MPACT Limited. JSE: MPT

Mpact shares

Background of Mpact

  • Mpact Limited is one of southern Africa’s largest paper and plastic packaging businesses, with market-leading positions in corrugated packaging, recovered paper collection, corrugated packaging, recycled cartonboard and containerboard, plastic jumbo bins, PET performs and styrene trays.

  • The company was formed in 2011 when it was demerged from Mondi Limited, with Mpact shares being listed on the Johannesburg Stock Exchange (JSE). The group has 42 operating sites in South Africa, Mozambique, Namibia and Zimbabwe, including 22 manufacturing facilities. Around 90% of trade is derived from South Africa.

  • The group consists of two broad business units, namely paper (which comprises the recycling, paper manufacturing and corrugated divisions) and plastics (which manufactures a range of plastic packaging products for the food, beverage, pharmaceutical, retail, homecare and agricultural markets).

  • Mpact employs more than 5000 people and has a JSE market cap of R5.6 billion. The live online stocks chart shows that Mpact share price has declined significantly on the JSE.

Mpact Shares Growth Driver

  • Mpact recorded stellar financial data in 2015, with revenue increasing by 10% to R9.5 billion and underlying operating profit up 21% to R909 million, with dividends increasing strongly. This was largely driven by a growth in volumes within the plastics division, along with effective cost containment and benefits from the restructuring of the fast-moving consumer goods business in 2014. This business managed to increase underlying operating profit by 50.8%.

  • The group has focused on investing in new plant and equipment which has not only increased production volume, but saved on electricity usage. Two major capital projects are also progressing well, namely a R765 million upgrade to the Felixton paper mill in KwaZulu-Natal and a new R350 million recycled polyethylene-terephthalate (rPET) operation.

  • Mpact share price plunged in 2016 on the back of less impressive performance for the first six months of the year. Underlying operating profit decreased by 7.4% to R292.1 million on the back of lower production and sales volumes, along with delays in the development of the new rPET plant. This caused operating profit in the Plastics business to decline by 20%. Volumes in the paper business declined by 6.6% due to a large competitor increasing container board production.

  • Supply and demand imbalances within the domestic recycled containerboard sector are expected to be addressed with the Felixton mill upgrade. May 2016 saw the group buy Remade Holdings, which should complement Mpact’s drive to expand.

Mpact Group Investor Tip

  • Mpact shares have plunged from a high of R51 in April 2016 to R33 by September 2016. Mpact has some work to do to encourage investors to buy shares. The forecast for the short-term is that trading conditions will remain subdued, with the effects of excess recycled container board capacity, as well as higher tax rates,expected to exert pressure on profits. The new capital projects are expected to begin turning profits in 2017, with Mpact share price and performance anticipated to benefit. Investors who buy Mpact shares will also benefit from numerous customers being exposed to the export industry.

Mpact Major Shareholders

Government Employees Pension Fund, Visio Capital Management, Public Investment Corporation, Prudential Portfolio Management.

  • Sector

    Materials

  • Industry

    Containers & Packaging

  • Sub industry

    Containers & Packaging

How to buy Mpact Group Shares

  • Mpact : How to buy Mpact Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Mpact Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Mpact Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Mpact Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Mpact Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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