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Key stock for the week 05/03—09/03
It is expected that Estonia’s construction company, Eesti Ehitus, may enjoy a rise in its share price during the start of this week. This follows the announcement on Friday after trade had closed that it had signed yet another contract. The contract, which is to design and build an 8-storey office building by July 2008, is worth EUR19.9mln, excluding VAT.
Lithuania’s pharmaceutical company, Sanitas, made an investor’s presentation on Friday afternoon in Tallinn, which may reestablish faith in the share this week, especially if the Company succeeds in impressing the investors with its February turnover announcement. It is estimated that a turnover that exceeds approximately LTL17mln may be viewed as a strong performance and that the Company has left it ghosts behind.
The Lithuanian and Estonian apparel retailers, Apranga, Baltika and PTA Grupp, are all on the radar this week. It is believed that the Apranga and Baltika February results announced at the end of last week will fail to impress, as both sets of results were below expectations. In contrast, it is believed that PTA Grupp, which announced a strong set of results, may benefit from the potential withdrawal from the other two retailers. Based on the preliminary results, PTA Grupp is relatively cheap compared to both Apranga and Baltika, with a P/E based on these preliminary results of 13x.
Last week: NO STOCK IMMUNE TO THE BALTIC FALL
Mixed reactions to annual result announcements
Pieno Zvaigzdes, Invalda and Panevezio Statybos Trestas, Lithuania’s dairy company, investment company and construction company, respectively, announced their preliminary 2006 results.
The investors responded positively to the Pieno Zvaigzdes announcement that revenues rose by 22% to LTL545mln and profits rose by 20% to LTL18.4mln, and that the Company is proposing a dividend of LTL0.20 per share. The share price rose 2.4% to LTL4.20.
The investors were less impressed with the results of Invalda, which met the Company’s own targeted profit of LTL67.8mln (the Company earned a net profit of LTL67.0mln). The share price fell by 2.1% to LTL12.87.
Investors were also unimpressed by Panevezio Statybos Trestas’ 77% increase in turnover to LTL340mln and LTL2.9mln increase in profit to LTL13.5mln. The share price fell by 15.0% to LTL15.56 following this announcement, the maximum a share price may fall in a single day.
Lithuania’s oil company, Mazeikiu Nafta, announced their preliminary 2006 results last week. They announced that revenues for the year reached LTL11.9bln, while net profit fell from LTL887.8mln in 2005 to LTL192.1mln in 2006. The reason for the fall was attributed to the rising operating costs and the extraordinary expenses incurred last year. The share price continued to remain unchanged.
In contrast, Latvia’s oil transshipment company, Ventspils Nafta, impressed investors despite the Company’s net profit falling LVL1.6mln short of the target of LVL9.0mln. The share price climbed 3.4% higher to LVL2.42.
Apranga annual profit before tax falls short of expectations Lithuania’s apparel retailer, Apranga, announced that it generated a profit before tax of LTL21mln in 2006. This result, which was below our expectations of LTL25mln, failed to impress and resulted in a 1.7% fall in the share price to LTL14.99.
The market did not react well to Estonia’s apparel retailer, Baltika, which announced that it increased the net profit by 20% to EEK87.4mln. The share price responded by falling 4.8% to EUR21.65. However, the market received the news from PTA Grupp, Estonia’s second listed apparel retailer, more favourably, with the share price increasing by 2.4% to EUR4.20. The Company announced that revenues rose by 221% to EEK425.7mln and net profit rose from a 2005 loss of EEK3.2mln to a 2006 profit of EEK42.9mln. This can be attributed to the acquisition and consolidation of Silvano Fashion Grupp into the Group.
Latvia’s shipping company, Latvijas Kugnieciba, experienced a 7.5% decline in its share price to LVL1.11 following the announcement that the Company’s revenues for 2006 rose to USD216.3mln and net profit rose by 25% to USD34.2mln.
Another contract to support Eesti Ehitus’ share price Estonia’s construction company, Eesti Ehitus, concluded yet another contract last week. The contract, which is to construct gas concrete products in Berezan, Kiev oblast, is worth EUR4.2mln excluding VAT. The share price rose on this news by 0.9% to EUR10.90.
TEO LT starts charging for its Wi-Fi services Lithuania’s incumbent telecom operator, TEO LT, experienced a decline in its share price from LTL2.72 to LTL2.64 after the Company announced that it would begin charging for its previously free Wi-Fi service. The Company intends to invest LTL35mln into the service by 2009 and intends, within the same time period, to secure approximately 100 thousand subscribers.
