Post initiation, we discussed MPE and our investment case with investors (holders and non-holders). The majority agreed with our positive stance on the stock, with investors quoted as saying “reliable cash generating business” and noting the strong dividend history. There were, however, some key areas of investor pushback which focused on the sharp share-price rise and CPO-price movements prompting fears that investors may have missed the boat. Linked to this view were concerns on growth prospects in the event of a significant fall in CPO prices. Opinions on ESG were very polarised with investors being at the opposite ends of the spectrum despite the company being very transparent on its sustainability credentials. We discuss these views in this note but make no changes to our forecasts or recommendation.
