Unior 2017: Initiation of coverage.
Unior has found itself over-leveraged in global crisis times, as it’s a cyclical company tied especially to automobile industry. In addition its product and service offer is broad, too broad, as its product portfolio includes from forging parts to hand tools and tourism. In the last few years Unior Group therefore started to focus more on core businesses while also trying to refinance its debt (2016) together with deleveraging. 2017 results are still solid, as we must consider one-offs versus 2016. Top line dynamic is still favourable with 9.1% increase, as macro and auto industry backdrop is strong, but its also true cost have started to squeeze margins. EBITDA is consequently up by mere 3.3% YoY in 2017. We believe high leverage, low liquidity and complex structure is justifying a hefty discount to peer group, but with shares trading at only EV/EBITDA 4.9x and P/B 0.3x, we believe the shares are undervalued on relative (peer) valuation method.
Unior dd is a Slovenia-based company active in the industrial equipment sector. Its business is divided into five sectors: Forging, producing forgings for automotive, automotive chassis support parts, shafts for automotive engines, elements for drive-shafts and parts for transmission; Sinter, producing parts of steering mechanism for cars, metal marts for building hardware, sildes, rotors and housing for oil pumps, slide bearings and bushes, gears, sprocket wheels, pulleys, roads and flanges; Hand tools, offering wrenches, pliers, cutters, screwdrivers and bits, and hammers; Special machines , providing processing, facing, drilling and rotary indexing table machines; and Tourism managing tourist resorts in Rogla nad Zrece. As of December 31, 2011, the Company operated 20 subsidiaries and 12 affiliates worldwide.
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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