Page 130 - RusRPTOct21

of 1H20).
· EBITDA was up 2.7x y/y (RUB9.6bn), while the EBITDA margin
reached a normalised 24% (+12.6pp y/y). This was mostly due to the gross margin enhancement and optimised SG&A as a%age of revenues (11% vs. 14% in 1H20).
· As a result, net income reached RUB1.3bn (vs. the RUB1.8bn loss a year ago).
· The Board of Directors has recommended a dividend of RUB9.39/share (8% yield), which iselow the previous guidance of RUB12/share (10% yield) and is incorporated in our model. The ex-date and record date are toe presented closer to the respective AGM.
· The company has updated its dividend policy. It now features a payment of 40-70% of pre-PPA IFRS net profit, with one annual payment during the year. The minimum payout of RUB12/share was removed from the new policy. TheoD’s recommendation is toe provided no later than 31 May following the reporting period, with payment made before 31 December.
Analysts note that 2H21 is to have a higher comparison base and the residential sector is set to cool, due to the modification in the subsidised mortgage programme (which was the core demand driver). The company has also provided a lower than anticipated dividend recommendation, which might have been a result of the land acquisition pipeline (1.13mn sqm for 2021). Increasing the landank is vital for the company’s investment case, as it has shrunk of late: in 2020, the total area declined 15% y/y to 2.8mn sqm, equal to just over five years of sales. During the recent SPO, Etalon increased its share capital 30%,y 88.5mn additional shares, and raised RUB11bn, with the key aim being to expand its portfolio. The area it acquires is going to depend on the payment scheme, and we anticipate strong reliance on the instalment mechanisms. While theoD’s dividend recommendation of RUB9.39/share (8% yield) is below the previously guided RUB12/share (10% yield), in absolute terms the payment of RUB3.6bn is comparable with the last three years, on the back of share issue.
Samolet held a conference call following the release of 1H21 IFRS. The main takeaways areelow: oth sales and financial guidance for 2021-23 were left unchanged The company confirmed that the EGM will consider the approval of an additional share issuance as a technical part of preparing for an SPO scheduled for autumn 2022-spring 2023 – in line with previous statements. Management refused to comment on speculations in the media about the possible acquisition of Inteko July and August sales trends show that demand is solid, despite the change in the mortgage incentive program. The market remains materially undersupplied. Prices were also higher m/m in August. Expectations about average price increase were maintained at 10% annually Separately, Samolet released a valuation report, prepared by C&W.
130 RUSSIA Country Report October 2021 www.intellinews.com