Unior 1Q18: 1Q18 results seem weaker despite strong macro/industry backdrop… but this should improve in the following quarters.
In 1Q18 sales revenues decreased by 2.2% to EUR 63.1m, however auto connected Forging parts increased its sales by 14.4% YoY to EUR 30.1m. Also Hand tools segment grew in the period. On the other hand sales was negatively impacted by Special Machine segment, which is expected to bring revenues in 2H as projects are still underway, and by RTC Krvavec divestment (not consolidated into 1Q18). Margins shrunk as well, with gross profit down 6.9% while EBITDA is down 23.4% YoY. However again, management explained that this is due to an increase in cost of materials (like steel), which will be passed through to consumers in 2Q18. Consequently its for now likely results will improve during the following quarters while 1Q18 is already ahead of Unior unconsolidated plans. In the short earnings update we are keeping our stance, albeit slightly lowering our target price. We again acknowledge that valuations are low, albeit company complexity is warranting discounts while the sentiment is also lagging versus several other domestic companies.
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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