To put things into perspective, the deals make up for 26.4% of the company’s 2018 operating consolidated revenues. Although contracts have a multi-year duration, in our view such a strong increase in contract backlog further fosters the stability and growth prospects of the company.
AD Plastik published an announcement stating that they have concluded new deals for PSA and FCA Group. Regarding the latter, the company has sealed a EUR 20.7m contract for vehicles Jeep Compass and Fiat 500e. Within the total deal value, EUR 13.9m was concluded for production of interior components and air ducts for Fiat 500e (starting in 2020 with project duration of 8 years) while EUR 6.8m was concluded for production of grab handles for Jeep Compass (starting in 2020 with duration of 4 years)
Regarding the former or PSA Group, deal value amounts to EUR 26.1m split onto four different parts. The largest part relates to EUR 20m for the production of grab handles for several models of Peugeout, Citroen and Opel). The estimated project duration is 10 years, while the production is planned to start in 2019. Secondly, EUR 3 million relates to production of side trims for Citroen C3. (starting in 2020 / duration of 4 years). Lastly, 1.7m contract relates to production of speaker brackets for the vehicles Citroen Picasso and C-Elysee while 1.4m relates to production of inner engine covers. Both deals start in 2020 with expected duration of 8 and 7 years, respectively.
With the remaining Romanian SIFs publishing their NAV reports for March we follow up on our yesterday’s flash news regarding Fondul’s current NAV, with comparison of Romanian close-end funds’ NAV discount.
Current Price To NAV Discount (%)
Source: Bloomberg, InterCapital Research
Among the observed funds, the highest discount was recorded by SIF Muntenia with a discount rate amounting to 64%, followed by SIF Banat (53%), SIF Transilvania (49%), SIF Moldova (36%), SIF SIF Oltenia (36%) and Fondul (34%).
Out of the observed SIFs one should highlight SIF Transilvania whose discount amounts to roughly half of their NAV, despite the rather favourable asset class structure with listed equities accounting for 89% of the fund’s assets. One should also highlight SIF Oltenia who will soon hold a shareholders meeting where they will vote on a share buy-back program through which 30,000,000 shares (representing 5.1709% of share capital) are to be bought back at a maximum price of RON 2.75 per share.
Note that the Romanian Law prohibits any single shareholder to hold more than a 5% stake in the observed SIF funds. Although it might not be the key reason why, it is certainly a contributor to why some SIFs have such a high discount to their NAV.
To read more about Fondul’s current NAV please click on the following link.
Historic Price To NAV Discount (%)
Source: Bloomberg, InterCapital Research