Cinkarna Celje 1H17: Excellent result with Cinkarna Celje already surpassing its entire 2017 plan.
Due to good titanium dioxide conditions, namely higher demand, tighter supply and pricing increases, sales revenues are up by 7.6% YoY in 1H17 while EBITDA amounted to EUR 23.1, or up almost 96% while net profit amounted to EUR 14.0, more than double versus 1H16. In addition all indications point to the fact that second half of the year will also be strong, albeit some commodity cost could adjust. Nevertheless these results and industry estimates, as well as ever better visibility regarding environmental issues have contributed to our target price surge from EUR 205 to EUR 230. This warrants a buy recommendation. However we still believe, due to low share liquidity, specific ownership structure, past share price dynamic (possible headwinds after surpassing 200 mark) and heavy industry cyclicality that investors must be vary of the mentioned risks.
Cinkarna Celje dd is a Slovenia-based company, engaged in the production and marketing of titanium dioxide pigment. The Company's product range includes titanium dioxide and sulfuric acid; titanium and zinc sheets; zinc wire, alloys and anodes; printing plates, links and graphic preparations, as well as powder, rubber and anticorrosion coatings. Additionally, it offers construction and joint sealants; facade plasters; mortars and screeds; decorative plasters; protection, waterproofing and quick bonding agents; cement additives; copper and sulfur fungicides, as well as other chemical products. The Company operates through one wholly owned subsidiary, Cinkarna-Kvarc doo Tuzla, incorporated in Bosnia and Herzegovina.
ALTA Invest, investicijske storitve, d.d., (ALTA Invest, investment services, Inc.) is a part of ALTA Group, the biggest financial non-banking group in Slovenia. ALTA Invest has around 28% market share on the domestic Ljubljana Stock Exchange and has more than EUR 95m of assets under management.
Our trading advantage is our execution of large trading blocks with low impact on the market. We offer trading on several platforms on numerous markets, with a wide variety of financial instruments. Our advantage is also a research department, which is both sell side and buy side and has the far most extensive and regular coverage of domestic companies. We cover 9 companies on Ljubljana Stock Exchange, which is around 90% of Mcap on LJSE – and here we are practically the only local broker providing this kind of extensive and regular coverage for Slovenian companies.
A part of ALTA Group are ALTA Skladi, a mutual fund asset management company with roughly EUR 260m of asset under management. ALTA Group is also extensively involved in corporate finance projects and raised considerable assets (fixed income and equity) in the last two years for several companies.
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