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 ($) 6.600
Market Cap ($m) 706
Enterprise Value ($m) 2,021
Shares Outstanding 107,038,208
Code MHPC LI

Recommendations

FV ($) ****
Upside (%) ****
Recommendation ****
Indicator 2016 2017 2018 2019E 2020E
Sales ($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 2020E
P/E 10.27 3.07 *** *** ***
P/Sales 0.62 0.55 *** *** ***
EV/EBITDA 4.3 3.8 *** *** ***
P/Book 1.02 0.72 *** *** ***

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 ($m) 500 550 350
Coupon Rate (% p.a.) 7.75% 6.95% 6.25%
Coupon Frequency S/A S/A S/A
Maturity date 5/10/2024 4/3/2026 9/19/2029
Ratings: Moody`s/S&P/Fitch -/B/B+ -/B/B+ -/B/B+
Market Price* ($) 104.00 100.50 94.75
Market YTM* 6.55% 6.84% 7.03%
Spread over UST* 627 657 641
Note: *Based on bid price.
Year 2018 2019E 2020E
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

Jun 04, 2020
| Poultry

MHP — Fitch affirms B+ rating

Fitch Ratings affirmed its rating on LSE-listed MHP, Ukraine’s largest poultry producer, at B+, with a stable outlook, with the action reflecting the agency’s revised 2020 projections due to low poultry prices, tight debt incurrence covenant headroom in 2021, yet solid liquidity. Fitch also took into account a recently approved related-party loan, being a $80m revolving credit facility to the main shareholder WTI Trading, which was temporary in nature but out of line with MHP’s historical governance practices.
Jun 03, 2020
| Poultry

MHP — Conference call notes

LSE-listed MHP, Ukraine’s largest poultry producer, held a conference call to discuss its 1Q20 financial results and outlook.
Contact us at +38 (044) 490 7120 for more information

or