Page 88 - RusRPTJun20

The announced dividend implies a dividend yield of 6.7%. Together with the previously paid RUB192/share, this brings the total FY19 dividends to RUB542/share. The dividend amount is fully in line with the company’s dividend policy, its previous statements and market expectations, we believe (see our Morning Comment of 12 March). We note, however, that the share price appreciated 6.3% on the news.
● Banks
Sberbank​’s Supervisory Board met and approved to delay the AGM from 26 June to 25 September in accordance with the Order of the President​; 2019 dividend size will be addressed by the Supervisory Board in August. Thus, record date is set for 5 October. Separately, CEO Gref provided some comments on the current situation. He said it is too early to estimate potential pressure on provisions, but Sberbank would stay profitable in any scenario. Gref expects loan demand to recover in the autumn, given current pressure and sees mortgage rates on the secondary market declining until the year end, following the path of the key rate cuts. In addition, the primary market will be supported by the subsidized government program at 6.5%. At the company, 70% of personnel (except for front office in branch network) will continue to work remotely until July, but only 30% at the management level. Also, Sberbank set up a project company “Immunotechnologies” with the government to help to produce a vaccine against COVID-19.
● Retail
Thekeyshareholderof​X​ 5RetailGroup​,AlfaGroup,hasaskedtodefer the dividend payment to it from X5​. For FY19, the dividend is RUB30bn, with the record day on 24 May and a yield of 5%. The respective AGM is scheduled for 12 May. According to X5's CEO, Alfa Group’s request is a positive decision, given the uncertain macro environment, as it will support the company’s liquidity position and provide additional funds to implement the strategy successfully. The dividend policy remains unchanged, while all the necessary payments to minorities are to be made on time and in full.
Obuv Rossii BoD recommended not paying dividends for 2019, ​according to the company’s disclosure. The decision looks reasonable and may bolster liquidity and improve bottom line, given trading restrictions (stores were closed in April, half of May) and economic uncertainty created by the coronavirus pandemic.
Detsky Mir’s BoD recommended final dividend for 2019 at Rb3/sh​. According to the company’s press release, the BoD recommended to approve Rb2,217mn dividends for 2019 (90% of IFRS net profit or 55% of RAS net profit). The AGM will be held on 30 June. The record date for the AGM is June 5. The announced dividend represent 55% of RAS net income instead of guided 100%, which is reasonable, given negative impact from COVID-19. Final DPS and 9M19 DPS totals Rb8.06/s and implies solid 8.3% DY for 2019.
● Power
UPRO disappoints with smaller end-2020 dividends. ​Unipro​ surprised with a cut to DPS guidance on May 8. While June DPS remains intact, the company has cut its December DPS guidance to RUB0.111 vs previously guided RUB0.206, as COVID restrictions have caused delays in Berezovskaya GRES’ restoration works. Meanwhile, 2021-22 guidance was reiterated for now. BCS GM sees a 15% upside to its 12MF TP of RUB3.2/sh. The stock currently offers only a 7.8% 12MF DY with potential further downside if COVID restrictions limit the company’s ability further in 2020.
Russian utilities company​ ​Rosseti​ (Russian Grid) recommended dividends for FY19 at RUB 23.0bn ​on 6 May, with RUB 17.99bn outstanding
88​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com