PORR prelim. 4Q 19 - Implied FY 20 pre-tax profit guidance lives up to RCBe
PORR reported preliminary FY 19 results (final figures due April 27) and guidance for FY 20 which left a mixed impression. As regards FY 19 output and order missed our estimates, the confirmed PBT target of EUR 35 mn should not come as a surprise. The lower than assumed net debt is a positive. The implied FY 20e pre-tax profit corridor (margin 1.3-1.5%) lives up our forecast but suggests upside to consensus. Guiding for a further improvement to 2-3% in the following years implies noteworthy upside to estimates but given the mediocre track record tangible signs of delivery will be needed, in our view. Although we generally have a neutral view on the release, after yesterdays sell off (stock -12%) a rebound appears warranted.PORR is engaged in the building construction, structural and civil engineering, road construction and infrastructure construction. Co. also operates the construction branches of planning, development, execution and operation. Co. also coordinates the supraregional activities of the construction branch subsidiaries. Co. is engaged in the contruction of buildings and industrial plants; revitalizing protected architectural treasures; general contractor services, project planning and development; railway construction; foundation engineering; power-plant, tunnel, underground rail and traffic route construction; environmental engineering and prestressing technology.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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