Luka Koper 2017: Disappointing 4Q17, but overall adjusted 2017 data is strong.
Throughput grew by 6.2% YoY in 2017 which boosted Group revenues by 5.2% YoY. Adjusted EBITDA margin stood at 39.8%, providing a slight contraction and our estimate miss, albeit EBITDA grew by 10.9% YoY in 2017 vs 2016. However reported data was severely impacted by provisioning and impairments in the amount of EUR 19m. Consequently consolidated profit stood at EUR 34.4m, down 22% YoY. Second Railway Tier Koper-DivaÄa project is progressing slowly, but several milestones were achieved in the last year. As for 1Q18 data, throughput shows a slowdown, namely a YoY stagnation, however sales revenues still grew with a solid pace which bears some encouragement. Our revaluation, which also included re-examining the effects of second railway tier legislature and a possible adjustment of its outsourcing model, points to a target price of EUR 38 per share, implying a EV/EBITDA 6.8x, P/E 15.2x and P/B 1.5x. Current multiples are 5.5x, 12.1x and 1.2x respectively. Our buy recommendation therefore remains unchanged. True there is a key 2020-2030 period in front of the port, which bears upside and downside risks.
Luka Koper dd is a Slovenia-based company engaged in the provision of port and logistics services in the Port of Koper. The Company provides basic port services, such as sorting, palletising, sampling, protection, labelling, weighing, cleaning and other services; management of the economic zone; supporting services; cargo handling; warehousing, and integrated logistics solutions. Through its terminals, the Company handles general cargo, containers, vehicles, dry bulk cargo, liquid bulk cargo, cereals and fodder, livestock, minerals, timber, fruit, alumina, minerals and energy. The Company also offers terminals for cars, containers and roll on-roll off services. Additionally, the Company is engaged in hotel and catering services, as well as waste collection and recycling. As of December 31, 2011, the Company's subsidiaries included Luka Koper Pristan doo, Luka Koper INPO doo, Adria Terminali doo, TOC doo and Luka Koper Deutschland GmbH, as well as several associated companies.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.