NLMK - Trading Update Review and 1Q19 Earnings Preview
NLMK published a 1Q19 trading update today that generally met expectations. We forecast an 18% Q-o-Q decline in EBITDA to $695 mln in 1Q19 and expect leveraged FCF of around $600 mln, for a 4% yield. We raise our dividend estimates to reflect the changes in the company's dividend policy that were announced at the investor day in March. NLMK is trading at an 11.5% 2019E dividend yield based on our steel price and USD/RUB forecasts and a 10.5% yield at the current steel price and exchange rate, in line with its Russian steel peers. We reiterate our HOLD recommendation.
Novolipetsk Steel is a vertically integrated steel manufacturing and production group based in Russia. Co. specializes in the manufacturing of high-quality hot and cold rolled steel in a variety of grades and sizes. Co. is also engaged in production and sales of flat steel products including slabs, hot rolled and cold rolled sheet, electrical steel, galvanized steel, cold rolled sheet with polymeric coatings. In addition, Co.'s areas of manufacturing include sintering, coke production, blast furnace production, steel-making, hot and cold-rolled flat steel production, galvanized and prepainted steel production. Co. exports its products to 70 countries around the world.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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.