Fondul Proprietatea - ENEL Pays Special Dividend Ca (0.076 RON / share)

Fondul Proprietatea - Instant Earnings Comment

Recommendation:  Buy

Target price (12M): RON 1.44

 

ENEL pays special dividend ca (0.076 RON / share)

 

Fondul released its Q4 results.

 

Summary: There was no significant surprise in these report as we received the January NAVPS report in the beginning of February (1.7113 RON / share), since then, there has been a turbulence in the equity market (Romanian Index: YTD -8%) therefore on may expect lower NAVPS for February (listed portfolio is ca.  26%).

 

For a FY profit Fondul recorded RON 3.1 bn mainly from the extremely strong listed share price performance (RON 2.2bn) after the end-of year turbulence in 2018 causing be the emergency ordinance, the remaining ca RON 950 million arrived from dividends received from portfolio companies. Operating expenses increased modestly by ca 3.5% y-o-y.

 

Apart from that distribution assets (ENEL) announced that they will pay special dividend in an extent of RON 2.96bn, out of which Fondul will receive RON 523 million (0.076 RON/share) – has already received 90% of that amount in February. This may indicate that the sale of that asset is near, the total ENEL stake amounts to RON 1,269 million (RON / share 0.19), this valuation includes a 15-20% discount due to lack of liquidity. Investors may expect a special dividend from Fondul in this extent, in our view in 2020.