Analysts Advise to Buy IDGC of Centre, JSC Shares
OREANDA-NEWS. On 14 July 2008 was announced, that the figures set out in the 2008 business plan that was approved at the Board of Directors last internal meeting, as a whole were the same as the leading analysts' forecasts. They did not change IDGC of Centre, JS„R estimation of the fair value of the shares and preserved their recommendation to buy them.
"We believe that the forecasts presented by the company are quite feasible. Thus, our forecast of IDGC of Centre, JSC proceeds and EBITDA appeared a bit more conservative than the company's plans. However, our forecasts were more optimistic concerning the net profit. We believe that the difference will not influence essentially the estimation of fair cost of IDGC of Centre, JSC shares, thus, we do not change the model," noted ЃgInvestGURUЃh information analytical centre. "We also keep a positive opinion on distribution companies as a whole; it can be explained, first of all, by the company's switch to progressive tariff regulation system that is based on the return on the invested capital (RAB method). Gradual growth of demand on electric energy transfer services is one of the factors of the distribution grid companies capitalisation development. Our leaders of the distribution grid system include IDGC of Centre, ЃgIDGC of Centre and Volga RegionЃh, and ЃgIDGC of the North-WestЃh. Our target price under IDGC of Centre, JSC shares equals .105; the analysts' advice is to buy the shares".
We would like to remind that IDGC of Centre, JSC business plan contains the following main indicators of the company's efficient activity: return on the own equity (ROE) under the plan should be 5.79 %. Compared to the 2007 results, ROE equalled 5,20 %. Electric power losses for the network supply should not exceed 9.6 %. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) Ѓ\ 7,741. 9 million roubles, net assets Ѓ\ 41,057. 6 million roubles, net profit Ѓ\ 2,271. 1 million roubles. Compared to the 2007 results, total net assets of the company equalled 39,086 million roubles, EBITDA (for 31.03.2008) Ѓ\ 6,600 million roubles.
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