TransContainer

Moscow: TRCN

RUB69751.7m market cap

RUB5020 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 delivered a significant step-up in revenue and EBITDA growth in Q3, supported by industry growth, higher efficiencies and a more favourable business mix. In December, we increased our FY18 forecasts to reflect the strong Q3 results (revenue, EBITDA and net income forecasts rose by 4%, 15% and 26% respectively). Recently released operating results for Q4 show growth accelerated further for both the Russian container market and TransContainer which is supportive for the company’s FY results.

Y/E Dec
Revenue (RUBm)
EBITDA (RUBm)
PBT (RUBm)
EPS (RUB)
P/E (x)
P/CF (x)
2016A 21988.0 7046.0 4302.0 247.5 2028.3 933.5
2017A 27782.0 11196.0 8195.0 471.6 1064.5 654.0
2018E 30249.0 13589.0 10033.0 577.6 869.1 519.5
2019E 33313.0 14871.0 10318.0 564.3 889.6 465.4
Last updated on 19/03/2019
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 6% are well below Europe and the US, which leaves significant room for improvement.

Last updated on 19/03/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (RUBm) 5331
Forecast gearing ratio (%) 11
Price performance
%
1m
3m
12m
Actual 1.0 15.5 2.6
Relative* (0.4) 9.3 (6.2)
52-week high/low RUB5295.0/RUB4300.0
*% relative to local index
Key management
Alexander Shakhanov Deputy Director for Capital Markets & IR