Risk to financial forecasts. Given the Company’s weaker yoy sales in recent months we expect the pressure on margins to continue, hence the downside risk to our forecasts cannot be precluded. The key question pertains to the scale of the electrotechnical market slowdown in the upcoming quarters and then new initiatives supporting the RES segment or modifications of the existing support programs.
■ Recommended action. High volatility of product prices and disruptions in demand and supply do not support the profitability stabilization. Hence, the visibility of Grodno’s financial results in the upcoming quarters will not be high and we maintain our neutral stance towards Grodno’s equities.
