Benefit Systems: New year, new me – again (stays BUY)
We keep our BUY rating on Benefit Systems, with a new price target (PT) of PLN 1,171/share (from PLN 930). The main reasons for our update and PT increase are: i) the company delivered better-than-expected new additions of sports cards in Poland in 2019, at +147,000 vs. the 108,000 we expected; and ii) the faster improvement of the fitness segment results vs. our earlier assumptions. It appears that the fitness clubs opened in the past couple of years have started to mature, while the slower club rollout should be less of a burden on the results, going forward, than on our initial cautious assumptions (we have cut the segment’s 2019E net loss to -PLN 31m, from -PLN 60m). While both sports cards and fitness in Poland are growing and improving faster than we expected, we keep our assumptions on foreign expansion broadly unchanged. We expect the foreign markets to add more new sports cards than the domestic market next year (2021E). Benefit Systems remains a leader in the fitness market in Poland: with c.5% of fitness clubs, the company has c.30% of all fitness members in Poland and a c.80-90% market share among sports cards operators.Benefit System SA is a Poland-based company engaged in providing work benefits in the area of sport, recreations, culture and entertainment for employers. Its products portfolio includes MultiSport Plus card, program that allows access to the sport and recreation clubs and multi-purpose facilities; MultiBet, providing access to more than 90 cinemas through Poland; and cafeteria programs, which allow employees to select items from such segments as sport, recreation, culture, entertainment, tourism and health and beauty. The Company is a parent entity of a capital group, which includes subsidiaries, such as MyBenefit Sp z o o, FitSport Polska Sp z o o, Vanity Style Sp z o o and Multisport Benefit sro, based in the Czech Republic.
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.
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.