- Summary
-
- Country:
- Ukraine
- Sector:
- Basic Materials | Iron & Steel
ENMZ 12M Target: US$ 38.40 BUY - Analyst:
-
Eugen Dubogryz
edubogryz@bgcap.ge
+38 044 498 8401
Ownership structure Metinvest 90.6% -
Business overview:
Enakievo is the 7th largest steel mill in Ukraine with annual pig iron capacity of 2.5mmt. The plant is 86% owned by Metinvest, which secures Enakievo's iron ore and coke supplies. Revenues come mainly from sales of pig iron, semi-finished steel goods (billets), and finished long-rolled products. Enakievo lacks in-house steel facilities – it casts crude steel at related entity Metalen, which is situated nearby, but owned solely by Metinvest. Enakievo operates both in the upstream (pig iron facilities) and downstream (rolling mills) segments.
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Investment case:
- Best recovery from the crisis among local peers – outperformed the sector in FY09: -13% y/y vs. -20% sector average
- Vertical integration within the Metinvest Holding offers demand from related re-rolling mills and ensures raw input supply stability
- Metinvest’s value-distorting policy with respect to the plant (tolling, leasing facilities, pig iron sales over steel) makes Enakievo one of Ukraine’s least profitable metals plants
- An expansion- and efficiency-focused capex program of US$ 800mn (estimated) should yield a 55% output increase by 2016 and will subsidize the negative effects of value distortion
- Even accounting for value distortion, the stock looks attractive on the lowest prices among local peers
- Largest free float (9.4%) and best liquidity among steel peers
Recent news:
02.09.10
Steel production up 11% y/y in 8M1003.08.10
Ukrainian steel output falls 2% m/m in JulyStock Price History
Stocks
Common shares: ENMZ UK Price: 195.40 1M change, %: -7.83 DRs: n/a MCap, mn: 2061.6 6M change, %: -22.77 Default currency: UAH FF, %: 9.37 12M change, %: +61.62 Number of shares, mn: 11 FF MCap, mn: 193.2 Monthly turnover, '000: 8.27e+7 Common shs per 1 DR: n/a Net Debt, mn: n/a 6M Hi/Low: 304.80/160.00 Par value: n/a EV, mn: n/a 12M Hi/Low: 304.80/120.90 Eurobonds
Name Isin Coupon, % Maturity Mty/Ref type Price YTM, % Notes
Price, Hi/Low prices are displayed in selected currency units
MCap, EV, Net Debt - in millions of currency units
FF - % of shares in free float
FF MCap - value of shares in free float in millions of currency units
1M, 6M, 12M changes represent percentage chage of last traded price in selected currency over the respective period
Monthly turnover - in thousands of currency units
Disclaimer
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