Page 135 - RusRPTJul21

to the breakeven point – i.e. no burn at all. Management is more conservative and guides RUB 5bn monthly burn for 2Q21 and 3Q21.
● We reiterate our 12-mo TP of RUB 90 (ETR +27%), and Buy, after fine-tuning our model. The stock has declined 42% in USD since the start of the outbreak (-26% airlines average), and grew 6% in EV (vs. 21% average growth).
9.2.4 Construction & Real estate corporate news
From August 2020 to May 2021, the construction of apartment buildings with a total design area of 30.9 million square meters began on the territory of Russia. m, follows from the report of the analytical center of the company "Dom.RF". This is 1.6 times more than in the comparable period a year earlier: then projects were launched for about 18.8 million square meters. m.
This year alone (from January to May), the construction of 14.8 million against 8.3 million square meters began. m in 2020. Most of all announced new properties in Moscow (2.1 million sq. m., + 47.6%), the Moscow region (1.1 million sq. m., + 41.8%) and the Novosibirsk region (0 , 63 million sq. M., + 59%). The report of Dom.RF also says that in 35 Russian regions the volume of construction has more than doubled over the past five months - for example, in the Stavropol Territory (267,000 sq. M) and Udmurtia (213,000 sq. M).
9.2.5 Retail corporate news
Fix Price has announced the opening of its 4,500th store, bringing YTD openings to 333. The company has entered new regions: Murmansk oblast, Irkutsk oblast and Yamalo-Nenets Autonomous Okrug, and is now present in 1,000 cities and towns in 78 regions of Russia.This brings the YTD roll-out to 333 stores, or 48% of our full-year estimate, slightly ahead of the pace we put in the model for 2021 (700 stores), subject to openings in 2H21. The company is the leader on the variety value retail market (93% share), and has been opening around 560 stores on average per annum in the last three years. Our near-term concern for Fix Price is the potential downside risks to its 1H21 margins, which were affected by global inflation, higher transportation costs, and the elevated base of the last year.
X5 Retail Group and Pickpoint have agreed to unify the infrastructure for delivering products into their parcel lockers and pick-up points.
The combined capacity now has 12,400 parcel lockers (27% belonging to 5Post, a subsidiary of X5) and 14,300 pick-up points (72% at 5Post). Furthermore, both companies will be able to use each other's logistics facilities, including transport, sorting centres and stores.
135 RUSSIA Country Report July 2021 www.intellinews.com