The PIK group, rated among Russia’s largest development companies, has disclosed its preliminary operating results for 1H 2008. The company said it had expanded its portfolio of completed project areas by more than 32% from 2007.
Table PIK group: basic financials for 1H 2008, thous. sq. m
| Indicator | 2006 | 2007 | 1H2007 | 1H2008 | Change 1H2008/1H2007 |
|---|
| Total number of sq m built | 1244 | 1542 | 316 | 418 | 32% |
| including: | | | | | |
| on order from the Moscow city government | 376 | 196 | 24 | 10 | -58% |
| Division of sq m built in geographical terms | 1244 | 1542 | 316 | 418 | 32% |
| Moscow | 744 | 528 | 191 | 33 | -83% |
| Moscow region | 340 | 643 | 58 | 346 | 496% |
| Other Russian regions | 160 | 371 | 67 | 39 | -42% |
Source: company data, Finam estimates
We are positive about the operating results posted by the PIK group and view them as a support to its stock valuations. The group continues to energetically strengthen its position on the residential housing market in the Moscow region. Given the rapidly growing prices on this market, we believe that the strategy chosen by the company will enable it to markedly improve its financial performance in the mid-term.
We estimate the fair value of the PIK group at USD 35.4 per share, which implies an upside potential of more than 50% to the current stock valuations.
0.569
0.073
