Daily analyst comments
PIK Group posts 1H 2009 financials
19.10.09 10:53
We are neutral about the 1H 2009 financial statement from PIK Group, even though the company posted a major drop in its financial performance in January-June as compared to the year-earlier period. We believe that news about the further refinancing of the company’s liabilities and property sales data could have a more powerful impact on PIK Group stock valuations.
On 16 October 2009, PIK Group published its 1H 2009 financial statement. The developer’s downbeat financial figures for 6M 2009 were, in our view, quite anticipated and are unlikely to either have any huge impact on our valuation for the company’s credit standing, or to elicit negative responses from the investor community. In January-June, PIK Group sales dropped more than 58%, and EBITDA slumped to USD -106 million.
Table. PIK Group: key financials 1H 2009, mn USD
Despite its relatively weak financials in 6M 2009, the company still voiced plans for a further rescheduling of its debts. The bulk of PIK Group liabilities are already at the final stage of restructure. The developer’s 1H 2009 debts totaled nearly RUB 44.9 billion. By the time the restructure is over, PIK Group projects its overall debt to rise to RUB 48 billion, including additional funding to be provided by Sberbank.
We believe that in the current situation, PIK Group stock valuations are more likely to be affected by news about the further refinancing of its debt commitments and by the publication of property sales data. The influx of funds from property sales has been quite insignificant in the current year.
We currently do not have an official rating for PIK Group (RTS: PIKK).