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 ($) 9.000
Market Cap ($m) 963
Enterprise Value ($m) 2,231
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 14.00 4.18 *** *** ***
P/Sales 0.85 0.75 *** *** ***
EV/EBITDA 4.9 4.4 *** *** ***
P/Book 1.39 0.98 *** *** ***

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 ($m) 500 550 350
Coupon Rate (% p.a.) 7.75% 6.95% 6.25%
Coupon Frequency S/A S/A S/A
Maturity date 5/10/2024 4/3/2026 9/19/2029
Ratings: Moody`s/S&P/Fitch -/B/B+ -/B/B+ -/B/B+
Market Price* ($) 105.75 102.75 95.25
Market YTM* 6.23% 6.41% 6.93%
Spread over UST* 448 450 502
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 20, 2019
| Poultry

MHP — Conference call notes

LSE-listed MHP, Ukraine’s largest poultry producer, held a conference call to discuss its 3Q/9M19 results and outlook.
Nov 19, 2019
| Poultry

MHP — Reports mixed 3Q/9M19 financial results

LSE-listed MHP, Ukraine’s largest poultry producer, reported 3Q19 sales of $560m (+27% y-o-y), EBITDA of $109m (+10%), EBITDA before IFRS 16 effect of $85m (-14% y-o-y), and net profit of $104m (vs. $49m loss in 3Q18). The results yielded EBITDA and net margins of 19.4% and 18.6%, respectively (-3.0pp and +29.6pp y-o-y). Quarterly export sales totaled $317m or 57% of total revenue (vs. $275m or 62% of sales in 3Q18).
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