WOOD Flash – MMK: Capital Markets Day 2019 – higher dividends expected
MMK hosted its 2019 Capital Markets Day today (15 November). The big news, in our view, is the plan to pay c.USD 200m more than the FCF in 2020-23E, while the capex is temporarily elevated (USD 900m p.a. in 2020-23E vs. USD 700m on a normalised basis), following the strategies of NLMK and Severstal. However, with MMK currently having a small net cash position, we believe this policy will be more sustainable in a low price environment than we expect for Severstal. EBITDA gains are expected to be USD 483m in total in 2019-25E, from c.USD 406m in quantified gains in the previous guidance. However, no new large projects were added to MMK’s plans and we do not believe the capex spending plans will surprise the market. Overall, we believe the market reaction should be slightly positive.
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.