Highlights:
- The CROBEX up by 0.78%, HRK 25mn in total equity turnover
- ENT – summary of our company report
- Adris reaches almost 10% market share in Serbia, margins to suffer in 2010
- Magma announced list of shareholders to participate in the capital increase
- INA to negotiate individually on entrance in Adria LNG consortium
market comment:
The Croatian equity market saw another stabile day in terms of liquidity with around HRK 25mn in turnover on Wednesday. Equity indices CROBEX and CROBEX10 went up 0.78% and 0.72%, respectively, with especially strong upswing seen towards the end of trading session. The most liquid stock of the day was T-Hrvatski Telekom with almost HRK 10mn in turnover and a price slip of 0.6%. T-HT along with Atlantic Grupa was the only losers among top ten most liquid stocks yesterday. Significant upswing was seen yesterday in majority of construction companies fostered by ongoing speculations on Montenegrin deal. Among the sector gainers, Institut IGH, Ingra and Tehnika, had the strongest growth of 3.5%, 3.25% and 3.1%, respectively. However, winner of the day prize goes to fertilizer company Petrokemija which went up 7.6%, on a turnover of HRK 0.37mn. There were a limited number of liquid losers among which we can sort out oil and gas pipeline management company JANAF with price drop of 0.8% and around HRK 280,000 in turnover.
market outlook:
Mixed session could continue on the Croatian equity market.
Corporate news:
ENT – summary of our company report
(Hold, target price: HRK 1,549; current price: HRK 1,500)
Incorporating ENT’s FY09 figures and the proposed dividend payout for 2009 lead us to a target price of HRK 1,549.9 and a Hold recommendation. Combining the dividend yield with our derived upside potential, ENT would offer a total return yield of above 10% for the coming 12 months. The proposed dividend per share of HRK 120 (HRK 20 basic and HRK 100 bonus dividend) for 2009 yields 8%, which is a sound return and underlines the company’s ability to generate plenty of cash even in a difficult environment. ENT has managed to almost double its net cash position to HRK 524mn y/y, despite paying out almost HRK 100mn for 2008. Although we do not expect ENT to return to its pre-crisis growth path, we still think the company is a strong cash generating unit that will continue to please its shareholders with strong dividends in the years to come. Our new EPS estimates for 2010- 2012e are HRK 109.99 (from HRK 134.89), HRK 123.94 (HRK 140.78) and HRK 134.00 (HRK 168.41), respectively. Daniel Lion CIIA, +43(0)50100 17420
Adris reaches almost 10% market share in Serbia, margins to suffer in 2010
Croatian tobacco company announced sale data for 2009 on the Serbian market. According to announcement, market share of Adris is Serbia reached almost 10% with 1.6bn sold cigarettes (EUR 20mn in revenues). sales increased 49% within the last three years. Year 2009 has been especially active for the company, as new products MC brand, limited edition of Walter Wolf and modified edition of Ronhill have been introduced. Year 2010 should be tougher for the company as Serbian Government introduced 10% higher taxation on tobacco products. As company decided to keep prices unchanged, margins will most likely suffer. Margins have already been under some pressure during 2009 due to turmoil on the domestic market regarding excise duty legislation and smoking prohibition. Now it seems that such trend is spreading in the Region, as well.
Magma announced list of shareholders to participate in the capital increase
Croatian retailer Magma announced invitation for AGM to be held on April 19, 2010. The key item on the agenda should be the approval of HRK 114mn capital increase via private placement of 2mn new shares without a preemptive right for current shareholders. management Board and Supervisory Board proposed a list of top 26 shareholders as of March 1 (each having more than 1,000 shares in possession) which will have a right to participate in this capital increase. This proposed shareholders' list represents 92.37% stake in the founder's capital. Reason for such excluding tender is the intention to avoid making a prospectus. Price proposed for capital increase in HRK 57 per share, which is 14% above the current market price.
INA to negotiate individually on entrance in Adria LNG consortium
Ministry of Economy made a recommendation to Croatian companies INA, HEP and Plinacro to enter Adria LNG consortium separately instead of previous joint entrance through LNG Croatia. INA will participate with 14% stake in this EUR 800mn worth project of construction of LNG terminal on island Krk, which is in line with its previous stake. Formal construction work should start in year 2014 after all preparation work and studies are made. Annual capacity of a new terminal will be 10 million tons of natural gas while this project should secure stabile income of EUR 1.8bnn throughout 30 years of exploitation.
CROBEX (chart, table)
Top 10 Turnovers (table)
Top 5 Winners (table)
Top 5 Losers (table)
Croatian Equity Daily (table)
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To view the original document, please click on the link below:
http://reports.aiidatapro.com/CBB/ErsteSecurities/Daily_11_03_2010.pdf
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Copyright: Erste Securities Zagreb, sales : Zeljka Kajkut-Brni Phone: +385 62 37 2811 kajkutz@erstebank.com Damir Eror Phone: +385 62 37 2813 erord@erstebank.com Research: Damir Cukman Phone: +385 62 37 2820 cukmand@erstebank.com Davor Spoljar Phone: +385 62 37 2825 dspoljar@erstebank.com
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