Luka Koper 1Q18: Another strong start with 1Q18, albeit also due to one-offs in revenue level. However, news flow is spoiling it.
Throughput grew by only 0.4% YoY to 6.1m tons, however sales revenues grew by 5.6% YoY to EUR 56.3. EBITDA generated stood at EUR 24.7m, with margin of 42.0% vs last years 39.8% and 1Q17 41.8%. Net profit consequently amounted to EUR 14.3m, up by mild 2.8% YoY. All in all results look stronger that expected from top to bottom line. However this is also due to gain on sale of property and reversal of provisions, consequently a beat is lower than the headline suggest. Relatively speaking low valuation multiples consequently further lowered. However, news flow has been weaker in sense of obstacles regarding CAPEX plan (pier extension) and a lack of visibility regarding second railway tier project as elections are looming. Even more importantly, new IPS (port service providers) model publication indicates a high EUR 9m cost surge, while EUR 1.05 per share dividend proposal is below our expectation. All this is a concern and potential sentiment headwind while also a potential valuation downgrade risk. All in all we are for now sticking with our buy recommendation, albeit the preference of the shares have been lowered from our perspective.
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.
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