To put things into a perspective, the deals account for 7.9% of trailing 12m consolidated revenues.
AD Plastik published an announcement stating that the Group has sealed new deals in Serbia worth EUR 6.5m with PSA Group for the production of grab handles for the Peugeot 308 vehicle. Production is scheduled to begin in the Q2 of 2021, and the project is expected to last 9 years.
At the same time, a deal on the production of grab handles was sealed with the company TOGG, the first Turkish car manufacturer, for the C-SUV electric vehicle. The grab handles will also be produced in Mladenovac, and the total value of the deal amounts to EUR 1.4m. The start of serial production is planned for the Q2 of 2023 with an estimated project duration of 5 years.
The production of visible interior components for the new Alfa Romeo Tonale vehicle sealed with the FCA Group will take place in Croatia, and the total value is EUR 4m. The start of serial production is planned for the Q1 of 2022 with an estimated project duration of 8 years.
In Russia, new deals have been sealed with the VW Group and the Renault-Nissan-AvtoVAZ Alliance, worth a total of EUR 2.2m. The start of serial production regarding part of the projects is planned for 2021 with an estimated duration of three and a half and six years, respectively. A serial production for the second part of the projects is planned to start in 2022 and an estimated project duration is 4 years.
To put things into a perspective, the above-mentioned deals account for 7.9% of trailing 12m consolidated revenues.
For today we decided to present you with ROE and capital structure of regional industrial companies.
For this we used H1 2020 results. Note that Đuro Đaković has been excluded as the company currently operates with negative equity, as a result of accumulated losses.
Among the selected companies, Ericsson NT recorded the highest ROE of 19%, which is particularly interesting as the company is majority equity funded. Besides that the company operates with negative net debt. We note that all companies beside AD Plastik operate with a negative net debt.
ROE of Selected Companies (H1 2020)
Cinkarna Celje comes next with a ROE of 11.3%, while the company is 92% equity funded.
Of the Serbian companies, 2 are practically entirely equity funded (Alfa plam and Messer Tehnogas), while Jedinstvo and Metalac operate with some debt but are also predominantly equity funded.
Of the observed companies Končar recorded the lowest ROE of 2.7%, which could be attributed to a sharp decrease in net profit in 2019 (-55.8%). As a reminder, the company’s share of profit from undertakings with participating interest decreased by HRK 34.34m to HRK 13.71m. The mentioned drop mostly came on the back of a lower performance of Končar – Energetski transformatori in which the Group has a 49% stake. Since then Končar has recorded two solid quarters, with H1 net profit to majority increasing by 180%.
Capital Structure of Regional Industrials