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Sappi Limited. JSE: SAP

SAPPI shares

Background of Sappi

  • With a history stretching back to 1936, Sappi Limited is a South African paper and wood products manufacturer which is today one of the largest companies of its kind in the world, employing 12 500 employees in 20 countries.

  • The group has four mills in South Africa, seven in Western Europe and three in the USA, annually producing approximately 5.3 million tonnes of paper, 2.5 million tonnes of paper pulp and 1.3 million tonnes of dissolving wood pulp. Products are available sold and distributed to more than 150 countries.

  • The group controls commercial timber plantations covering almost 500 000 hectares, which also provide sawn timber for the construction and furniture manufacturing industries.

  • Sappi shares are listed on the Johannesburg Stock Exchange (JSE) with a market cap of over R41 billion. A look at the live online stocks chart shows that Sappi share price has been one of the blue-chip stocks to buy recently, considerably outperforming the market.

Sappi Shares Growth Driver

  • Sappi’s stellar performance over the past few years has been driven by the group’s 2020Vision, which has set out a range of medium-term targets to substantially increase earnings. Expansion and global diversification of the product portfolio is key to the vision, with the group continuing to grow into a cash-generative and diversified woodfibre company.

  • The group has also focused on achieving cost advantages, rationalising declining businesses, growing through moderate investments and accelerating growth in adjacent businesses. Capital was spent lowering the cost base at key mills and reducing debt. Data for the 2015 financial year reflected an effective execution of strategy, with net profit increasing by 24% to US$167 million. The weak rand/dollar exchange rate benefitted South African operations, boosted by strong sales demand and average net sales prices. The group has decided to buy into energy efficiency and its specialised cellulose business, which remains the biggest contributor to profit. The waste-paper packaging Enstra and Cape Kraft Mills were put up for sale by Sappi in line with a strategy to focus on the virgin fibre packaging business in South Africa.

  • Other major currency movements negatively affected European business results. The once-off cost impact of major capital projects in Europe and North America also reduced profits, but should start contributing in the near future. Various disposals of businesses in these regions supported Sappi’s Vision 2020 goals.

Sappi Group Investor Tip

  • Sappi share price has performed exceptionally well on the JSE, registering a steady line up the stocks chart. The group has adapted well to constantly changing market conditions and continues to rake in good profits year on year. 2016 has been an especially good year for the company, with Sappi share price rocketing from R41 at the beginning of the year to R77 by October. More upside growth is forecast, and this should inspire confidence in investors looking to buy Sappi shares.

Sappi Major Shareholders

Allan Gray, Public Investment Corporation, Prudential Portfolio Advisors, Coronation Fund Managers, Investec Asset Management and Dimensional Fund Advisors.

  • Sector

    Materials

  • Industry

    Forest & Paper Products

  • Sub industry

    Paper

How to buy Sappi Group Shares

  • Sappi : How to buy Sappi Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Sappi 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 Sappi Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Sappi 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 Sappi 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)
  • Buy Shares with Confidence

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<a href="https://www.sashares.co.za/sappi-shares">Credits: SA Shares™</a>
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