LHV Institutional 'AUGA group (AUG1L LH), May 8th, 2020'
* AUGA group AB (AUG1L LH; hereafter referred to as “Auga†or the “Groupâ€) based in Lithuania, is one of the largest organic food companies in Europe. The Group operates a unique vertically integrated business model, enabling it to control the full value chain, providing full guarantees to customers that its products may be traced. This update comes at a time of extreme uncertainty caused by the COVID-19 pandemic that has ripped through the global economy. Only a few sectors have withstood the wrath of the coronavirus in the financial markets, but we believe that, within the Baltics, there are a select few companies that would profit from the coronavirus crisis and one such company is AUGA group.* We have made revisions to our outlook for the Group to reflect not only the changes in the financial position since the last update (including Q4 2019 results and the issuance of the Green Bond during the final quarter of 2019) but also for the impact of the coronavirus. While we believe that Auga is one company that could benefit from the pandemic, we are still cautious regarding the high level of uncertainty that has been brought on by the virus. Although we are presenting a revised set of forecasts, assuming a relatively healthy state of activities, there is an added level of risk attached to the estimates. We have changed the DCF valuation method from FCFF to FCFE to appropriately adjust for the changes in financial forecasts caused by the adoption of IFRS 16. Despite the changed market conditions, we have maintained our previous fair value range for the Group of EUR 0.45-0.55 per share. This represents a 45.2-77.4% upside potential relative to the current share price of EUR 0.31 per share.
* This report contains a full set of financial forecasts and is useful for gaining an initial insight into the company. Please also refer to the tables and charts in the attachment.
Auga Group AB. Auga Group AB, formerly Agrowill Group AB, is a Lithuania-based company engaged in the agriculture sector. The Company's activities are structured mainly into three divisions, namely Mushroom-growing, Plant production and Livestock production. The Company offers white, brown, portabella, eryngii, pleurotus and shiitake mushrooms. It specializes in organic wheat and other crops, including organic vegetables and organic feed for livestock in its farms. The Company supplies potatoes, beetroots, onions, carrots, marinated champignons, marinated beetroots, among others. The Company operates own trademark AUGA. In addition, the Company is involved in own farms management. The Company has numerous subsidiaries, including UAB Arginta Engineering, UAB AVG Investment and UAB Agro GIS, among others. It operates domestically on the Lithuania territory.
LHV Bank is an independent pan-Baltic bank, based on Estonian capital. The company was founded in 1999 by two founders of Hansapank (today’s Swedbank in the Baltics) and has been offering a full range of investment services for 15 years. In May 2009, LHV received a credit institution licence allowing it to provide all banking services.
The head office is situated in Tallinn, Estonia. Cross-border services are offered in Vilnius, Lithuania and in Riga, Latvia. LHV provides brokerage (institutional and retail), asset management, banking and capital markets services. Compared to other banks, we are more innovative and have more solid experience in investment and entrepreneurship.
The Bank, together with the Group asset management company employs over 320 people. LHV Group shares are listed on Nasdaq Tallinn.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.