Page 118 - RUSRptApr17

of investors pooled by Russian Direct Investment Fund (RDIF), including Mubadala Development Company , other leading Middle Eastern and Asian co-investors, and Baring Vostok Private Equity Fund, RDIF announced on April 20. The stake in St Petersburg’s main airport was acquired from Thalita holding company controlled by state-owned VTB Bank, whose share in Thalita will be cut to 25.01%, the remaining shareholders being Qatar Investment Authority (25%) and Fraport airport operator (24.99%). The deal still needs to be approved by Russia’s Federal Anti-Monopoly Service (FAS). The amount of the deal was not disclosed in the press release, but according to previous reports it is about $250mn .
9.2.9 Other sector corporate news
Russian multi-industry conglomerate AFK Sistema reported Oibda revenues rising by 14.8% year-on-year to RUB40.7bn (€680.3mn) under IFRS and cutting net profit to RUB6.2bn in the fourth quarter of 2016 from RUB10bn loss seen for the same quarter of last year. Revenues of Sistema in the fourth quarter increased by 1.6% y/y to RUB186.7bn. “Overall, the company’s results exceeded our expectations,” Gazprombank commented on April 4, noting that the revenues and Oibda narrowly beat both the bank’s and consensus forecasts.Sistema’s net debt grew by 3.6% q/q in the fourth quarter to RUB 83bn, while the cash position declined by RUB5bn q/q to RUB 13.5bn.
Russian fertiliser producer Acron reported IFRS revenue decline of 3% year-on-year to RUB89.4bn in 2016 , with Ebitda down 27% y/y to RUB29.9bn. “The revenue and Ebitda figures were impacted by unfavourable fertiliser prices in 2016, which dropped by 18-39% y/y for primary products,” Gazprombank commented on April 4, adding that the positive impact from a 13% y/y increase in sales volumes was offset by a decline in fertiliser prices.
Russian healthcare company MD Medical Group reported a solid 1Q17 trading update , with a 3% y/y advance in deliveries, 19% y/y increase in IVF procedures, and an 8-9% y/y rise in in-patient and out-patient treatments. The figures were broadly in line with our model, while we see a 2-4Q17 pick-up in volumes being driven by improving utilisations at Ufa and Novosibirsk hospitals. It has an aggressive long-term development programme that is to increase capacities in deliveries and IVF 3.2x and 1.4x over next five years. The number of baby deliveries grew 3% y/y to 1,603 in 1Q, representing 21% of our annual forecast vs. the normalised range of 22-24% in the last several years. For the segment, analysts expect a 2-4Q17 pick-up to be driven by the improved utilisation at Ufa hospital (37% in 2016) and recently launched Novosibirsk hospital (capacity up almost 2x to 1,000). The number of IVF procedures surged by 19% y/y to 3,359, representing 22% of our 2017 estimates vs. 20-21% in last three years. This year, capacities in IVF remain flat y/y at 20,800 in our model. The long-term programme, the company announced five new hospitals and four new geographies (St Petersburg, Kazan, Irkutsk and Krasnoyarsk). As a result, capacities in deliveries and IVF are set to increase by 3.2x and 1.4x, respectively, over the next five years. We remain upbeat on the roll-out plans, and highlight the group's strong execution track record. The stock demands 2017F EV/EBITDA of 10.5x, implying a 30% discount to Emerging Markets peers.
118 RUSSIA Country Report April 2017 www.intellinews.com