TIM 0.00% 4.4¢ timbercorp limited

SHAW Analyst Comments

  1. zwu
    2,417 Posts.
    lightbulb Created with Sketch. 9
    SHAW Analyst Comments: Timbercorp sales
    May 1, 2002
    Company Contact


    Believe the industry outlook & general sentiment has improved, which is positive for TIM.

    *Sales

    Sales for 02 ahead of previous years, with strong inquiry levels, especially almonds (400 ha already sold) & new portfolio product. This will be helped by a reduced level of competing products, with around 45 projects in 02 (80 in 01 & over 100 in 00).

    *Projects

    TIM’s 3 projects are in the top 7 of Agribusiness Research’s evaluation.
    Currently looking for project sales up to a maximum of 6,000 ha of timber, 1100 ha of almonds & 650 ha of Olives, which could generate over $60m of project revenue.

    Could expect a further 2 years of sales at current levels from current almond & olive capacity, before looking for further projects. Is looking at 3 new project areas, based on tight criteria of risk acceptable returns & guaranteed offtake.

    *Recurring revenue

    Expects projected recurring revenue to exceed project revenue in 2004 onwards.

    *Franking credits

    Has a similar level of retained franking credits to Great Southern, who recently paid a special dividend of 30¢ ps, looking for an efficient way to distribute these.


 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.