TransContainer

Moscow: TRCN

RUB95734.9m market cap

RUB6890 last close

TransContainer owns and operates rail freight assets across Russia. Its assets comprise rail flatcars, handling terminals and trucks, through which it provides integrated end-to-end freight forwarding services to its customers.

Investment summary

TransContainer posted strong growth in FY18, with adjusted revenues and net income respectively 3% and 15% higher than our forecasts. Adjusted revenues were up 12.6% to RUB31.3bn boosted by an increased share of higher value-added Integrated Freight Forwarding and Logistics Services. Operating profit grew 49% y-o-y to RUB11,559m, reflecting the strong revenue growth and expanding profit margins. We have raised our forecasts for FY19 and FY20, with revenues up 3% and net income up c 20%. We also expect net debt significantly lower than before, mainly due to lower-than-expected capex in FY18.

Y/E Dec
Revenue (RUBm)
EBITDA (RUBm)
PBT (RUBm)
EPS (RUB)
P/E (x)
P/CF (x)
2017A 27782.0 10252.0 8147.0 448.2 1537.3 897.6
2018A 31288.0 13342.0 10263.0 560.9 1228.4 671.3
2019E 34352.0 16138.0 11617.0 660.5 1043.1 565.3
2020E 37833.0 18065.0 13056.0 742.3 928.2 505.4
Last updated on 23/05/2019
Industry outlook

The Russian rail-freight market has attractive long-term fundamentals as an increasing portion of goods are transported by rail containers at the expense of box cars. Current ‘containerisation’ levels of around 7% are well below Europe and the US, which leaves significant room for improvement.

Last updated on 23/05/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (RUBm) 7002
Forecast gearing ratio (%) 13
Price performance
%
1m
3m
12m
Actual 11.2 39.6 31.9
Relative* 9.9 32.7 15.6
52-week high/low RUB6890.0/RUB4300.0
*% relative to local index
Key management
Alexander Shakhanov Deputy Director for Capital Markets & IR