Page 74 - RusRPTAug19

bank operates at the highest ROE in the sector (40%+).
Etalon
ETLN LI
$4.7/GDR 32%
This year should be a strong for the company in terms of earnings growth: we expect EBITDA and EPS to increase by 53% and 50%, respectively, driven by falling inventories from built flats. The share of more value-added projects in Moscow has increased to 50% of total portfolio, which in turn should lead to better margins. Finally, debt burden is the lowest vs other developers, allowing Etalon to boost its dividends. We believe Etalon’s dividend yield may reach 9% for 2017, overtaking LSR Group.
Rosneft ROSN LI $7.3/GDR 24% The highly likely approval of MET benefits for the Samotlor high watercut field in the coming months could become a strong trigger for the name: we estimate a +5-6% effect on annual EBITDA. The
dividend payout increase to 50% is an additional supportive factor.
MMK MAGN RUB41.5/ 24% RX GDR
MMK’s shares have fallen 20% from the 1Q17 high and it remains one of the cheapest steel names globally at 3.8x EV/EBITDA for 2017. Steel industry is recovering and the steel over bulks premium in China is expanding; MMK, which has the lowest integration into raw materials, is the key beneficiary.
Novatek
NVTK LI
$133/GD R
17%
The stock has been considerably oversold on the back of the crude oil slump and has not yet recovered. Timely launch of Yamal LNG along with the new strategy presentation in 2H17 are key drivers for a re-rating, in our view.
Globaltrans
GLTR LI
$8.7/GDR
13%
This year should be successful for the company, because the deficit of gondola cars on the rail network has led to rising tariffs, which have already achieved RUB1,500 per rail car per day. As a result, we see upside risk to our earnings estimates. Additionally, the company may pay interim dividends for 1H17, while the annual dividend yield is close to
8.3.2 Dividends dynamics
Gazprom’s shareholders will be paid RUB383.2bn ($6bn), or 27% of 2018 net profits in dividends, the company said after its annual shareholders’ meeting Friday. “This dividend amount is the largest in the history of the company,” the company said in a statement.
The board of directors of major Russian mobile operator MTS has recommended shareholders approve January–June dividends at 8.68 rubles per share, or 17.36 rubles per American depositary receipt (ADR), totaling 17.346bn rubles, the company said Tuesday in a statement. For January–June 2018, MTS paid 2.6 rubles per common share, or 5.2 rubles per ADR, which totalled 5.196bn rubles. For 2018, MTS paid 19.98 rubles per share, or 39.96 rubles per American depositary receipt (ADR), totaling 39.927bn rubles.
The government decided to set dividends of the Russian Railways (RZD) for 2018 to 74% of the company's profit under RAS, or more than RUB13bn, according to Deputy Prime Minister Maxim Akimov. He did not specify how exactly dividends will be paid - in cash or equity. In 2018, RZD received RUB18bn net profit under RAS and paid dividends as equity. At the end of 2017, RZD allocated 50.03% of net profit , or RUB8bn 755mn, to pay dividends.
74 RUSSIA Country Report August 2019 www.intellinews.com