KSG Agro to buy back up to 10% of free float

KSG Agro to buy back up to 10% of free float



29 листопада 2012 года
Конкорд Капитал

KSG Аgro (KSG)


KSG Agro shareholders will consider a buyback of up to 500,000 shares (3.3% of the total, 10% of the free float) at their EGM on Dec. 28, the company reported. The suggested buyback will be between PLN 1 and PLN 25, while the current market price is PLN 11.16. The company sees its shares are heavily underpriced by the market and KSG can capitalize on buying its own shares for a future resale to the market.



Alexander Paraschiy: The company’s shares have lost 40% of their value since end-June 2012, which is the worst result among Ukraine’s publicly traded farming companies: Mriya gained 10%, Agroton added 32% and Industrial Milk added 45% over the same period. KSG’s growth story does not look as promising as in the beginning of the year, with its expansion plans being corrected downwards on extremely poor weather conditions in its core region. Nevertheless, our estimates suggest the company’s harvest value will show some 15% yoy growth this season, owing to land bank expansion and crop price growth. With a low probability of this summer’s extreme drought repeating itself, the company can deliver at least a 50% harvest increase next year to become the fastest-growing Ukrainian farmer. In all, we share management’s view that KSG Agro stock is worth investing in.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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