Taking advantage of a discount and good fundamentals, Barsi makes new purchases of Klabin shares

An action in the pulp and paper sector once again attracted the eyes of one of the biggest investors on the Stock Exchange, Luiz Barsi Filho, who took advantage of the recent fall in paper prices to go shopping, apparently yesterday, as announced by his daughter Louise Barsi on social networks. , a share that “Barsi would be buying at the wheel” on Wednesday (27).

The choice of the investor, who received R$ 1 million in dividends per day for 2021 from his pension portfolio, is by an old acquaintance, who is even one of the biggest positions of the “King of Dividends”.

It is about Klabin, which in 2022, accumulates a 20.49% drop in KLBN4 shares and 21.96% in KLBN11 shares until the close of July 27, according to data from Comdinheiro. This Wednesday (27), the shares rose 5.47%, reflecting the good results of the quarterly balance, but not enough to erase the falls of the year.

The information on new investments by the mega investor in Klabin was revealed by Louise Barsi in a group of subscribers to the AGF+ (Ações Garantem o Futuro), an educational platform that systematizes the concepts used by Luiz Barsi to generate passive income.

According to Louise’s publication, ‘Klabin would be returning to sow good dividends’, which is why the ‘paper would have been the target of new purchases for Luiz Barsi’s portfolio’ and would also be on the radar to re-integrate the economist and founding partner’s portfolio. of the AGF+.

As justification for the purchase, Louise recalled that in 2020 Klabin grew its ‘share of revenues generated by the export of pulp’, a movement that brought volatility to the company’s net income, due to the exchange rate variation.

“This effect culminated, in many accounting losses in 2020, enough to make the accumulated losses account very negative in Shareholders’ Equity”, she pointed out in the comment.

According to the economist, although Klabin generated enough cash flow to pay good dividends, the company could not do so due to accounting reasons, which is why in 2021 the company did not pay good dividends to its investors.

Louise also highlighted that in mid-2021, Klabin approved a policy of hedge (protection) that would nullify the accounting effects of the exchange variation and allow that account in equity to be zeroed. “Nearly a year later, Klabin has delivered on what he promised and it finally looks like he will be able to consistently pay good quarterly dividends,” Louise pointed out on the platform.

Currently, Klabin’s dividend policy, published on the company’s investor relations website, establishes that the total amount of dividends or interest on equity corresponds to a target percentage between 15% and 25% of earnings before interest, taxes, depreciation and amortization (EBITDA).

Following the result, the company announced the payment of interim dividends in the amount of R$399 million, corresponding to R$0.07251721508 per common and preferred share, and to R$0.36258607540 per unit.

The payment of dividends will be made on August 11, 2022, with a cut-off date next Monday (1). This is the third consecutive quarter that Klabin has been able to honor its commitment to remunerate shareholders.

Klabin released its results last Wednesday morning, with a net income of R$972 million in the second quarter of 2022 (2Q22), 35% higher than that reported in the same period in 2021.

Adjusted Ebitda grew 11% in 2Q22, totaling R$1.990 billion. The adjusted Ebitda margin (Ebitda over net revenue) reached 39% between April and June, down 5 percentage points (pp) compared to the margin recorded in 2Q21.

The numbers were above expectations. The Refinitiv consensus projected a profit of R$ 302 million, a drop of 58% compared to 2Q21, an Ebitda projection of R$ 1.8 billion and an increase of 17% on an annual basis.

Also as informed by Louise in the commentary, “cellulose is at its historic peak and some corrections can be expected from now on”. With that, in a highly unpredictable scenario, Luiz Barsi Filho would be restarting the ‘repurchases at this moment and little by little’.

According to the projections of the AGF+ platform, in a favorable scenario for the company, the dividend projected in 2022 for Klabin would be BRL 0.24 per share, which would give rise to a ceiling price of BRL 4 for KLBN4 and BRL 20 for KLBN11.

Already pricing in a scenario of a decline in the commodity and observing a lower dividend of BRL 0.20 per year, the ceiling price established by the platform is BRL 3.33 for KLBN4 and BRL 16.66 for KLBN11.

See too:

Living off income: how to earn an extra monthly income of up to R$ 4 thousand with investments?

The economist also recalled that the KLBN11 unit shares have greater liquidity and are good options for those looking, in addition to the dividend, for share rental and operations with synthetic dividends. The lower-priced KLBN4 shares, on the other hand, would be more interesting for investors who are able to buy Klabin shares only in fractional terms.

wanted by InfoMoneyto comment on the reason for the purchase, Louise preferred not to give details and only said that “periodically she and Luiz Barsi are following the papers in their portfolio”.

After the good results, Klabin KLBN11 is on the radar of some houses. XP has a buy recommendation for the units, with a target price of R$31.20. While Itaú BBA also recommends the asset with a target price of BRL 29 until the end of 2022

Learn how to live off income with stock dividends and meet the champions in earnings of the last 5 years

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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