Daily report 30-05-2013

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Manos Chatzidakis <mchatzidakis@beta.gr>	30 Μαΐου 2013 - 9:50 π.μ.
Market Comment Despite relatively low volumes market remained under selling pressure affected by the negative trend in major foreign exchanges and local investors liquidations ahead of the final stage of banks capital increase plans. We expect a volatile session driven from banking stocks performance in the absence of other domestic economic/corporate catalysts. We note that today NBG shares and pre-emption rights resume trading at €4.53 and €4.45 accordingly after the four day suspension due to reverse split (10:1).          In the Spotlight Greece - Cyprus/Deposits: Consumer and company withdrawal of deposits from Cypriot banks accelerated in April, where big account holders in the two largest lenders were forced to take a hit as part of an international bailout. Private-sector deposits fell by 7.3 percent to 41.322 billion euros after a nearly 4 percent fall in March, European Central Bank data showed on Wednesday. Greece recorded a 1.6 percent decrease in private sector deposits, falling to 170.0 billion euros, and Spain saw similar development with a 1.5 percent fall. Deposits in Italian and Portuguese banks fell less than 1 percent each. Monthly fluctuations in the figures are common, though sharp consecutive drops in countries with stable banking systems are unusual. Banking Sector: Bank credit to the private sector remained negative in April, showing only a slight improvement, the Bank of Greece said on Wednesday. The annual growth rate of total credit extended to the domestic private sector stood at -3.4 pct in April 2013, from -3.5 pct in the previous month. The net flow of total credit to the domestic private sector was negative, amounting to 1,626 million euros (April 2012: negative net flow of 1,997 million). The net flow of credit to enterprises, in April 2013, was negative, amounting to 1,190 million euros (April 2012:  negative net flow of 1,514 million), and the annual growth rate of credit was less negative at -3.4 pct compared with -3.6 pct in the previous month, the central bank said in the report.  In particular, the annual growth rate of credit to non-financial corporations was more negative at -3.0 pct, compared with -2.8 pct in the previous month, while the net flow of credit was negative and equal to 1,103 million euros (April 2012: negative net flow of 956 million). The annual growth rate of credit to insurance corporations and other financial intermediaries was less negative at -8.7 pct in April 2013, from -13.9 pct in March 2013. In April 2013, the net flow of credit to individuals and private non-profit institutions was negative, amounting to 431 million euros (April 2012: negative net flow of 399 million), and its annual growth rate stood at -3.7 pct, compared with -3.6 pct in March 2013. Greece – Estimates (Bank of Greece): The Greek economy will contract by a more-than-expected 4.6 per cent in 2013, with unemployment set to reach more than 28 per cent, the country's central bank said Wednesday. The Bank of Greece said the government's estimates of a contraction of 4.2 per cent of gross domestic product in 2013 are off. The conservative-led government has vowed to attract foreign investment and bring down unemployment, which currently stands at a record high of 27 per cent. Nearly 65 per cent of people under the age of 25 are unemployed. Piraeus Bank: Piraeus Bank announced yesterday that the Board of Directors resolved the following: ¡         Increase of the nominal value of each ordinary share from €0.30 to €3.00 and parallel reduction in the number of the Bank’s ordinary shares from 1,143,326,564 to 114,332,657 (reverse split with 10 old shares for every new share). ¡         Creation of special reserve of par. 4a in article 4 of c.l. 2190/1920, of €308,698,173.90 with reduction of Bank’s share capital by decreasing the nominal value of each ordinary share from €3.00 to €0.30 without changing the number of ordinary shares (114,332,657). ¡         The determination (a) of the subscription price at € 1.70 per new share after the reverse split (corresponding to a value € 0.170 prior to the implementation of the reverse split) and (b) the number of new shares to be issued under the capital increase to 4,958,235,292. Hence, after the capital increase the total number of new ordinary shares will be 