AVAX (ASE: AVAX)

Currency in EUR

Last close As at 04/12/2023

EUR1.53

0.14 (10.07%)

Market capitalisation

EUR200m

Based in Greece, AVAX operates through three main segments: construction, concessions and real estate & marinas, with a large international footprint. The largest segment, construction, is involved in large-scale private and public works, with unique experience among its peers, in energy infrastructure and subway construction.

The Greek construction market is worth around €7.5bn and can be split into two distinct sectors, housebuilding (c 30%) and civil engineering (c 70% non-residential construction, including commercial and infrastructure projects), including both private and public works. According to ELSTAT, overall average construction activity fell by just 9.5% in 2020, before increasing 7% in 2021 and 24.4% in 2022, the highest level since 2017 in absolute terms.

Latest Insights

Industrials | Flash note

AVAX — Completed divestment from energy sector

Industrials | Flash note

AVAX — Significant international project secured

Industrials | Initiation

AVAX — Building on strong foundations

Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • Christos Ioannou

    Executive chairman

Balance Sheet

Forecast net debt (€m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.8 (11.6) 78.0
Relative (2.8) (8.3) 27.7
52 week high/low €1.8/€0.7

Financials

AVAX is a leader in Greek construction, operating critical assets with long-term and visible cash flow streams, particularly in concessions. Greek economic growth should be stimulated to 2026 by the National Recovery Plan, worth over €30bn, which should help unplug the infrastructure investment deficit. H123 results highlight the group’s progress domestically as the market improved, which more than offset the weaker international performance, and continuing operating profit rose to €16m compared to a €9m loss in H122. As Greek infrastructure investment improves, AVAX could secure an improved rating, with an attractive FY22 gross dividend yield of 5.8%. With a concessions portfolio independently valued at €130m above the recognised book value of €295m, and a current record work-in-hand level exceeding €3bn, there appears to be significant potential for investors.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2021A 592.0 51.0 0.0 1.0 153.0 N/A
2022A 403.0 58.0 19.0 9.0 17.0 N/A
2023E N/A N/A N/A N/A N/A N/A
2024E N/A N/A N/A N/A N/A N/A

Research

Flash note

Industrials

AVAX — Completed divestment from energy sector

Flash note

Industrials

AVAX — Significant international project secured

Initiation

Industrials

AVAX — Building on strong foundations

Thematics

thematic

Industrials

Deutsches Eigenkapitalforum (EKF) 2023 industrials

thematic

Industrials

The long and winding road

thematic

Industrials

Quantum computing: A booming industry

thematic

Industrials

UK housebuilders

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