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recorded in 4Q," BCS GM commented on March 3. The analysts estimated that the 2019 results imply a dividend yield of 6.4%, seeing it was moderately positive for the name. Aeroflot's lowcost subsidiary Pobeda carried 0.92mn passengers in January 2020, boosting its traffic by 34% and becoming Russia’s third-largest carrier.
The Aeroflot Group expects the delivery of 55 aircraft this year, including 11 wide-body Airbus A350 jets and 22 of the Russian made SSJ 100 jets, the so-called “super jets,” the Russian airline said reported Tass on March 3. The company was expecting 10 SSJ-100 airplanes last year but delivery was postponed until this year, Aeroflot said in a presentation. Aeroflot is keeping the super jet programme afloat which has been making losses as Russia has so far unsuccessfully tried to break into the mid-range jet production business. The air carrier is also waiting for two wide-body Boeing 777 jets, six narrow- body Airbus A320 planes, three A321 and seven Boeing 737 airliners. The group has also ordered two new Bombardier DHC-8 and DHC-4 planes for its regional airline that are due this year. In total 13 airplanes will be decommissioned over the year this year. The Group fleet consisted of 359 airplanes, according to data as of 2019 year-end.
9.2.4 Construction & Real estate corporate news
Russian real estate developer Etalon disclosed its end of year valuations. The gross asset value (GAV) was virtually flat y/y at R188bn (versus R187bn as of end-2018). This figure includes Etalon's construction and maintenance division, the value of, which increased by 25% y/y to R12bn. The project portfolio was valued at R176bn, barely below the end-2018 level of R177bn. Unsold net saleable area totalled 3.3mn m2, down from 3.4mn m2 a year earlier. Etalon has not published its 2H19 and 2019 IFRS results yet, but it disclosed that net debt ended the year at R22bn when it released its 4Q19 operating results. Accordingly, the portfolio valuation suggests that Etalon's NAV stood at R165bn, or R154bn excluding the construction division. This implies that the stock trades at a P/NAV multiple of just 0.2. For comparison, LSR Group trades at a 0.5 P/NAV (based on its end-2018 asset valuation).
9.2.5 Retail corporate news
Detsky Mir released robust financial results for 4Q19, reporting 13% y/y top- line growth, an EBITDA margin of 12.2% (down 20bp y/y) and a net margin of 7.1% (40bp lower y/y). EBITDA was in-line with our and the consensus estimates, whereas net income was 2% and 8% below our and consensus forecasts, respectively, as the company booked a 30% y/y higher LTIP (at RUB470mn), linked to the stock performance (up 6% in December) and launched a new LTIP (approved in October).
Detsky Mir included in Russia’s list of systemically important organizations. The Ministry of Economic Development of Russia plans to monitor the financial and economic situation of organizations included in the list of the Russian economy’s systemically important companies. The purpose of monitoring the financial performance is the timely detection of negative factors affecting the sustainable development of such organizations, as well as preparing supporting proposals to eliminate identified risks or minimize their negative impact on the key operating and financial metrics of such companies.
111 RUSSIA Country Report April 2020 www.intellinews.com