OREANDA-NEWS. January 13, 2010. Magnit has reported 12M09 sales figures, with net sales amounting to RUB170bn (US5.35bn). The results are in line with our forecast and with the Bloomberg consensus, reported the press-centre of OTKRITIE Financial Corporation.

View: While the results were not unexpected, we are concerned with the LfL sales, to the extent that and we are likely to review our LfL growth assumptions for 2010 (currently at 7.7%). In 4Q09 LfL sales stood at -4%, the fourth consecutive quarter that sales growth showed a decline.

Valuation: The stock is trading on a 2010 EV/EBITDA of 10.6x, which is a 12% discount to EM peers.

Action: We believe the key takeaway from the results is the continuing poor LfL performance, which carries negative implications for 2010 and 2011 top line.