SIF Moldova proposed a 2012 DPS of RON 0.17 (positive)
SIF Moldova (SIF2) has called a GSM for April 4, 2013. One of the main topics on the agenda is the proposal to pay a DPS of RON 0.17, which implies a payout ratio of almost 65% and a current dividend yield of 11.5%. This stands slightly higher compared to the guidance offered by the Board at the end of January (DPS of RON 0.15). Ex-dividend proposed is April 18. During the GSM, shareholders will also select the new members of Board for a four year term. Given that the DPS stands above the initial guidance and above our estimate of RON 0.159 we rate the news as positive.
Additionally, SIF2 will also hold an EGSM during the same day when it is proposing its shareholders the initiation of a share repurchase program for 10% of the share capital (51.9 mn shares) at prices of max. RON 1.6. Repurchased shares would be canceled. SIF2 also intends to modify its bylaws by changing the quorum requirements for the EGSM from 75% at the moment to 25% for the first hearing and from 50% to 20% for the second hearing. A buy-back program would be positive for the share price, but we believe there are limited chances for quorum to be reached.
Prospectiuni 4Q 2012 results: good top line performance but disappointing bottom line
The seismic data acquisition company Prospectiuni released only some key figures for 4Q 2012 results. Turnover stood at RON 102 mn, one of the best quarterly figures in the last five year (+2% yoy and some 10% above our estimates). Lacking other information we can only assume based on public auction websites that most of the works were performed for traditional partners Romgaz and Petrom. Cost structure was not provided, but PRSN reported an operating loss of RON 1.5 mn, while we were expecting operating gains of RON 6 mn. The company reported gross losses of RON 1.6 mn vs. financial gains of RON 5 mn during 4Q 11. Over 2012, sales stood at RON 314 mn, flat yoy, while gross profit almost halved yoy to RON 24 mn.
Although we view the increase in sales as positive, the weak performance of the bottom line is disappointing and we rate the results as negative. We will revise our estimates and place our RON 0.27 TP under review, but we intend to keep our "buy" recommendation.
Last year, PRSN distributed dividends for the first time since being listed on the stock exchange (payout ratio of approx. 15%). If we consider a similar payout ratio, DPS should stand close to RON 0.0042, which translates into a dividend yield of approx. 2%, however the payout could be slightly higher.
Teraplast reports weak 2012 preliminary results (negative)
Teraplast (TRP) published its un-consolidated 4Q financial results under IFRS. The quarterly results were so far available only under Romanian Accounting Standards so we stick to comparing the annual results.
Revenues increased by 14% yoy to RON 240 mn, while raw material and merchandise costs rose by 18% yoy to RON 176 mn. The company registered some downward adjustments for the assets of the Teracota business line amounting to RON 7 mn, which further hurt the profitability. Due to the revaluation of its fixed assets, depreciation increased considerably to RON 26 mn, while being also restated for 2011 (at RON 20 mn, up 43% yoy).
Thus, TRP reported a net loss of RON 15 mn, from RON 16 mn registered in 2011 (while before these restatements the net loss during 2011 stood at RON 9.5 mn).
We will provide additional details in our First Impression, later today but we view the results as negative and we put under review our target price and recommendation. We remind that under RAS, 1-3Q 2012 sales advanced by 9% yoy to RON 180 mn, while TRP reported a net loss of RON 1.4 mn.
Rompetrol Well Services reported solid 2012 results
Rompetrol Well Services (PTR) reported its IFRS preliminary 2012 results. As quarterly results are available only under RAS we stick to comparing the annual figures.
Sales for the year were up 4% yoy to RON 97.8 mn, while the cost of goods sold decreased by 16% yoy to RON 57.7 mn. So despite a minor increase in administrative expenses the operating profit climbed by 50% to RON 23.3 mn and the net profit surged by 35% to RON 21.4 mn.
Over 1-3Q PTR reported under RAS sales of RON 77 mn and a net profit of RON 15.5 mn.
PTR paid last year 51% of its net profit as dividends. Using the same pay-out the dividend for 2012 would stand close to RON 0.039, offering a dividend yield of 9.5%.
Compa reported weak results for 4Q 2012
The automotive components producer Compa (CMP) has reported its FY 2012 results, under IFRS. Since several P&L items seem similar with the RAS ones, we will also comment on the quarterly evolution. While FY 2012 sales under IFRS came in at RON 499 mn, up 6% yoy, sales for 4Q 12 contracted an impressive 16% yoy as the company is starting to feel the negative evolution of the European car market. FY 2012 raw materials costs increased by 5% yoy to RON 308 mn, while salaries expenses stood at RON 83 mn, up 11% yoy. Nevertheless, staff expenses for the quarter decreased 1% yoy. Operating profit for the year was RON 34 mn, up 27% yoy but apparently operating profit has shrank 84% yoy during the last quarter, coming in at around RON 1.2 mn. FY 2012 net profit amounted to RON 22.4 mn, up 14% yoy, while the quarterly comparison is distorted by income tax. At pre tax level, profit for the quarter decreased by 75% yoy.
Alro – Net loss due to the accounting of the derivate embedded in Hidroelectrica contract
Aluminium smelter Alro (ALR) has reported its FY 2012 results under IFRS, with a huge loss due to the accounting of the derivate instrument embedded in the contract with Hidroelectrica for power supply. FY 2012 sales amounted to RON 2.3 bn, up 2% yoy, the company being negatively influenced by the decrease in aluminium prices. Cost of goods sold jumped 10% yoy to RON 1.9 bn, mainly due to higher prices paid for power. Thus, operating profit has contracted 30% yoy to RON 288 mn. The main surprise of the results was a net financial loss of RON 475 mn, compared to RON 150 mn, one year ago. ALR booked a loss of RON 381 mn, due to the accounting of the derivate instrument embedded in the contract with Hidroelectrica (probably the provision linking power price paid to aluminium prices). Thus the company reported an annual net loss of RON 170 mn, compared to a profit of RON 218 mn in 2011.
Ropharma reported a solid performance during 4Q 2012
Pharmaceutical retailer and distributor Ropharma (RPH) reported its 2012 preliminary results under IFRS. While quarterly results were reported under RAS until now, differenced seem minor and we also comment on quarterly evolution. Thus, over 4Q 12, sales slightly dropped by 1% yoy to RON 104 mn, while cost of merchandise, the main cost item dropped by 5% yoy to RON 76 mn. Thus, EBIT improved significantly to RON 4 mn, up 50% yoy. Financial gains of RON 0.6 mn up from RON 0.1 mn during 4Q 11 helped the bottom line evolution and RPH reported a net profit of RON 3.2 mn, up 59% yoy. Over 2012, sales advanced by 7% yoy to RON 412 mn. The retail segment composed of 119 pharmacies, grew by 4% yoy and generated 71% out of these, while the remainder was generated by the distribution segment which increased by 15% yoy. Net profit over 2012 dropped by 21% yoy to RON 8.5 mn due to a slight increase of costs of merchandise and costs with newly opened pharmacies.