It is expected that Estonia’s construction company, Eesti Ehitus, may enjoy a rise in its share price during the start of this week. This follows the announcement on Friday after trade had closed that it had signed yet another contract. The contract, which is to design and build an 8-storey office building by July 2008, is worth EUR19.9mln, excluding VAT.
Lithuania’s pharmaceutical company, Sanitas, made an investor’s presentation on Friday afternoon in Tallinn, which may reestablish faith in the share this week, especially if the Company succeeds in impressing the investors with its February turnover announcement. It is estimated that a turnover that exceeds approximately LTL17mln may be viewed as a strong performance and that the Company has left it ghosts behind.
The Lithuanian and Estonian apparel retailers, Apranga, Baltika and PTA Grupp, are all on the radar this week. It is believed that the Apranga and Baltika February results announced at the end of last week will fail to impress, as both sets of results were below expectations. In contrast, it is believed that PTA Grupp, which announced a strong set of results, may benefit from the potential withdrawal from the other two retailers. Based on the preliminary results, PTA Grupp is relatively cheap compared to both Apranga and Baltika, with a P/E based on these preliminary results of 13x.
Last week: NO STOCK IMMUNE TO THE BALTIC FALL
Mixed reactions to annual result announcements
Pieno Zvaigzdes, Invalda and Panevezio Statybos Trestas, Lithuania’s dairy company, investment company and construction company, respectively, announced their preliminary 2006 results.
The investors responded positively to the Pieno Zvaigzdes announcement that revenues rose by 22% to LTL545mln and profits rose by 20% to LTL18.4mln, and that the Company is proposing a dividend of LTL0.20 per share. The share price rose 2.4% to LTL4.20.
The investors were less impressed with the results of Invalda, which met the Company’s own targeted profit of LTL67.8mln (the Company earned a net profit of LTL67.0mln). The share price fell by 2.1% to LTL12.87.
Investors were also unimpressed by Panevezio Statybos Trestas’ 77% increase in turnover to LTL340mln and LTL2.9mln increase in profit to LTL13.5mln. The share price fell by 15.0% to LTL15.56 following this announcement, the maximum a share price may fall in a single day.
Lithuania’s oil company, Mazeikiu Nafta, announced their preliminary 2006 results last week. They announced that revenues for the year reached LTL11.9bln, while net profit fell from LTL887.8mln in 2005 to LTL192.1mln in 2006. The reason for the fall was attributed to the rising operating costs and the extraordinary expenses incurred last year. The share price continued to remain unchanged.
In contrast, Latvia’s oil transshipment company, Ventspils Nafta, impressed investors despite the Company’s net profit falling LVL1.6mln short of the target of LVL9.0mln. The share price climbed 3.4% higher to LVL2.42.
Apranga annual profit before tax falls short of expectations Lithuania’s apparel retailer, Apranga, announced that it generated a profit before tax of LTL21mln in 2006. This result, which was below our expectations of LTL25mln, failed to impress and resulted in a 1.7% fall in the share price to LTL14.99.
The market did not react well to Estonia’s apparel retailer, Baltika, which announced that it increased the net profit by 20% to EEK87.4mln. The share price responded by falling 4.8% to EUR21.65. However, the market received the news from PTA Grupp, Estonia’s second listed apparel retailer, more favourably, with the share price increasing by 2.4% to EUR4.20. The Company announced that revenues rose by 221% to EEK425.7mln and net profit rose from a 2005 loss of EEK3.2mln to a 2006 profit of EEK42.9mln. This can be attributed to the acquisition and consolidation of Silvano Fashion Grupp into the Group.
Latvia’s shipping company, Latvijas Kugnieciba, experienced a 7.5% decline in its share price to LVL1.11 following the announcement that the Company’s revenues for 2006 rose to USD216.3mln and net profit rose by 25% to USD34.2mln.
Another contract to support Eesti Ehitus’ share price Estonia’s construction company, Eesti Ehitus, concluded yet another contract last week. The contract, which is to construct gas concrete products in Berezan, Kiev oblast, is worth EUR4.2mln excluding VAT. The share price rose on this news by 0.9% to EUR10.90.
TEO LT starts charging for its Wi-Fi services Lithuania’s incumbent telecom operator, TEO LT, experienced a decline in its share price from LTL2.72 to LTL2.64 after the Company announced that it would begin charging for its previously free Wi-Fi service. The Company intends to invest LTL35mln into the service by 2009 and intends, within the same time period, to secure approximately 100 thousand subscribers.