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 ($)	0.670
Market Cap ($m)	77
Enterprise Value ($m)	21
Shares Outstanding	114,679,552
Code	KVBZ

Recommendations

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

Indicator	2018	2019	2020	2021	2022E
Sales ($m)	203	322	***	***	***
EBITDA ($m)	20	43	***	***	***
Net Income ($m)	18	32	***	***	***
Net Debt ($m)	(20)	(32)	***	***	***

Indicator	2018	2019	2020	2021	2022E
P/E	4.29	2.39	***	***	***
P/Sales	0.38	0.24	***	***	***
EV/EBITDA	2.8	1.0	***	***	***
P/Book	0.80	0.56	***	***	***

Kryukiv Rail Car – Reports very weak 1H21 results

Kryukiv Rail Car (KVBZ), the largest local producer of freight railcars and only manufacturer of passenger railcars, saw further operating and financial weakness in 2Q21/1H21. The company managed to sell only 314 freight cars in 1H21 (incl. 232 cement cars, 52 open cars, 20 tank cars, and 10 box cars), down from 948 in 1H20 (-67% y-o-y). In 2Q21, production was marginally weaker q-o-q, down 4% to 154 freight cars (-52% y-o-y). On top of this, prices were volatile. In 2Q21 production prices of open cars (the most widely used type of railcar in Ukraine) averaged $39,000/unit (but selling prices were even lower at $35,000) — marginally up from $38,000 in 1Q21 but 10-20% below levels in pre-pandemic 2019. As a result, 1H21 revenues slumped by 64% y-o-y to $23m. EBITDA went negative at $5m (vs. +$3.4m in 1H20 and +$27m in 1H19), and the company booked a net loss of $6m, down from net income of $2.0m in 1H20 and $21m in 1H19. The net cash position shrank, to $34m as of end-1H21 from $40m at end-1H20 and $56m at end-2020.

Jul 27, 2021

| Railcars

Kryukiv Rail Car — Receives first payment under contract to make 100 passenger cars

Kryukiv Rail Car (KVBZ), the largest local producer of freight railcars and only manufacturer of passenger railcars, reported receiving 30% of the funding under a UAH 3.0bn ($0.1bn) contract to make 100 passenger cars for state rail monopoly Ukrainian Railways. KVBZ is launching the production and needs to supply the finished cars by end-July 2022.