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Original-Research: Pro Kapital Grupp AS - von BankM - Repräsentanz der FinTech Group Bank
AG

Einstufung von BankM - Repräsentanz der FinTech Group Bank AG zu Pro Kapital Grupp AS

Unternehmen: Pro Kapital Grupp AS
ISIN: EE3100006040

Anlass der Studie: Bericht H1/2018, Basisstudie
Empfehlung: Kaufen
seit: 16.11.2018
Kursziel: EUR 1,97
Kursziel auf Sicht von: 12 Monate
Letzte Ratingänderung: Keine
Analyst: Dr. Roger Becker, CEFA und Enid Omerovic

Baltic Real Estate as an Opportunity
 
Pro Kapital Grupp AS (PKG; ISIN EE3100006040, Open Market, 17E GF) is a
developer of large-scale retail and residential real estate in the Baltic
countries of Estonia, Latvia and Lithuania. The group can look back on a
long-term track record in planning, building and selling large real estate
projects in different asset classes and enjoys an extensive network among
the Baltics with dedicated local management teams. As the company's
performance is dependent on the completion and sale of development
projects, sales and earnings figures as well as cash flows are inherently
volatile.
 
Despite the high interest expenses, PKG's financial structure indicates no
excessive indebtedness. As at the end of Q2 2018, all liabilities in the
amount of EUR88.6 mln were collateralized with properties and pledged shares
in the amount of EUR181 mln (loan-to-value (LTV) ~ 49%). This in turn has two
important implications: Firstly, PKG's current debt level is far away from
its debt capacity enabling the company to raise more funds to realize
further development projects. Secondly, as the risks for banks providing
PKG with loans are quite low (LTV below 50%), terms for additional secured
bank loans should still be favorable.
 
In the first half of 2018, PKG significantly improved net income from a
loss of EUR2.6 mln in H1/2017 to a profit of EUR2.8 mln due to a notable rise
in revenues from sale of real estate (+258%). Accordingly, gross profit was
at EUR5.0 mln, +185% higher compared to previous period. Based on information
available in PKG's financial statements we anticipate continuing completion
activity of residential development projects leading to a significant
expansion of revenues from sale of real estate in the coming years.
 
Currently PKG's largest single-project is the T1 shopping and entertainment
center in Tallinn with a total investment value of EUR78.1 mln. Up to now
construction of T1 increased PKG's debt burden considerably. In November
2018 T1 started operations and should significantly contribute to top and
bottom line. Furthermore, PKG's risk-return profile is expected to improve
as risky revenues related to development projects are complemented by
stable and recurring revenue streams from T1 letting activity. This should
not only yield steady operating profits in the coming years but also enable
the company to pay a dividend on a regular basis.
 
Our fundamental DCF analysis returns a fair value of EUR1.97 per share. In
light of the current share price we rate the stock as 'Buy'.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/17209.pdf
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
http://www.bankm.de/webdyn/141_cs_Research%20Reports%20Disclaimer.html.

Kontakt für Rückfragen
BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG
Mainzer Landstraße 61, 60329 Frankfurt
Tel. +49 69 71 91 838-46
Fax  +49 69 71 91 838-50
roger.becker@bankm.de

-------------------übermittelt durch die EQS Group AG.-------------------


Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. 
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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