Companies

Kryukiv Rail Car

Kryukiv Rail Car (KVBZ) is Ukraine’s monopoly producer of passenger railcars and top manufacturer of freight cars, with nameplate annual capacity of 12,000 freight cars and 300 passenger cars, which was heavily underutilized in recent years. Kryukiv is among the main suppliers of railcars to Ukrainian Railway and local municipal subway operators.

Shareholders Structure

SUMMARY

Market Price ($)	0.938
Market Cap ($m)	108
Enterprise Value ($m)	87
Shares Outstanding	114,679,552
Code	KVBZ

Recommendations

FV ($)	****
Upside (%)	****
Recommendation	****

Indicator	2016	2017	2018	2019E	2020E
Sales ($m)	84	145	***	***	***
EBITDA ($m)	(1)	14	***	***	***
Net Income ($m)	(4)	12	***	***	***
Net Debt ($m)	(9)	(31)	***	***	***

Indicator	2016	2017	2018	2019E	2020E
P/E	neg.	8.61	***	***	***
P/Sales	1.28	0.74	***	***	***
EV/EBITDA	neg.	5.3	***	***	***
P/Book	1.51	1.38	***	***	***

Kryukiv Rail Car – Reports strong production growth in 2019

Kryukiv Rail Car (KVBZ), the largest local producer of freight cars and sole manufacturer of passenger railcars, reported selected 2019 operating data. The company produced 5,280 freight cars, +43% y-o-y. The company had an outstanding UAH 2.5bn contract with Ukrainian Railway (RAILUA), to supply 54 passenger cars and 6 diesel trains (for suburban passenger services), but it managed to supply and receive payment for 11 passenger cars only due the rail monopoly’s liquidity constraints. KVBZ reported 57% y-o-y growth in sales in UAH terms, implying full-year revenues of UAH 8.7bn.

Aug 13, 2019

| Railcars

Kryukiv Rail Car — Reports strong 1H19 results

Kryukiv Rail Car (KVBZ), the largest manufacturer of freight cars and sole producer of passenger railcars in Ukraine, reported stronger 1H19 operating and financial results. Over the period, the company sold 658 open cars (vs. 1,755 in 2018), 540 grain hoppers (vs. 1,723 in 2018) and 200 mineral hoppers (vs. zero in 2018). As a result, sales jumped by 76% y-o-y to $150m, EBITDA soared 265% to $27.0m and net income swelled by 203% to $21.1m, yielding an EBITDA margin of 18.0% (+9.3pp y-o-y) and a net margin of 14.1% (+5.9pp). The company was net cash positive at $39m (vs. net cash of $20m at end-2018).