ADMIE Holding

ASE: ADMIE

€394.4m market cap

€1.7 last close

ADMIE Holding is a holding company that owns a 51% stake in IPTO, a Greek regulated utility. IPTO owns, manages and operates the Greek electricity transmission grid. The network includes 11,801km of high voltage lines. The company plans a c €4bn investment plan over the period 2019–27.

Investment summary

ADMIE Holding offers exposure to growth in the Greek electricity transmission grid IPTO, a regulated utility with significant growth opportunities from investments in new transmission lines. IPTO’s underleveraged balance sheet (0.9x adjusted net debt/EBITDA at the end of 2018) sustains a c €4bn investment plan, which we estimate will result in a regulated asset base (RAB) CAGR of 11% in 2018–27. Although we believe the regulatory allowed rate of return is set at a level in line with cost of capital and the company has strong growth potential, ADMIE Holding’s current share price implies a c 40% discount to 2019 equity RAB (including work in progress) and a more than 20% discount to EU regulated utilities’ P/E multiples.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 0.0 25.1 25.1 10.84 15.7 N/A
2018A 0.0 36.2 36.4 15.68 10.8 N/A
2019E 0.0 36.2 36.4 15.67 10.8 N/A
2020E 0.0 39.7 39.8 17.18 9.9 N/A
Last updated on 16/05/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (€m) 6.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.4) 4.7 3.5
Relative* (5.1) (3.9) 9.3
52-week high/low €1.8/€1.5
*% relative to local index
Key management
Eleni Zarikou Chairman
Sabrina Twiss IR