MMK confirmed at BUY, TP USD 15.3 - Appealing yields ensured by global steel prices boom
- MMK should be more resilient to export duties vs peers due to historical focus on domestic sales- Reduction in Chinese steel export should maintain global steel prices
- Restart of MMK Metalurji is to push EBITDA by 4% in 2021e and by 9-10% in 2022-23e
- MMK will provide double-digit DY of 15-16% for 2021-22e
- The stock still trades with a significant discount to peers (over 30% on 2022e EV/EBITDA)
Magnitogorskiy Metallurgicheskiy Kombinat PAO, formerly Magnitogorskiy metallurgicheskiy kombinat OAO, is a Russia-based company, active in the steel industry. Its main products are sinter, coke, iron, crude steel, rolled products and ore materials. The Company offers a wide range of products such as wire rod, rebars, square bars, strips, round bars, among others. It is also involved in the coal ore mining, processing of ore materials, sale of ferrous metal products and others. Magnitogorskiy metallurgicheskiy kombinat OAO operates as a supplier for such industries as: pipelines, vehicles, railway, construction and shipbuilding, among others. Its subsidiaries include Lys'venskaya Metallurgicheskaya Kompaniya OOO, among others. The Company operates domestically, as well as exports its products to the Commonwealth of Independent States (CIS) countries, Asia, the Middle East and Europe.
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