Page 79 - RusRPTSept19

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 17% The stock has been considerably oversold on the back of the crude R 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
● Oil & gas
Tatneft has announced that its BoD has recommended a dividend of RUB40.11 per share for 1H19. The record date is September 27. The EGM to approve the payment will be held on September 13. Tatneft distributed all of its FCF in dividends in 2017-18, while the company's official dividend policy stipulates a payout of at least 50% of RAS or IFRS net income, whichever is the highest. Last year, the company paid out $2.2bn in dividends (R65 per share) and generated FCF of $2.3bn. The company paid RUB32.4 per share (R75bn) in July this year. Technically, this was the remaining part of the dividend for 2018, but the distribution came from 1H19 FCF, we calculate (as generally confirmed by the management during the 1Q19 results conference call). The interim dividend of RUB40.11 per share raises this year's payment to R72.5 per share (RUB169bn, or $2.6bn) based on 9m19 FCF (on a cash-paid basis). The implied interim dividend yield stands at 4.5% for the commons and 4.9% for the prefs (giving respective cumulative yields of 10.1% and 11.0% for 9m19).
Gazprom Neft’s Board of Directors recommended interim dividends of RUB 18.14/share, or total dividends of RUB 86bn (USD 1.3bn) for 1H19, according to a company press release. The shareholders meeting is to decide on dividends on 30 September. The record date for dividends is set for 18 October, Interfax reports.
● Retail
The figures of Russian retailer X5 Retail Group in January–June 2019 create a solid base for payment of dividends in 2020, CEO Igor Shekhterman said, as cited in a statement of the company on August 15. “In June, we paid RUB25bn in dividends for the 2018 financial year, which corresponds to 87.3% of the net profit. I am sure that the figures of the first half of 2019 created a good base for the next payment, which we plan to make in 2020,” Shekhterman said. The net profit of the company rose 55.5% on the year to RUB13.508bn in April–June, as calculated under International Financial Reporting Standards (IFRS) the company said earlier in a report.
● Real Estate
79 RUSSIA Country Report September 2019 www.intellinews.com