Thanks to the positive results published by the company as of 3Q 2014 along with the recently published milestones regarding the MDF Project, Arrowhead increased the target price for Proteak’s OPCs (Ordinary Participation Certificates, or CPOs, for their name in Spanish), placing it in a range between MXP 22.58 y 24.70 as of November 2014.
This valuation is based on discounted cash flows and considers the company’s teak business as well as the development of the largest forestry-industrial project in the country: the first high-tech MDF plant, currently under construction in Huimanguillo, Tabasco. This plant will be fully supplied by eucalyptus from Proteak’s own certified plantations.
Proteak is the largest forestry-industrial company in Mexico and Central America. With over 18,000 hectares of plantations in Mexico, Costa Rica and Colombia, Proteak exports its products to over 15 destinations in North America, Europe and Asia.
