It’s over 2 years now since I made this comment. Unfortunately, their tech/digital vision did not pan out, while SFA has not made much money yet though they seem to be executing well (based on management commentary). With NEP policy long delayed and at least a year away along with other challenges, publications business has not seen much growth.
Stationery exports should have been the trigger for rerating as I had mentioned then. Unfortunately, they faced some trade restrictions due to US policies and lost a good chunk of potential stationery revenue. Seems to be sorted now. It’s pretty much a stationery exports and to a lesser extent domestic stationery growth play now as the legacy publications business is unlikely to see much change over the next 6-9 months.
I had mentioned this as a two-year hold then, I would say that’s extended further now. That said, their K-12 investment has turned out be excellent allocation of capital. Anything unexpectedly positive on SFA will be a bonus.
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