Share price following the result, page-4

TFS Corporation (TFC) | Set for cash generation | BUY
Market Cap $619m | Current Price $1.60 | Valuation $3.30
Having met targets in FY16, TFC’s strong operational momentum has set the Company up for at least 25% growth in adjusted cash EBITDA in FY17 (to $78m+). Demand for plantation investment product is mirroring deepening end markets for wood and oil, with TFC’s vertically integrated business able to extract value along the supply chain. Attractive product pricing and returns are driving TFC’s focus on increasing plantation ownership in order to extract maximum value for shareholders. With >80% of 2016’s harvest on balance sheet we believe improved operating cash flow will be a feature of the FY17 numbers, providing a taste of the potential upside when harvest sizes ramp up significantly next decade. We maintain a valuation of $3.30 and a buy call.