Surge may be over for now
How Sappi changed its spots and its fortunes
With the share having shot up to around R100 recently, some investors could just have missed the boat
Around 30% of Sappi shares are held by the Public Investment Corp, the Government Employees Pension Fund and the Industrial Development Corp — and that is a fat vote of confidence in the group from government. This is, after all, a company that has struggled to appeal to the broader market in the years since the global financial crisis began. This is probably because it took seven years to more than double from below R20 to about R40 between 2009 and 2015. Now, having shot up to around R100 more recently, it’s been deemed a great-value share. Sappi delivered "robust" full-year results to September 2017 on "strong growth" from speciality packaging and its dissolving wood pulp business. Full-year profit of $338m rose from $319m in 2016. The group has further reduced debt in the period, as it continues to reorientate operations away from the core business of fine-coated paper used in upmarket advertising and publishing materials. The focus now is on high-margin dissolving wood pulp, al...
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