<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The last 12 months have been a turbulent time for Maple Leaf with margins plummeting (GM down 23ppts Y-o-Y in 2Q), mounting financial charges, and the recent rights issue (to support the balance sheet). While its expansion has cost Maple an arm and a leg, we believe it is heading in the right direction. While higher finance costs coupled with weak prices and cost pressure are impairing earnings, increased capacity is translating into strong revenue growth. More importantly, the market is completely ignoring its improved efficiency (coal power plant leads to minimal dependence on the grid, increased usage of pet-coke). This, in our opinion, is a major competitive advantage that Maple enjoys over its peers. Additionally, we believe Maple&rsquo;s penetration...
