Report
Research Team

WOOD Morning (15 May)

HEADLINES:
* Raiffeisen Int: 1Q18 - strong bottom line, but driven purely by LLPs, as pre-provision profit in line POSITIVE
* Romgaz: 1Q18 results affected by poor electricity and storage performance NEGATIVE
* CCC: 1Q final numbers weak, matching preliminary statement
* AmRest: 1Q EBITDA strong, as expected, miss on bottom line due to taxes and impairments
* Rosneft: 1Q18 results - improving FCF is quite encouraging
* Play Communications: 1Q18 - 3% miss on adjusted EBITDA NEGATIVE
* MedLife: 1Q18 revenues and net profit beat, but EBITDA margin disappoints NEUTRAL
* Sphera Franchise Group: 1Q18 results - growth on track, with EBITDA margin above 11% NEUTRAL
* Atrium: 1Q18 - a steady quarter, with 2.5% like-for-like yoy growth in CEE NEUTRAL
* DIGI Communications: 1Q18 results show operating growth, broadly in line with our expectations NEUTRAL
* Kofola: 1Q18 results in line, 2017 DPS increased, planned divestment from Poland NEUTRAL
* Conpet: 1Q18 results slightly below expectations NEUTRAL
* Transgaz: 1Q18 results - down 26% yoy, but above expectations
* Transelectrica: 1Q18 results down 4% yoy, but above our expectations
* Alior Bank: loans awarded to GetBack below PLN 50m NEGATIVE
* CEZ: will not propose Transformation at June AGM, IndMin opposed NEUTRAL
* NIS: to pay out 25% of its 2017 net income NEUTRAL
* Turkish automotive: motor vehicle exports flat yoy in April NEUTRAL
* EME Strategy: MSCI May SAIR - X5 in, FFGRP out, TPE out, TTKOM out
* KGHM: 1Q18E financial results preview - weak, but expected (due out today, after the close) NEGATIVE
* Medicalgorithmics: 1Q18E preview (due on 22 May) NEUTRAL
* Short News (GNB, PKO, AEFES)
Underlyings
Alior Bank SA

Alior Bank is a universal lending and deposit-taking bank which renders services to individuals, legal persons and other entities which are Polish and foreign persons. Co.'s core activities include maintaining bank accounts, granting loans and advances, issuing banking securities and purchasing and selling foreign currency. Co. also conducts brokerage activities, consulting and financial agency services and renders other financial services.

AMREST HOLDING

AmRest is a holding company. Through its subsidiaries, Co. is an international fas-foods and casual dining restaurant operator in Central and Eastern Europe. Co. has been building a portfolio of well recognized power brands such as KFC, Pizza Hut, Burger King, Applebee's and Starbucks based on solid franchise and joint venture partnerships. Co. owns La Tagliatella brand which is being developed as Co. operated restaurants as well as franchised stores. Co. operates almost 700 category Quick Service and Casual Dining restaurants. Co. is based in Wroclaw and operates in Poland, Czech Republic, Hungary, Russia, Bulgaria, Serbia, Croatia, Spain, France and the United States.

Atrium European Real Estate Limited

Atrium European Real Estate is engaged in the ownership, management and operation of commercial real estate in the retail sector. Co. primarily operates in Poland, the Czech Republic, Slovakia, Russia, Hungary and Romania. Co. has two reportable segments: the standing investment segment includes all commercial real estate held to generate rental income for Co.; and the development segment includes all development activities and activities related to land plots. As of Dec 31 2016, the portfolio of standing investments consisted of 59 properties in Poland, the Czech Republic, Slovakia, Russia, Hungary, and Romania.

C.N.T.E.E. Transelectrica

CCC SA

CCC is engaged in the wholesale and retail trade of clothing and footwear. Co. offers its products to wide range of consumers, from demanding clientele of trendy boutiques to value-oriented medium segment customers, to less wealthy customers seeking reasonably priced quality footwear. Co. pursues a strategy of brand diversification, which is reflected in its three autonomous distribution channels: a chain of official CCC stores, BOTI footwear shops and QUAZI boutiques. Co. offers more than 2,500 designs of footwear. Co. also owns more than 67 proprietary brand names e.g. Lasocki.

Conpet SA

Digi Communications NV

KGHM Polska Miedz S.A.

KGHM Polska Miedz is engaged in the mining of copper and non-ferrous metals ore; the excavation of gravel and sand; the production of copper, precious and non-ferrous metals; the production of salt; the casting of light and non-ferrous metals; the forging, pressing, stamping and roll forming of metal- powder metallurgy; waste management; wholesale based on direct payments or contracts; warehousing and storage of merchandise; holding management activities; geological and exploratory activities; general construction activities with respect to mining and production facilities; scheduled and non-scheduled air transport; telecommunication and IT services; and other activities.

Medicalgorithmics SA

Medicalgorithmics SA is a Poland-based company engaged in the advanced medical equipment and technology industry. The Company develops and manufactures system for the diagnosis of heart arrhythmia. Its product, named PocketECG, is used for remote monitoring of cardiac disorders, arrhythmia diagnosis and monitoring of heart, as well as is used for clinical drugs trials for cardiac safety. In addition, Medicalgorithmics SA provides services in the field of information technology and biotechnology, scientific research and development of natural sciences. Moreover, the Company works on the several projects, such as a device for tele-rehabilitation cardiology, software for optimizing repetitive task in hospitals, as well as devices and systems for remote description of the electrocardiography (ECG). It operates through MEDICALGORITHMICS US HOLDING CORPORATION and Medi-Lynx Cardiac Monitoring LLC and Medi-Lynx Cardiac Monitoring LLC.

Naftna Industrija Srbije Nova Sad

Play Communications SA

Play Communications SA Formerly known as Play Holdings 2 SARL. Play Communications SA, formerly Play Holdings 2 SARL, is a Luxembourg-based provider of financial investment services. The Company is the owner of mobile operator P4 Sp z o o, that provides a wide range of mobile telecommunications services, including voice, data transmission services, messaging, video service (PLAY NOW), as well as Value Added Services and sales of handsets and other devices, to individual and business subscribers in Poland.

Raiffeisen Bank International

Rosneft Oil Co. Sponsored GDR RegS

Societatea Nationala De Gaze Naturale ROMGAZ SA

Societatea Nationala de Transport Gaze Naturale Transgaz S.A.

Sphera Franchise Group SA

Provider
Wood and Company
Wood and Company

WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.

A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.

Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.

We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.

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