MHP

MHP is the largest poultry producer in Ukraine with a 58% share of industrially produced poultry in 2016 and 33% of domestic poultry consumption (incl. imports). Sales of chicken meat and related products account for about 60% of annual revenues.

Shareholders Structure

SUMMARY

Market Price ($) 8.800
Market Cap ($m) 942
Enterprise Value ($m) 2,209
Shares Outstanding 107,038,208
Code MHPC LI

Recommendations

FV ($) ****
Upside (%) ****
Recommendation ****
Indicator 2016 2017 2018 2019E 2020F
Sales ($m) 1,135 1,288 *** *** ***
EBITDA ($m) 415 459 *** *** ***
Net Income ($m) 69 230 *** *** ***
Net Debt ($m) 1,081 1,032 *** *** ***
Indicator 2016 2017 2018 2019E 2020F
P/E 13.69 4.09 *** *** ***
P/Sales 0.83 0.73 *** *** ***
EV/EBITDA 4.9 4.3 *** *** ***
P/Book 1.36 0.96 *** *** ***

MHP is the largest poultry producer in Ukraine with a 58% share of industrially produced poultry in 2016 and 33% of domestic poultry consumption (incl. imports). Sales of chicken meat and related products account for about 60% of annual revenues.
Year 2024 2026 2029
Issue Volume ($m) 500 550 350
Coupon Rate (% p.a.) 7.75% 6.95% 6.25%
Coupon Frequency S/A S/A S/A
Maturity date 5/10/2024 4/3/2026 9/19/2029
Ratings: Moody`s/S&P/Fitch -/B/B+ -/B/B+ -/B/B+
Market Price* ($) 105.75 103.00 96.00
Market YTM* 6.26% 6.37% 6.81%
Spread over UST* 457 449 493
Note: *Based on bid price.
Year 2018 2019E 2020F
Net Sales ($m) 1,556 *** ***
EBITDA ($m) 450 *** ***
Net Income ($m) 128 *** ***
EBIT Coverage Ratio (x) 2.33 *** ***
Net Debt/Equity (%) 122.3% *** ***
Covenants
Restriction on payment of dividend -
Financial Reports A - within 135 days; S/A - within 90 days
Max. Consolidated Net Debt/EBITDA* 3:1
Events of Default
Failure to pay 30 days
Cross default $10m
Expiry of license, illegality, insolvency etc. -
Judgements $10m/60 days

Latest news about MHP

Nov 13, 2019
| Poultry

MHP — Ukrainian antitrust body alleges monopoly abuse

Ukraine’s Antimonopoly Committee (AMC), reporting results of its study of the domestic poultry market in 2016-2018, said it opened a probe into LSE-listed MHP, suspecting it of abusing its market dominance. The AMC said MHP, its 45% market share in 2018 allowing for characterizing it as a “monopolistic (dominant)” player, practiced restrictive policy with respect to meat distributors and committed other violations, including hiking prices with no economic justification in July-August 2017.
Oct 22, 2019
| Poultry

MHP — Announces redemption price for 2020 notes

LSE-listed MHP, Ukraine’s largest poultry producer, redeemed its outstanding 2020 8.25% notes, totaling $79.4m in the aggregate principal amount, at $1,031.48 per $1,000, spending $81.9m in total).
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