Zotefoams Share Discussion Threads

[geraldus] 01/7/2022 09:43

This time I am following a canny scot CEO who obviously sees value.

[ali47fish] 01/7/2022 09:38

geraldus explain your top up rationale please

[geraldus] 01/7/2022 08:05

Yes,followed him with a top up.Showing as a sell.

[ali47fish] 01/7/2022 07:24

dir buys 15000 shares

[clocktower] 28/6/2022 18:43

Not the best of news for ZTF stockholders:

[clocktower] 24/6/2022 13:31

Its been a month and I doubt if anything has changed, other than just the market in general. The only weak link might be to do with Jiangsu Province, China (T-FIT)if there is further fallout from Covid or because of China's policies/actions.

Is the growth likely to continue, other than in price - that is the concern imo but the air line business must be getting back on its feet and that could improve profits as the prices were always at the top end for this sector.

[geraldus] 25/5/2022 07:11

With the current economic conditions that is an excellent statement.Firing on all cylinders but could still be in for a rough ride ahead.If there is any fall off I hope it can be countered by positive news from ReZorce.

[edwardt] 19/5/2022 22:02

That would be good. Been painful hold. They need to improve their ROCE - it screens way too low for a company of this potential

[geraldus] 18/5/2022 17:04

Brisk trading to end the day.Something afoot?If not it's next Wednesday for the Agm update.Hoping for an European launch partner for ReZorce to be clarified for the coming months.

[clocktower] 17/5/2022 10:01

News needed to stop the rot.

[clocktower] 11/4/2022 16:39

Is this the next little step upwards, and will it continue?

[edwardt] 25/3/2022 16:11

Or the conveyor belt

[redartbmud] 25/3/2022 09:40

Yes a good recovery to a more reasonable valuation.
They are quite clearly working hard to expand their markets at a time where some of their customers are having difficulties.
Fingers crossed that we get positive updates going forward, but projects can take a long time to get off the ground.

[battlebus2] 25/3/2022 09:27

Shares still climbing.

[garth] 22/3/2022 16:15

Good presentation.

Margins hit and sounds like they are going to contuinue to take some work. Still going to be some time for ReZorce.

My feeling is that it might still take some time - but they are well positioned for growth as market conditions improve.

Electric vehicle battery project being worked on - nice titbit.

G.

[geraldus] 22/3/2022 11:48

Good rebound so far bearing in mind it had weakened beforehand.Maintained divvy and if ReZorce should come to fruition it could dwarf the rest of the business.Look forward to the meeting.

[battlebus2] 22/3/2022 09:32

Looks like it may finish flat on the day. 🤞

[clocktower] 22/3/2022 09:30

I can see it going down even lower than 200p - in fact with the factory in Poland and the huge amount of sales that are now generated in China anything could happen with the current world risks.

China is a even bigger problem than Russia imo and the West must start moving production and not relying on cheap labour in China as they start to try to dominate the far East.

[battlebus2] 22/3/2022 08:27

Can’t see it drifting that low.

[its the oxman] 22/3/2022 08:21

Disappointing results/outlook, could drift nearer to 200p now.

[garth] 21/3/2022 10:34

hxxps://www.zotefoams.com/investors/

Link to Investor Meet on there. Presentation tomorrow.

G.

[km18] 15/3/2022 17:21

...from last year...

Company overview:

Zatefoams is among the pioneers in cellular materials and is currently the largest manufacturer of lightweight crosslinked polyolefin block foams. In simpler terms, the material is used for thermal, sound and vibration insulation. With legacy approaching one century, the company has the ambition to be the leader in the sector through innovation and adoption of unique technologies. Management’s ambition is to achieve this goal through organic growth methods, combined with strategic acquisitions. The good news is that sometimes statements lead to a very asset heavy balance sheet, that’s not the case. Very few acquisitions, means nearly no goodwill to impair and eat the profits.  The small cap is benefitting also from great diversification of products provided and exclusive agreement to supply Nike.
Trading in 2021 is proving to be strong, evidenced by both the trading update in May and the Interim results posted on 10th of August. In May there was a 60% increase in revenue for the comparable period in 2020. Strong demand, and positive momentum from licences is driving the interim group revenue 39% above H1 2020, at £48.2m. PBT, got to £4m, 48% above H1 2020. Stable financial position provided the base for the slightly increase interim dividend. The only thing putting pressure on the profitability is the inflation of prices of raw materials, bringing down the gross margin to 28.9%, from 34.8%. The time frame of this inflationary pressure brought by C19 is unknown, keep your eyes opened for further lockdowns. Management expects the momentum in sales to persist in the second half, based on strong order book and ameliorating economic conditions. For adequate decision making, we should consider the high capex, as it forces the cashflow in the red. If CapEx is for growth, the stock is very attractive, with the possibility of net debt going down and margins increasing.

Projects:
Company has invested in a factory in Poland, which should bring down the high levels of Capex and increase the ROCE.

Short analysis (interim):

Cash was down compared to last report in December by 21%
Net debt did not change and is still positive
CA/CL =  1.5
Cash ratio = 0.16
Interest coverage (Annual 2020) = 13.9
P/S = 2.61
BV ps = 194, growing at 11.1% CAGR
Operating profit was £4.65m, 48% above H1 2020
Gross profit Margin = 28.9%...

...from WealthOracleAM

[edwardt] 11/3/2022 16:37

hmm ztf is trading at or jsut below replacement value. this seems bonkers to me.

[pockstones] 01/3/2022 20:16

Reading the link the cartons are incinerated not recycled this is greenwash of a vibrant hue by Tetra Pak

[clocktower] 01/3/2022 16:12

garth, I think Jersey uses the same type of carton, I have found a link which provides a lot of information.



"Jersey Dairy’s milk cartons have taken on a totally new look since the launch of their ‘brown cow’ fresh milk carton in 2020. The milk cartons are manufactured by Tetra Pak, and the new Tetra Rex® Plant-based cartons are made with renewable materials, and are Carbon Trust certified – the paper coming from Forest Stewardship Council certified forests and other controlled woods, and the inner layers made from sugarcane, instead of fossil material, reducing carbon emissions by 22%."

ZTF's Polish factory might have supplied some products to Ukraine I guess and could be hit if the war escalates any further.