OREANDA-NEWS. April 14, 2010. Globaltrans, posted its FY09 IFRS statement, along with some operating numbers. The results significantly outpaced both the consensus and our estimates, reported the press-centre of OTKRITIE FC.

View: The consolidation of BTS pushed up the average price per trip, which rose 11% in ruble terms (though flat YoY for GLTR as a standalone entity). In dollar terms, the price per trip amounted to USD716, which is somewhat below the figure posted for 2008 (USD 828.1).

The empty-run ratio for FY09 amounted to 46%, which means that the figure posted for 4Q09 was below 40%. According to the company, the empty-run ratio in 1Q10 remained at the same level as 4Q09, since the recovery in construction and in the business of SME’s has yet to occur.

The company outperformed the sector in 2009, with the Group's freight rail turnover increasing by 3% in 2009. By contrast, turnover for the overall Russian freight rail sector was down 12%. We had projected a 1% YoY decrease in Globaltrans’ freight rail turnover.

Valuation and Action: We reiterate our BUY recommendation for the company and see an upside risk for our valuation. Globaltrans trades on a 2010E EV/EBITDA of 7.2x, which is 10% below DM peers and 35% below EM peers.