The Q1 report released by Suominen yesterday was operationally better than we expected. The outlook for the near term is strong in terms of demand but increasing raw material prices will act as a break in the next few quarters. We see the upside in the share’s low valuation and 4% dividend yield offer a good expected return for investors even though we do not expect the result to grow from last year’s high level in the next couple of years.
Suominen manufactures nonwovens as roll goods for wipes and for hygiene products and medical applications. Suominen is the global market leader in nonwovens for wipes. The company employs nearly 650 people in Europe and in the Americas. The Suominen share (SUY1V) is listed on the Nasdaq Helsinki Stock Exchange.