At the end of the Thursday session at GPW, increase by 1.34% brought the PKP CARGO share price up to PLN 88.50. The capitalisation of the company reached the level of nearly PLN 4 billion. The Thursday increases are the effect of, among others, publication of results for 2014 and recommendations of the Management Board concerning the payment of dividend from profit amounting to PLN 110 million. This information is confirmed by the analysts’ forecasts depicting bright perspectives of the company – since the beginning of this year, the leading brokerage houses have clearly indicated BUY or HOLD recommendations. According to forecasts of certain analysts, price of PKP CARGO shares may exceed the value of PLN 100 per share in the upcoming months’ perspective.
WARSAW, 16-3-2015 — /EuropaWire/ — Effective delivery of the international development strategy and implementation of cost optimization were reflected by the growing interests of the investors in the company. The analysts have unanimously increased the target price of PKP CARGO shares. Four brokerage house set it at the level slightly below PLN 100 (BESI: PLN 98.90, Raiffeisen: PLN 97, DI Investors: PLN 97 and DM PKO BP: PLN 93.00), whereas Wood&Company, in its report dated 30 January, forecasts the price level at PLN 107. Report of the Ipopemy analysts of 27 January forecasts the price to reach even PLN 109. On 9 February Societe Generale set the target price at PLN 104.00.
“The investors appreciate our commitment to the implementation of the development strategy and increasing the company’s value. Within several last months, we have successfully undertaken three important initiatives, including two large acquisitions in Poland and Czech Republic, as well as the Voluntary Leave Programme, which will bring annual savings exceeding PLN 100 million to the PKP CARGO corporate group in the upcoming years”, says Chief Executive Officer of PKP CARGO Adam Purwin. “After more than a year-long presence on the stock exchange, we proved our effectiveness and commitment in delivery of the strategy announced during the stock exchange debut. This is proved by recommendation of the Management Board to pay this-year dividend in the amount of PLN 110 million. In addition, with respect to EBITDA margin, our company has already become one of the most profitable transport industry entities in the EU”, adds Adam Purwin.
Value of PKP CARGO SA shares has increased by app. 30% comparing to the sales price set in the public offering of autumn 2013 (PLN 68). In addition, PKP CARGO shares do better than the mWIG40 index, which includes the securities of the carrier. When comparing to the companies of similar profile, i.e. Russian companies: GlobalTrans and TransContainer listed at the London Stock Exchange, the Polish company has produced also higher rate of return since autumn 2013.
The objective of PKP CARGO for 2015 is to extend its customer base, more effective use of rolling stock depot, strengthening the position of integrated logistics operator and expansion in Europe, in particular in the Baltic – Adriatic – North Seas triangle. Delivery of this objective will be facilitated by acquisitions and agreements made by PKP cargo within the last few months. Both the planned purchase of AWT and establishing the cooperation with HZ Cargo open the gate to strengthen the company’s position in Central and Southern Europe, whereas merger of PS Trade Trans will extend the service portfolio. In addition, in February PKP CARGO entered into the initial agreement with KGHM on purchase of 49% of shares in Pol-Miedź Trans (PMT) company from the copper tycoon, which will translate into extending the customer base and opportunity of more effective use of rolling stock depot.
Recommendations for PKP CARGO shares from the last weeks are presented below:
|Raiffeisen||3 March 2015||Hold||97.00|
|DM PKP BP||12 February 2015||Hold||93.00|
|Societe Generale||9 February 2015||Buy||104.00|
|DI Investors||2 February 2015||Hold||97.00|
|Wood&Company||30 January 2015||Buy||107.00|
|Ipopema Securities||27 January 2015||Buy||109.00|
|Espirito Santo Investment Bank||26 January 2015||Buy||98.90|
Spokesman for PKP CARGO S.A.
(+48) 783 91 51 34
PKP CARGO Group is the leader in rail freight in Poland and the second largest operator in the European Union. It was established in 2001. In the area of logistics services, it runs land transport operations (rail and road) and maritime operations (ferries). It owns the largest fleet of freight rolling stock in Poland. The carrier runs a thousand of trains on average every day, providing services to 10,000 customers. It operates its own freight cargo services in Slovakia, the Czech Republic, Germany, Austria, Belgium, the Netherlands, Hungary and Lithuania.
PKP CARGO Group includes such subsidiaries as Cargosped (responsible for intermodal operations), PS Trade Trans (national and international rail freight forwarding services) and PKP CARGOTABOR (one of the world’s largest freight companies).
In 2013, PKP CARGO Group generated a revenue of PLN 4.8 million and a net profit of PLN 65 million, having moved 114 million tonnes of cargo.
On 30 October 2013, PKP CARGO was floated on the Warsaw Stock Exchange, becoming the first stock-listed rail freight operator in the EU. The public offering, during which PKP S.A. sold almost 50 percent of shares of PKP CARGO, totalled PLN 1.42 billion. The Company is now part of the mWIG40 index. PKP S.A. remains its major shareholder.
PKP CARGO Group is active in the area of CSR. It follows the standards of responsible employment policy and carries out a range of environmental activities. Additionally, it is a patron for railway artefacts such as those collected in Parowozownia Wolsztyn, the only museum of its kind in Europe.