swb33equityweekly17.08.2009

8/14/2019 SWB33EquityWeekly17.08.2009

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Attention: Please note important background and customer information at the end of this report

EstoniaNordecon International published its Q2 and H1 results last week. Salesfigures were slightly less than expected but the profitable result at thebottom line was a positive surprise. Total sales of the group amounted to

40.5m (-42.2% Y-o-Y) in Q2. The H1 sales totaled 78.3m, -34.5% Y-o-Y.The net profit reached 364k and the margin was tiny 0.9% in Q2 2009. TheH1 was ended in a small profit as well, 329k with the margin of 0.4%.

Baltika announced it will pull out of Czech Republic, citing inability torenegotiate rental agreements and overall the difficulty of sustaining theoperations during the times when liquidity in parent company is thin.Liquidation expenses will amount to roughly 0.6m over next 6 months,while the company will save around 1m in 2010 from the closure. CzechRepublic sales were only 2% from total sales of the group after 6M 09, thus

top line effect is very small but savings on the bottom line are welcome atthis point. We believe that company has had little choice but to close theoperations due to disproportionally large losses the subsidiary has beentaking. Our recommendation and TP are under review.

Latvia

No Corporate News.

Lithuania

On Thursday, the information was announced in the media stating E. OnRuhrgas International intends to sell its shares of electricity distribution andsupply company Rytu Skirstomieji Tinklai. Currently E. On RuhrgasInternational owns 20.28% of RST shares and 38.91% of Lietuvos Dujosshares.

Baltic Indices

205

225

245

265

285

305

14-May 28-May 11-J un 25-J un 9-J ul 23-J ul 6-Aug

Baltic Benchmark OMX Tallinn*

OMX Riga* OMX Vilnius*

Source: Reuters, Swedbank* Relativ e to Baltic Benchmark

Tra il. 4Q 0 9F La st Q 0 9F

Arco Vara 0.16 6.7% 415113 -0.2 -2.0 0.3 0.4

Baltika 0.57 3.6% 1063701 -1.3 -2.1 0.9 0.8

Eesti Telekom 4.77 5.8% 732443 8.1 10.1 3.2 2.7

Ekspress Grupp 1.07 30.5% 24510 6.4 4.8 0.5 0.4

Harju Elekter 1.84 8.2% 13865 22.8 23.4 1.2 1.2

Jrvevana 0.30 7.1% 36113

Merko Ehitus 4.19 10.3% 218100 14.6 -32.6 0.6 0.6

N ord ec on Interna ti on al 1 .0 7 17.6% 291196 12.8 -20.2 0.7 0.7

Norma 2.88 7.9% 11413 9.7 -28.3 0.7 0.7

Olympic Entertainment Grou 0.62 1.6% 9328141 -3.2 -29.3 0.8 0.7

S il van o F as hi on Grou p 0 .5 5 31.0% 498509 -2.0 -40.6 0.6 0.5

Tallink 0.36 5.9% 3672054 52.2 -38.5 0.4 0.4

Tallinn a Kau ba maja 3.6 3 3.4% 215244 -63.4 384.0 1.3 1.3

Tallinna Vesi 8.90 6.6% 76433 9.5 9.6 2.4 2.1

Viisnurk 0.54 17.4% 154012 161.1 3.4 0.5 0.5


Grindeks 3.70 -0.8% 8396 3.9 5.4 0.7 0.7

Latvian Gas 4.62 7.2% 1105 9.1 0.6

Latvian Shipping Company 0.51 4.1% 94283 1.9 1.5 0.2 0.2

Latvijas Balzams 1.28 -1.5% 1172 4.3 0.3

Liepajas Metalurgs 0.96 -5.9% 28363 0.9 0.2

Olainfarm 0.59 -4.8% 23158 -7.4 23.7 0.5 0.5

SAF Tehnika 0.60 0.0% 70887 -2.0 0.9 0.2 0.2

V almiera Fib re G lass 0.3 7 2.8% 15262 0.7 0.3

Ventspils Nafta 0.98 1.0% 3032 2.8 0.3


Apranga 2.34 14.1% 141289 18.1 -3.5 1.0 0.9

City Service 5.86 9.1% 27206 10.2 7.0 1.8 1.4

Grigiskes 0.56 -1.8% 92562 -7.4 0.5

Invalda 1.55 5.4% 90634 -0.6 0.4

Klaipedos Nafta 1.00 3.1% 505101 12.7 0.8

Lietuvos Dujos 1.65 6.5% 518926 19.4 12.3 0.4 0.4

Lietuvos Energija 2.01 -4.3% 131501 -38.4 0.5

Lietuvos Juru Laivininkyste 0.39 2.6% 430754 -1.9 0.4

Lifosa 28.50 4.4% 10867 3.8 0.7

Panevezio Statybos Trestas 2.61 1.6% 98805 1.4 0.4

Pieno Zvaigzdes 2.44 1.2% 10872 15.7 4.4 0.9 0.8

Rokishkio Suris 2.41 9.5% 100639 -10.7 0.6

RST 2.35 16.3% 339393 -13.3 0.5

Sanitas 7.80 4.0% 8456 -9.5 1.0

Siauliu Bankas 0.73 0.0% 221356 3.0 0.5

Snaige 0.47 4.4% 1712663 -0.4 0.2

Snoras 0.61 3.4% 727199 0.9 0.3

TEO LT 1.37 3.8% 6024558 6.7 7.2 1.0 1.1

Ukio Bankas 0.71 0.0% 881035 0.8 0.3

Source: Reuters, Swedbank

P/E P/BV

Estonia (in )

