Intereuropa 1Q18: Strong results, but investors are likely more awaiting M&A newsflow.
Sales grew 9.5% YoY to EUR 38.8m while EBITDA grew by 6.4% to EUR 3.6m. This is above companies plan while company reported strongest 1Q in years. This translated into profit of EUR 1.2m, 55% more YoY and more than double of management plan. Net debt was further reduced by 4.9% to EUR 55m (pure net debt ex investments EUR 66.1m). Multiples are lowering while economic environment remains favourable (adjusted EV/EBITDA 9.2x, P/E 14.7x). In addition recent intent to buy Gorenje at hefty multiples are likely to improve sentiment on LJSE and on similar acquisition candidates (note a sale process for majority stake in Intereuropa is in place). We are consequently upgrading recommendation to buy while target price is raised to EUR 2.8. However note that debt overhang is still there as adjusted net debt to EBITDA is at 4.3x while pure net debt to EBITDA at 5.1x. With lower liquidity investors need to be careful.
Intereuropa dd is a Slovenia-based company engaged in the provision of logistic services. The Company provides its services in three divisions: Land Transport, covering groupage, express transport, road transport, railway transport, customs services and distribution of spare parts; Intercontinental transport, including air transport, sea freight, shipping agency and automobile logistics; and Logistics solutions division, involved in the storage, distribution and logistics projects. As of December 31, 2011, the Company operated through 16 subsidiaries and one joint venture in such countries as Slovenia, Croatia, Bosnia and Herzegovina, Macedonia, Serbia, Kosovo, the Russian Federation, Ukraine, Montenegro, Albania, Germany and France.
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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