Retail chain Magnit released preliminary operating results for 5M 2008. The company said revenue shot up by nearly 51% y-o-y to USD 2,015 mn in dollar terms. The strong results are attributed to organic sales growth and new store openings. In the reporting period, the company opened 90 retail outlets, including 85 next-door stores and five supermarkets.
Table. Magnit: Basic indicators for 5M 2008, USD mn
| Indicator | 5M2007 | 5M2008 | 5M2008/5M2007 |
|---|
| Revenue (USD mn) | 1335.3 | 2015.0 | 50.9% |
| Total number of stores | 1984 | 2287 | |
| Number of newly opened stores | 91 | 90 | |
| Total retail space (thous. sq. m.) | 554.1 | 700.3 | 26.4% |
Source: company data, Finam estimates
We are upbeat on the reported operating results and believe that the strong pace of new store openings, as well as accelerating revenue growth, should allow the company to meet its yearly targets. Magnit management plans to open at least 300 next-door stores and about 20 hypermarkets this year.
According to our estimates, the fair price of Magnit shares should be USD 57.35 per share, which implies an upside potential of 15% to the current stock valuations.
0.569
0.073
