Analytical Report
Record revenues under margins pressure
In the current, very difficult period for the construction sector, we consider the results of the Unibep Group to be good. In the first half of 2022, the Group achieved revenues of PLN 1 billion (increase by 47% y/y), which translated into PLN 62.2 million EBITDA (increase by 84% y/y) and PLN 38 million net profit (increase by 138% y/y). However, there has been a decrease in margins, which is the result of many factors that the construction industry is struggling with, including increase in prices of materials, energy, costs of external services. We believe that in these conditions the Group is coping well both with the portfolio of contracts it has and winning new ones, with a significant slowdown in private investments. We believe that the current backlog, exceeding PLN 3.5 billion, will provide the Group with stable revenues. The majority of it consists of new contracts, which largely reduces the risk of their profitability. Unfortunately, in our opinion, there are no opportunities on the horizon in the near future that could make investors more optimistic about the construction sector. The receding prospect of KPO funds and the environment of high interest rates, which the Group felt the most severely by the decline in orders in the modular construction segment and the upward revision of the risk premium for our country, mean that, while remaining positive towards the Group, and at the same time conservative in valuation, we make a slight change in the assumptions, decrease the target price from PLN 11 to PLN 10 at the end of 2022.
Analysts
Artur Wizner Tel.: +48 (22) 53 95 548
This report was prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. This is a translation of the Polish analytical report.
