IC Market Espresso 16 Jan 2019

Overview of Fondul Proprietatea’s Current NAV

Fondul reported a total NAV of RON 10.2bn (EUR 2.19bn) (-5.6% YoY) which translates into a NAV per share of RON 1.4095 (+14% YoY). Share price, as of 15 January amounts to RON 0.848 (+2.2% YoY).

As Fondul Proprietatea published their NAV as of 31 December 2018, we bring you it’s short overview.

According to the latest NAV report, Fondul reported a total NAV of RON 10.2bn (EUR 2.19bn) which translates into a NAV per share of RON 1.4095. When comparing it to the same period last year, their NAV decreased by 5.6%, while NAV per share increased by 14%.

On the other hand, when comparing MoM, Fondul’s NAV increased by 2.3%, while their NAV per share increased by 2.6%. This shows that the Funds NAV was not affected by the turmoil in the Romanian market caused by the series of fiscal measures adopted in December 2018 in order to fill the Governments budget gap, which was met with a lot of investors’ concern, resulting in significant price drops. However, Foundul’s price per share decreased in December by 6.2%

Fondul has recently stated that the impact of the Emergency Government Ordinance on the Fund’s unlisted assets will depend on the level of the price cap for electricity generation companies and the degree to which some of the additional taxes will be passed through in the tariffs by the electricity and gas distribution companies. The share prices of the listed companies in the Fund’s portfolio have already reacted to the potential negative impact from the initial draft and have recovered part of the losses upon the approval of the amended OUG.

Next, when observing the portfolio structure, it remains traditionally oriented towards the power, oil and gas sectors, whereby the two largest holdings, Hidroelectrica and OMV Petrom account for 58.4% of the total NAV.

Meanwhile, when compared to the same period last year, the Fund reduced their net cash & receivables (-9.2 p.p.), while they increased their exposure to unlisted equities (+9 p.p.), which account now for 72.47% of the total NAV. Listed equities remained flattish, accounting for 22.7% of the total NAV.

Turning our attention towards the share’s price performance, as of 15 January, the share price amounted to RON 0.848, marking a 2.2% increase YoY, while NAV per share increased by 14% YoY. The discount to NAV per share increased by 10 p.p YoY and currently stands at 40%. Note that it amounted to 37% on the 31December 2018.

Furthermore, we also observed the historical movement of Romanian close-ended funds’ discount. Among the observed funds, the highest discount was recorded by SIF Muntenia with a discount rate amounting to 65%, followed by SIF Banat (58%), SIF Oltenia (38%). Note that SIF Transilvania and SIF Moldova did not yet post their NAV as of 31 December 2018.

Ilirija Publishes Investors Presentation

Ilirija published an overview of its history and investment plans. Full presentation available via link.

Ilirija, a Croatian tourist company, published their Economic and Social Aspect of Business in which they gave an overview of their performance.

According to their presentation, their portfolio consists of 4 hotels,  805 berths and 1220 camping pitches. The presentation also consists of the companies history from it being founded in 1957 to the second recapitalization which occured in 2016.

Further they report their Top line, EBITDA and bottom line from the period 1999 to 31.10. 2018. According to their Q3 2018 report, they recorded total revenues of HRK 143.9m, EBITDA of 65.1m and net income of HRK 53.5m.

Moreover, the presentation also states their investments for the period form 2000 to 2018 which amount to HRK 511.8m, while they expect that the invesments to amount to HRK 150m over a three year period.

The full presentation can be found in the link here.