OREANDA-NEWS. February 04, 2010. Seventh Continent published its 4Q09 trading figures, showing gross retail sales up 12% in ruble terms. The 2009 top line of approximately RUB44.6bn is nearly in line with our estimate (RUB45.1bn), though it is 7% above the BBG consensus of RUB41.5bn. The company's 2009 Lfl performance was positive at 4.2%, with an estimated 6.6% Lfl growth for 4Q09, reported the press-centre of OTKRITIE Financial Corporation.

View: Seventh Continent has shown strong operating results, both in 4Q09 and throughout the year. Though the company outperformed Dixy and Magnit in 4Q09, we would like to see the operating figures for the next quarter, in order to determine if this constitutes a continuing trend.

Valuation and Action: The stock is currently trading on a 2010 EV/ EBITDA of 8.8x, which is 24% below its EM peers. Although the company posted very good results in 4Q09, it is too soon to determine whether this constitutes a continuing trend. We are currently reviewing our model for the company.