OREANDA-NEWS. February 09, 2010. In general, we view data on FY 2009 operating results and housing completions from the group as neutral. Despite the hardships experienced by the construction sector last year, PIK Group has demonstrated marginal growth in housing completions over 2008.

The group has reported an annualized growth in housing completions in 2009 of around 8.7%. In absolute figures, however, the results appear to be fairly weak, showing a downturn of over 40% over 2007.

In our view, the posted results will have no tangible impact on the company’s stock valuations. 2009 turned out to be a complex year for the entire construction sector, and growth in construction volumes for the market as a whole were observed only in the second half of the year. New construction stagnated due to scarce funding and a lack of solvent demand. We expect the company to give a more impressive performance in 2010, notably on the conclusion of state contracts to build housing for the Defense Ministry, which will ensure the company a stable source of financing for its projects.

Housing completions, thou sq m – 884, including: on order from the Moscow city government – 152. Geographic distribution of housing, thou sq m: Moscow - 301, Moscow region – 401, Russian regions – 182.