York Timber’s share price leaps as market reacts to first-half results
York Timber’s net asset value per share was R9.75 at December 31, indicating its share price is only about quarter of its book value.
The lumber producer’s share price rose 4% to R2.65 on Monday morning as the market reacted to its interim results, released late on Friday.
York reported interim revenue declined 3% to R922m for the six months to end-December, but after-tax profit nearly trebled, to R87m from R32m.
The results statement repeated past gripes that state-owned South African Forestry Company Limited (Safcol) was price gouging.
York said it had reduced the number of logs it bought from external suppliers by 48% while "utilising more of its own plantations on a sustainable basis".
"There was a weakening in industry lumber sales over the period, consistent with the slow local economic growth rate. The reduced demand impacted production of lumber, which decreased by 8% for the reporting period," the results statement said.
"Internationally the group has seen an increase in the demand for plywood and products with a high standard of specifications resulting in export volumes steadily increasing."