York Timber Holdings. JSE: YRK

York Timbers shares

Background of York Timber

  • York Timber is a South African manufacturer and distributor of timber products, with a history stretching back more than 100 years. The group today owns more than 60 000 hectares of commercial pine and eucalyptus forest in Mpumalanga and operates four sawmills, including the Sabie Sawmill, which is the largest in South Africa. The group also owns a plant for manufacturing plywood products and has offices in Gauteng, KwaZulu-Natal, the Western Cape, Free State and Eastern Cape.

  • The company operates through three segments, namely Processing Plants (including two divisions, Sawmilling and Plywood) Wholesale (responsible for sale of timber products from sawmills and the plywood plant) and Forestry (cultivates and manages forests on a rotational basis).

  • The company employs over 5000 people and recorded revenue of R1.7 billion in 2016. York Timber shares are listed on the Johannesburg Stock Exchange (JSE)with a market cap of R1.1 billion.

York Timber Shares Growth Driver

  • York Timber has secured the largest market share of the South African timber and plywood market, mainly as a result of sustainable biological assets, integrated operations and value-added processes. After several years of mediocre performance and a gradually declining York Timber share price, the group has undergone a long process of restructuring.

  • This resulted in the company achieving greatly improved financial data for 2016. Operating profit increased by 27% to R183 million, while earnings per share increased by 135% to 73 cents. Dividends more than doubled for the year. Revenue growth has been driven by a growth in market share due to targeted selling efforts, including expansion into the export market and earning foreign currency. The group also benefited from improved product mix, better efficiency from processing facilities, a recovery in the lumber price index and better value recovery from plantations. This was enhanced by reduction of stock levels and improved capital management.

  • York has decided to buy into a new multi-phase growth strategy. The first phase, the Plywood Expansion Project, involves taking advantage of potential plywood export opportunities to shield York from the weakening local currency. In the next phase, York is aiming to build a biomass power station, having already bid for the project in South Africa’s REIPPP programme. Management has forecast that this will significantly improve sustainability and yields from plantations. York also continues to seek opportunities to buy into acquisitions, while expanding existing capacity and investing heavily in technology.

York Timber Group Investor Tip

  • York Timber shares have traded well below the company’s net asset value per share. With the company recording some solid financial results, the 70% discount to net asset value makes York Timber shares an attractive buy for investors. Rising investor confidence has already seen York Timber share price climbing up the live online JSE stocks chart, and most investment analysts agree that there is still potential for upside growth. The shares offer a promising buy that should exceed the mediocrity of York Timber share price over the past few years.

York Timber Major Shareholders

Industrial Development Corporation, Lereko Investments, Coronation Asset Management

  • Sector

    Basic Materials

  • Industry

    Applied Resources

  • Sub industry

    Forestry & Paper

How to buy York Timber Group Shares

  • York Timber : How to buy York Timber Group Shares Online

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

  • Here are the steps you must follow to Buy / Purchase York Timber 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 York Timber.
    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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