Edison Investment Research - TransContainer (TRCN) TransContainer - Revenue and cost initiatives paying off

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Edison Investment Research

TransContainer - Revenue and cost initiatives paying off

TransContainer (TC) has continued to show strong results, with Q218 EBITDA, reported on 29 August, increasing by 13% y-o-y. The company is benefiting from structural growth, especially switching rail cargo to containers, and Russiaâ€™s economic recovery. Recent monthly market data bode well for TCâ€™s Q318 results. It has also continued to pursue initiatives that are benefiting the EBITDA margin by increasing the proportion of Integrated Services, profit-making runs and block trains. Our DCF model gives a valuation of RUB5,200/share (unchanged), which offers 12% upside to the current share price.

25/09/2018 16 EN

Underlying

TransContainer

PJSC Transcontainer is engaged in the arrangement of rail-based container shipping and other logistics services. Rail-based transportation services primarily include arranging the transportation of its own and third-party containers by rail. Integrated freight forwarding and logistics services are service packages including rail container transportation, terminal handling, truck deliveries, freight forwarding and logistic services. As of Dec. 31, 2012, Co. owns and operates 46 container terminals along the Russian railway network, operated 17 branches in Russia, had a truck fleet of 860 units, fleet of 25,086 container flatcars and 19,425 medium-duty (3-ton and 5-ton) containers.

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RU000A0JPRX9 Moscow Exchange MICEX-RTS Russia

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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TransContainer - Revenue and cost initiatives paying off

TransContainer - Mandatory tender offer to be launched

TransContainer - Another beat, with structural and cyclical drivers

TransContainer - Q1 growth trend exceeds our expectations again

Basilea Pharmaceutica - Cresemba milestone payments continue to roll in

AAC Clyde Space - Solid start to the year with further order growth

Tinexta - Typical seasonality in Q124

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