Beta Sec-13.8.2021: Market Monitor, Market Comment, In the Spotlight

Market Monitor, Market Comment, In the Spotlight

  • Market Comment

ASE GI failed once again to sustain the 900 level threshold. Quite dealings preserved for yet another session impacted by holiday mood and absence of investors. Tight consolidation trading pattern with banks dragging index lower despite and CC HBC failing to close positive despite satisfactory H1:21 results.

  • The general share index lost 0.68% to close at 893.98 points. FTSE 25 retreated 0.82% to 2,143.98 level. FTSE Mid Cap shed 0.31% to 1,453.47. Among blue chips, NBG gave up 2.93%, Piraeus Bank came in 1.5% lower, OPAP lost 1.4% and OTE was 0.9% lower. In contrast, TITAN gained 1.86% on positive news flow from US new support package.

Some €26.9mn worth of stocks exchanged hands compared to €41mn in Wednesday’s session, the lowest turnover for the stock market within 2021.  In total 45 stocks advanced, 74 shed and 42 remained put.

Another dull uninspiring session expected for today on lack of domestic news flow and ahead of domestic holiday. Worries on international markets on Covid 19 resurge may weigh domestically today.

 

¢    In the Spotlight

 

Greece/Building Activity: Total building activity soared in May as the number of new building permits rose 63% y-o-y which corresponded, to 97% higher volumes, the statistics office of ELSTAT said. Issued permits amounted to 2,222. In the January-May period, new permits advanced 42% y-o-y while volumes were 58% higher.

 

Greece/Unemployment: Greece’s unemployment rate declined further in June, to 15.0% y-o-y, from the downwardly revised reading of 15.8% in May, data from the National Statistics Service of ELSTAT showed. In June 2020, the jobless rate was revised up to 17.8%. Seasonally adjusted data showed that the number of unemployed amounted to 700.1K down 15% y-o-y and 4.0% m-o-m, while the number of persons outside the labor force reached 3.2 million, down 2.7% and 1%, y-o-y and m-o-m. Job-seekers aged 15-24 and women remained the most vulnerable groups, with the unemployment rate averaging 28.3% and 18.9% respectively.

ELLAKTOR: As of today, the 133,920,002 new (CR) shares of the company are admitted to trading on the ATHEX following the recent share capital increase through a rights issue. On August 13, 2021, the total number of the company’s listed shares amounts to 348,192,005 (CR) shares.

EUROPEAN RELLIANCE: As of Monday August 16, 53,454 treasury stock (at an average cost of €5/share) is cancelled based on AGM’s decision. Outstanding number of shares amounts to 26,539,907.

LAMDA DEVELOPMENT: On August 9, Consolidated Lamda Holdings, company’s major shareholder, bought 400K shares at €8/share for a total consideration of €3.2mn.

MYTILINEOS: On August 10, the company bought 16,000 shares at €15.8342/share for a total consideration of €253.346K. Treasury now stands at 4.9695% of share capital or 7,101,004 shares.

CENERGY HOLDINGS: The company officially announced with a filling on ASE the award to its subsidiary Hellenic Cables of the project for the interconnection of Santorini Naxos Cyclades islands budgeted €79.5mn.

PRODEA: The REIT concluded the first investments funded by the proceeds of its green bond that was issued in July 2021. In the sector of green offices, the Company acquired the remaining 51% of the share capital of PANTERRA in which it already controlled a 49% stake for €15.3mn. PANTERRA is developing a green office complex located in the wider Athens center in cooperation with DIMAND. The complex consists of two operationally independent office buildings which are expected to be completed in December 2021 (Building A) and May 2022 (Building B) respectively. The total surface of the complex will be 30.9 thou sqm (13.9 thou sqm are below ground). Panterra has already concluded an agreement with GENERALI HELLAS for the sale of Building A upon completion for a consideration of €34.8mn. In the logistics sector, PRODEA concluded the acquisition of NEW METAL which owns a complex of two logistics buildings in Aspropyrgos, Attica (the main logistics hub) for €12.5mn. Finally, as mentioned in green bond’s prospectus, PRODEA fully repaid a common bond loan of €56m which had been issued for the KARELA green office complex in Paiania, northeastern Attica area.

CC HBC (Q2/H1:21 review): The company reported a better than expected set of Q2/H1:21 set of financial results characterized by ongoing recovery in volumes across all segments, market share gains and effective cost control. In more details:

•              FX-neutral revenue growth +23.1% like-for-like. Reported revenues +14.7%.

