Page 127 - RusRPTAug21

· Aims to invest RUB8bn in business digitalisation and startups. The priority is to create a digital house management system.
· Might increase the current stake in SPB renovation company (5%) to a controlling one. Will likely participate in renovation projects in the Moscow region.
· The price difference between old and new housing is now 30-40%. Supply in the Moscow Metropolitan area is 4mn sqm vs. 8mn sqm in 2017.
PIK reported strong 2Q21/1H21 operating results, driven by stronger sales in Moscow as well as strong price dynamics.
Sales growth in 2Q21 of 570ths sqm (incl 107ths sq m fee development) was mostly driven by growth in Moscow by +67% y/y and +11% q/q to 326ths sqm, other regions performance came also strong with 244ths sqm (+17% y/y ; +9% q/q).
Average selling price dynamics was very firm with Rb181ths/sq m (+34% y/y and +9% q/q) with average price in Moscow of Rb219ths/sqm (+31% y/y; +10% q/q) as well as in the regions of Rb130ths/sqm (+23% y/y; +8% q/q).
Driven by strong sales, total cash collections comprised Rb119.75bn in 2Q21 (+96% y/y) and Rb225.5bn 1H21 (+59% y/y).
Etalon released strong 2Q21 operating results with sales growth post mild 1Q21, supported by firm pricing dynamics - supportive for 1H21IFRS.
2Q21 sales of 122 ths sqm (+29% y/y; +24% q/q), supported by strong sales in Moscow with 79.4 ths s qm (+70% y/y; +53% q/q), yet sales in St. Petersburg declined to 43ths sqm (-11% y/y; -9% q/q).
Share of mortgage increased to 47% in 2Q21 overall sales and 67% in apartments sales.
Average selling price in Moscow reached Rb232 ths/sqm (+89% y/y; +27% q/q) with price dynamics in St. Petersburg also firm Rb151ths/sqm (+11% y/y; -4% q/q) – supportive for margins.
Cash collections also reflected strong dynamics with Rb23bn (+64% y/y; +27% q/q) in 2Q21.
9.2.5 Retail corporate news
The Federal Anti-Monopoly Service has approved the purchase of grocery store chains Dixie and Megamart by rival Magnit, but only in municipalities where Magnit does not already represent more than 25% of the market. In addition, the combined market share of Magnit and Dixie in any one municipality cannot exceed 35%. Magnit has also made commitments to limit
127 RUSSIA Country Report August 2021 www.intellinews.com