Page 147 - RusRPTAug22

management accounts and 2022G. No conference call post release is scheduled.
● In 2Q22, sales showed strong dynamics – 219ths sqm (+31% y/y; -5% q/q), sales in money terms reached Rb36.9bn (+39% y/y; -8% q/q), suggesting average selling price was slightly down q/q to Rb168/sqm (+6% y/y; -3% q/q).
● In 2Q22, cash collections came strong as well – Rb35.9bn (+32% y/y; -9% q/q). Press release states activity intensified in May-June post subdued March-April.
● Elevated interest rate environment affected share of mortgages with 73% in 2Q22 post 75% in 1Q22 and 76% in 1Q21. We believe strong sales were supported by company’s own subsidy programs, while recent key rate cuts are to be supportive for mortgage share and sales going forward.
● 1H22 management accounts revealed strong trends as well: revenue almost doubled y/y to Rb88.2bn (+89% y/y), while EBITDA and net income reached Rb21.9bn (+77% y/y) and Rb13bn (+65% y/y) with margins declined 2ppt yet remained firm at 25% and 15%, respectively.
● 2022G suggests sales to reach 1.2mn sqm (+50% y/y) amounting to Rb200bn (+58% y/y), leading to EBITDA of Rb60bn on management accounts vs Rb65bn target according to business plan, announced at the Investor Day in November 2021.
LSR released its 2Q22 trading results – the first among public Real Estate developers.
● Decline in sales was heavier in Moscow – down 67% y/y and 54% q/q to
● 13 ths sqm, while a bit less pronounced in St. Petersburg – down 34% y/y and 54% q/q to 71 ths sqm, while sales in Ekaterinburg reached only 7 ths sqm (-72%; -81% q/q).
● Sales in money terms were even under more pressure with Rb12bn (-57% y/y; - 71% q/q), given a decrease in average selling price to Rb133/sqm – we attribute it partially to project mix change with less demand for higher end projects.
● Mortgage share in sales reached 77% in 2Q22, quite a significant increase vs 66% in 2021 and 75% in 1Q22.
● Building materials dynamics was mixed, yet mostly showing increase 23% q/q on average except for aerated concrete. According to a press release, sales dynamics in the building material segment was in line with management expectations.
Etalon released 2Q22 Operating results. Sales decreased both in Moscow and in Saint Petersburg, yet pricing trends were firm, and new regions are getting more visible with their sales at 4.5ths sqm contributing 8% in 2Q22.
147 RUSSIA Country Report October 2020 www.intellinews.com