•              FX-neutral net sales revenue closed 4% above 2019 levels (like-for-like)

•              Value share gains increased, + 50bps in NARTD

•              Volume growth of 15.9% like-for-like; sustained performance in the at-home channel complemented by recovery in out-of-home during Q2

•              Improvements in FX-neutral revenue per case, benefited from pricing taken in over 90% of our markets and positive category, package & channel mix

•              Sparkling volume +16.2%, with Adult sparkling +37.0% and Low/no sugar +40.3%. Energy volume + 66.1%.

•              Costa Coffee roll-out continues to progress well; Coffee strategy strengthened with premium Italian brand, Caffè Vergnano, to start distribution by 2022

•              Operating leverage and cost savings resulted in comparable EBIT margin up 340 bps to 10.8%. €120 million of COVID-related opex savings were achieved in 2020. CC HBC expects to retain c. €20 million of this in 2021 and therefore €100 million of these costs to return in H2 2021.

•              CAPEX reached €218.4 million, 6.7% of net sales revenue, at the lower end of targeted 6.5-7.5% range.

•              Free cash flow was €277.5 million, an increase of €316.0 million compared to the prior-year period, driven by higher profitability and a significant improvement in working capital.

•              Established: FX-neutral revenue increased by 17.1% as markets reopened, driving comparable EBIT margins up 440bps

•              Developing: FX-neutral revenue up 17.6%, with stable volume performance despite impact from Polish sugar tax; comparable EBIT margins up 180bps

•              Emerging: FX-neutral revenue up 30.3% like-for-like; continued strong performance from Russia and Nigeria and recovery through the rest of the segment led to comparable EBIT margins increasing by 340bps

•              In other related news Coca-Cola HBC said it has agreed to acquire a 94.7% stake of Coca-Cola Bottling Company of Egypt from The Coca-Cola Company and MAC Beverages for a combined consideration of $427 million. CCHBC said access to the second largest non-alcoholic Ready To Drink market in Africa by volume (after Nigeria), renders significant opportunity to leverage Coca-Cola HBC’s proven route-to-market capabilities, expansion of Coca-Cola HBC’s exposure to high growth geographies underscored the reasoning for the acquisition. CCC HBC expects low-single digit EPS accretion in the near term.

Overall a sound set of H1:21 financial performance across the board.

 

The following table summarizes CCHBC Q2/H1:21 financial performance vs consensus estimates:

 

COCA COLA

2020

2021

Y-o-Y

2021

Act. vs

EUR m.

Η1

Η1

(%)

FY Est.

Est.

Sales

2,831.2

3,247.9

14.7% 

3,184.8

2.0%

EBITDA

399.8

514.7

28.7%

483.4

6.5%

EBITDA Mrg

-22.5%

15.8%

+3,835 bps

15.2%

4.4%

Net Income

124.0

233.1

88.0%

193.70

20.3%

Net Mrg

4.4%

7.2%

+280 bps

6.1%

18.0%

 

Kind Regards, 

John Kalogeropoulos

Equity Analyst

29 Alexandras Avenue

11473 Athens,Greece

Tel: +30 210 6478751

Email: ikalogeropoulos@beta.gr

Disclaimer: Beta Securities S.A. 
This e-mail is confidential. If you are not the intended recipient, you
should not copy it, re-transmit it, use it or disclose its contents, but
should return it to the sender immediately and delete the copy from your
system.

Beta Securities S.A. is not responsible for, nor endorses, any
opinion, recommendation, conclusion, solicitation, offer or agreement or any
information contained in this communication.

Beta Securities S.A.  cannot accept any responsibility for the accuracy or
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  • Beta Sec – Daily report 13-08-2021.pdf
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Kind Regards, 

John Kalogeropoulos

Equity Analyst

29 Alexandras Avenue

11473 Athens,Greece

Tel: +30 210 6478751

Email: ikalogeropoulos@beta.gr

Disclaimer: Beta Securities S.A. 
This e-mail is confidential. If you are not the intended recipient, you
should not copy it, re-transmit it, use it or disclose its contents, but
should return it to the sender immediately and delete the copy from your
system.

Beta Securities S.A. is not responsible for, nor endorses, any
opinion, recommendation, conclusion, solicitation, offer or agreement or any
information contained in this communication.

Beta Securities S.A.  cannot accept any responsibility for the accuracy or
completeness of this message as it has been transmitted over a public
network. If you suspect that the message may have been intercepted or
amended, please call the sender admin.

 

  • Beta Sec – Daily report 13-08-2021.pdf
    467.4kB