Last

Close

Weekly

Change

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Volume

Latvia (in LVL)

Last

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Weekly

Change

Weekly

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Lithuania (in LTL)Last

CloseWeeklyChange

WeeklyVolume

P/E P/BV

P/E P/BV

Equity Weekly

Index value Weekly Change,% Weekly Turnover

Estonia 342.4 6.49% 13,9m

Last week we saw high institutional activity on Tallinn Stock Exchange withdecent volumes and sharp gains. Big blocks were crossed in Olympic, buyersmainly from US. Higher institutional demand was recorded in Estonian Telecomand Tallink. As well many buyers on the market in Tallinna Vesi, Merko andTallinna Kaubamaja.

Latvia 278 3.57% 0,3m

A bit higher trading activity was seen last week in Riga as total weekly turnoverreached LVL 181k. OMX Riga index gained 3.57% to 278.04 points. Somebuying interest was seen in LASCO which slightly increased by 4% to LVL 0.51and SAF Tehnika which remained stable around LVL 0.60

Lithuania 223.5 6.65% 4,3m

As usual, TEO LT was most actively traded stock on Vilnius Stock Exchange,institutions mainly from US and Scandinavia involved. Institutional demand wasquite decent in Snaige. Several bigger blocks crossed at LTL 0.45 level. As wellin RST and Lietuvos Dujos - sellers mainly locals, buyers from Western Europe.

Equity Research - Monday, August 17, 2009


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Equity Weekly August 17, 2009


The draft resolutions of the Extraordinary General Meeting ofRokiskio Suris shareholdersto be held on 31 August include the decrease of authorized capital by LTL 4271636 byannulment of 4271636 ordinary registered shares. As a result, the authorized capital willmake LTL 38444894 ordinary registered shares. What is more, the company intends tobuy back up to 10% of own shares. The period during which the company may purchaseown shares - 18 months from the approval of resolution. Maximum purchase price set isLTL 12 per share, and minimum purchase price is LTL 1 per share. A reserve of LTL 10m(2.9m) for purchasing of own shares will be formed.

Zemaitijos Pienas acquired 32% shares of Latvian incorporated company SIA "Muizaspiens", which implements wholesale and retail trade. The deal value is undisclosed.

The consolidated sales of diary manufacturerVilkyskiu Pienine for July amounted to LTL13.8m (4m), i.e. 31% down YoY. However, the sales during January - July remained flatYoY and amounted to LTL 84.5 million (24.5 million).

Achema Group realized the official offer to buy the shares of KLASCO-Klaipedos JuruKroviniu Kompanija. During the period of official offer 94068 shares were bought (0.74%authorized capital) of Klaipedos Juru Kroviniu Kompanija. The price of the official offer wasLTL 13 per share. During the 6 months of 2009 Klaipedos Juru Kroviniu Kompanija earnedLTL 61.9m (17.9m) pre-audited income.

On Wednesday the refrigerator manufacturer Snaige decided to close down itsrefrigerators manufacturing factory in Kaliningrad, Russia. Manufacturing activity at thisfactory has been suspended since 2 March 2009. The company plans to sell the premisesof Kaliningrad factory, while the equipment will be transported and used in the main factoryin use in Alytus. The company will incur LTL 70m (20.3m) losses due to failed investmentsin Kaliningrad.

In Q2 2009, the turnover of Vilniaus Baldai dropped 13.4% YoY to LTL 28.8m (8.4m).EBITDA almost doubled to LTL 3.4m (987k). Net profit was LTL 1.2m (348k), comparedto net loss of LTL 1.8m (523k) a year ago.During 1H2009 the turnover remained flat and amounted to LTL 63.7m (18.4m). EBITDAsoared 39.2% YoY to LTL 5.4 (1.6m). Net profit was LTL 1.2m (354k), compared to netloss of LTL 3.7m (1m) during the same period in 2008.


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Investor Calendar:

Date Description

Estonia

20.08.2009 Tallinn Stock Exchange is closed (National Holiday)

Latvia

17.08.2009 OLK1R - 6M non audited financial report17.-21.08.2009 ELG - 6M non-audited financial report

20.08.2009 NKA1R - 6M non-audited financial report

20.08.2009 LME1R - 6M non-audited financial report

Lithuania

17.08.2009 LFO1L - Sales revenue in July 2009

Source: NASDAQ OMX


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swb33equityweekly17.08.2009

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