Page 151 - RusRPTSept21

instruments (RUB55bn), increased almost 40% y/y to RUB35.9bn, on the back of a 1.9pp y/y improvement in SG&A as a%age of revenue (to 5.3% in 1H21). Thus, the adjusted EBITDA margin remained flat y/y at 19%.
· 1H21 net operating cash flow was negative RUB113bn, with the key pressure coming from RUB68bn of land acquisitions and advances paid for them. Total debt was RUB337.5bn as of June and project financing represented 80% of the total, while net debt/LTM EBITDA was 1.2x, slightly ahead of 0.9x as of 1H20.
· The next important milestone for the investment case is the CMD, which is scheduled form 10 September. Our focus is on the July-August sales trends, the near-term land acquisition pipeline, cash flow outlook, the adaption to the modification of the subsidised mortgage programme and the overall strategy execution progress.
· PIK's shares have more than doubled YTD and now demand 1.3x P/NAV. We note that PIK has the most appealing development profile in our coverage universe and greater resources to mitigate the negative consequences of cooling demand in the near term.
LSR released 1H21 IFRS financial and 2Q Operating result.
· Revenue Rb54.8bn (+14% y/y; -22% h/h) - 2% beat to BCSe, supported by 1H21 313ths sqm new contract sales (-10% y/y; -35% h/h) with Rb47bn (+24% y/y; -18% h/h) – mostly inline with BCSe, as 2Q21 operating update was not provided before.
· EBITDA Rb12.4bn (+62% y/y; -28% h/h) - 11% miss to BCSe, yet we note favorable price dynamics supportive with Rb150ths/ sqm (+37% y/y; +26% h/h) with EBITDA margin stay firm at 22.5%.
· 2021G update: new contract sales 608ths sqm (-26% y/y) from 892ths, new contract sales in Rb terms Rb91bn (-4% y/y) from Rb106bn; new launches to 944ths sqm (+20% y/y) from 1,007ths sqm; Completions reiterated at 789ths sqm (+17% y/y).
Samolet Sports complex to improve offering. Samolet plans to build sports complexes. According to company’s representative, they are planning to improve infrastructure of residential complexes. Ten ha has already been allocated to this initiative in Moscow and Moscow region. The first project calls
151 RUSSIA Country Report September 2021 www.intellinews.com