5,072,567,949. ¡         Consequently, for every existing common share after the reverse split, the shareholder will obtain the right to subscribe for 35.680197 new shares at a subscription price of €1.70 per share. Jumbo (Results 9M 2013): Despite the loss from Cypriot deposit haircut Jumbo announced a resilient set of results. During the nine months of the current financial year the gross margin of the Group eased at 50,94% from 52,23% at the respective period of the previous year. The Euro / dollar exchange rate performed better than it was expected and Transportation costs rose less than initially anticipated. These two factors were in favour of the gross margin which eased by 1,29% while the management initial estimation for the year was four percentage points. The management estimates that for the current financial year the decrease of the gross margin will not exceed the one and a half percentage point. During the first nine months of the current financial year consolidated EBITDA reached 71,57 million EUR from 95,53 million EUR from the respected period last year implying a decrease of - 25,07% due to loss approximately of 19 million EUR concerning the impairment of the subsidiary’s company deposits at the Bank of Cyprus. On a comparable base, excluding the above extraordinary event the Group’s EBITDA for the nine months 2012/2013 would be at 90,83 million EUR decreased by -4,92%. Τhe profitability of the Group reached € 48 million decreased by approximately 29,1% y-o-y. On a comparable base, the Group’s profits for the nine months 2012/2013 would be approximately 65,59 million EUR decreased by only -3,42% y-o-y. Cash position in 31.03 was standing at €189.8m (net €39.8). Jumbo Results 9M 2012 In thous. euro 2011 2012 Δ Sales 380,309  381,853  0.4%  Q3 87,251  86,464  -0.9%  EBITDA 95,526  71,754  -24.9%  (% Sales) 25.12%  18.79%  -633 bps  Q3 17,266  -3,435  -119.9%  (% Sales) 19.79%  -3.97%  -2,376 bps  Net Income 67,908  48,151  -29.1%  (% Sales) 17.86%  12.61%  -525 bps  Q3 10,172  -8,298  -181.6%  (% Sales) 11.66%  -9.60%  -2,126 bps  Intralot: LotRich a consortium including Intralot Group, has won an international tender to become technological supplier of ChinaTrust Commercial Bank of Taiwan, the operator of lottery games in the country. Intralot is a technological supplier of ChinaTrust Commercial Bank in Taiwan since 2007, when CTCB acquired the first lottery license in the country. The new project will have a duration of 10 years. Under the contract, Intralot will supply its LOTOS O/S central system, the LOTOS Horizon management system, along with 6,050 Photon terminals around the country. FFGroup (3M 2013 Results): Folli Follie Group is set to release its 1Q 2013 financial results today, post market close. Consensus calls for revenues of EUR 246m (+7% y-o-y), EBITDA of EUR 53.8m (+9.5% y-o-y) and net profits of EUR 25.0m (+13% y-o-y). The company will host a conference call at 18:00 Athens time. PPC: PPC is scheduled to report its 1Q:13 financial results today after the close of the market, while management holds a conference call tomorrow at 15:00 GR time. Market consensus expect sales of EUR 1,500m, EBITDA of EUR 272m and net income of EUR 32.3m against net loss of EUR 1.4m in 1Q:12. HELPE: Hellenic Petroleum is scheduled to report its 1Q:13 results today, after the close of the market, while a conference call with management will be held today at 18:00 GR time. The consensus calls for “clean” EBITDA of EUR 68m and “clean” net loss of EUR 10.5m. Other Q1 results : Sidenor Results Q1 2013 In thous. Euro 2012 2013 Δ Sales 272.366  184.276  -32,3%  EBITDA 5.439  -2.885  -153,0%  (% of sales) 2,00%  -1,57%  -356 bps  Net Income -17.650  -26.910  -52,5%  (% of sales) -6,48%  -14,60%  -812 bps  Lamda Development Results Q1 2013 In thous. Euro 2012 2013 Δ Sales 272.366  184.276  -32,3%  EBITDA 5.439  -2.885  -153,0%  (% of sales) 2,00%  -1,57%  -356 bps  Net Income -17.650  -26.910  -52,5%  (% of sales) -6,48%  -14,60%  -812 bps  Hercules Results Q1 2013 In thous. Euro 2012 2013 Δ Sales 43.897  50.351  14,7%  EBITDA -16.598  -101.362  -510,7%  (% of sales) -37,81%  -201,31%  -16.350 bps  Net Income -23.281  -86.161  -270,1%  (% of sales) -53,04%  -171,12%  -11.809 bps  AS Company Results Q1 2013 In thous. Euro 2012 2013 Δ Sales 5.359  3.758  -29,9%  EBITDA 825  221  -73,2%  (% of sales) 15,39%  5,88%  -951 bps  Net Income 615  112  -81,8%  (% of sales) 11,48%  2,98%  -850 bps