanded significantly to focus on this objective and to provide a full-service cross-asset markets business coupled with sector-focused investment banking. We work closely with our world-wide network of offices to bring a true depth of understanding to all client situations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.