Edison Investment Research - TransContainer (TRCN) Russian rail volumes continue to grow

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Edison Investment Research

Russian rail volumes continue to grow

TransContainer’s (TRC) FY16 results announcement on 29 March was in line with Edison and market expectations. Russian rail freight volumes are growing by double-digit amounts and TRC continues to show its ability to exploit this growth trend. Our three-year EBITDA (company definition) CAGR of 12.7% is driven by continued economic recovery in Russia, higher rates of ‘containerisation’ and enhanced profitability as an increasing volume of freight is handled by TRC’s more profitable Integrated Freight Forwarding (IFF) business. TRC remains the only way to gain equity exposure to these underlying trends. The company’s Q1 operating update further bolsters the equity story with an increase of 22.4% in Russian rail freight market volumes.

26/04/2017 7 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

Provider

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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Russian rail volumes continue to grow

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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