Ibersol: Adding extra toppings
We reiterate our BUY rating on Ibersol with our FV nudging up to Eur15.8 (from Eur 15.4 - adjusted for the last bonus issue). We think the good 1Q18 results support our positive view, although their impact on the shares should be limited. Our buy case is supported by its attractive valuation (c. 5.5x EV/EBITDA 18E), and a capex plan that although relatively small is, in our view, value accretive. We also think this is an interesting way to gain exposure to rising Iberia consumer spending and tourism. Our estimates have been slightly cut due to the negative impact from a lower number of concessions held at Barcelona airport and also a negative impact from the devaluation of the Kwanza as Ibersol has 10 restaurants in Angola. Our EBITDA falls by 2% in 18E, 6% in 19E, but is flat for 2020E. Apart from those 2 negative effects, we expect organic growth to remain supported with c. 5% like for like sales growth in Portugal supported by tourism and stronger domestic demand.Ibersol SGPS SA. Ibersol SGPS SA is a Portugal-based company primarily engaged in the operation of restaurants. It is active in Portugal and Spain. The Company divides its activities into six business areas: Restaurants and Delivery; Counters; Travel; Coffee Kiosks; Catering, and Concessions. In the Restaurants and Delivery area, it is involved in the operation of restaurant chains under brand names of Pizza Hut, Pasta Caffe and Pizza Movil. In the Counters area, it operates restaurant chains under banners KFC, O Kilo, Burger King and Pans, as well as The Eat-Out Group brand names. The Travel business sector includes the provision of foodservices on highways and airports. The Coffee Kiosks sector consists of coffee retailers under the brand name Delta. In the Catering sector, it is active in the preparation of meals. The Concessions sector includes the management of concessions for provision of foodservices in number of spots in Portugal, such as Serralves Museum and Casa da Musica, among others.
Haitong is the first international Chinese investment bank and our goal is to be the primary channel for capital flows into and out of China. During 2015 the Senior Management Team in London was expanded significantly to focus on this objective and to provide a full-service cross-asset markets business coupled with sector-focused investment banking. We work closely with our world-wide network of offices to bring a true depth of understanding to all client situations.
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