Nordic Paper is a paper producer for Kraft paper (55%) and grease paper (45%). The company has a well diversified product portfolio and a customer mix across industries which supports quality of earnings. Although the demand from construction business is low.
The business is a quality investment with 50% gross margin and 30% ROE that operates in market supported by long-term trends like; sustainability, global middle-class growth and e-commerce. In 2022 and 2023 the company has delivered a high dividend yield (>10%).
Nordic Paper is a quality holding for the long term. In the short term I expect a correction that could offer buying opportunity around 35kr.