Result report 2009 - CorpBanca Inversiones

Results as of the fourth quarter 2009
Parauco
Target price: CLP 730
Recommendation: Buy
Risk: Low
Sector: Retail & Real Estate
Full year results reported a 15.9% increase in revenues, 21.3% in Ebitda and net
income almost tripled.
Positives
Analyst: Cristina Acle
At the operating level: better revenues; lower costs; important Ebitda increase;
and better margins.
Overview:
9 Good
Regular
Bad
Compared to our expectations:
9 Above
In line
Below
Compared to market consensus:
9 Above
In line
Below
Results FY 2009
CLP mn
Revenues
Ebitda
Ebitda margin
Net income
Net margin
EPS CLP
February 26, 2010
Parque Arauco reported very good results for the fourth quarter 2009, with a
15.5% increase in Ebitda and twice the net income. The Ebitda margin increased
almost seven percentage points. The operating figures were above our
expectations, with a reported Ebitda 18.9% better than expected. Net income
was in line with our expectations and net margin doubled.
2009
63,569
45,920
72.2%
29,253
46.0%
48.16
At the non-operating level: higher profits from related companies, which include
the operations in Argentina, Viña and Curico. The improvement coming from
Argentinean operations. Additionally, the losses due to price level restatement
that the company reported as of the 4Q08 diminished to almost 1/10 as of the
4Q09.
Negatives
Higher taxes.
Opinion
Parauco’s good results reaffirm the company’s positive perspectives and we
confirm our target price in CLP 730 per share and our Buy recommendation.
Additionally, we consider that the risk of the share is Low. In the future, the good
results would be higher when the new malls and the enlargements included in the
capital expenditures plan begin to operate.
Parauco Results for the fourth quarter 2009
2008 Dif %
54,850 15.9%
37,862 21.3%
69.0%
10,851 170%
19.8%
17.87 170%
CLP mn
Revenues
Costs
Operating result
Operating margin
Fourth
Actual
18,947
(7,756)
11,191
59.1%
quarter 2009
Estim. Dif %
16,042 18.1%
(6,330) 22.5%
9,713 15.2%
60.5%
4Q08 Dif %
18,056 4.9%
(8,098) -4.2%
9,958 12.4%
55.2%
Ebitda
Ebitda margin
14,184
74.9%
11,934 18.9%
74.4%
12,277 15.5%
68.0%
Non operating result
Result before taxes
Net income
Net margin
EPS CLP
(466)
10,725
7,787
41.1%
12.8
n.m.
(1,447)
8,266 29.8%
7,930 -1.8%
49.4%
13.1 -1.8%
(5,142)
4,816
3,740
20.7%
6.2
n.m.
123%
108%
108%
Source: Company reports and CorpResearch
“El propósito de este documento es sólo informativo y, por consiguiente, no puede entenderse, bajo ninguna circunstancia, que CorpResearch S.A. asuma responsabilidad alguna
en relación a cualquier tipo de operación que un inversionista realice o pretenda realizar respecto de los instrumentos o valores de que se tratan, o en los mercados o situaciones a
que se refiere.”
Glossary
Term
Definition / Translation
Calculation
EBITDA
Earnings Before Interests, Taxes, Depreciation and
Amortization
Operational Income plus Depreciation and
Amortization
EBITDAR
Earnings Before Interests, Taxes, Depreciation,
Amortization and Rents
EV
Enterprise Value
EV/EBITDA
Valuation multiple. While greater it is, more
expensive it is the stock
Operational Income plus Depreciation and
Amortization plus rent of fixed assets. It is used the
at transport industries to reverse the rent of
airplanes or ships.
Market capitalization plus Net Financial Debt plus
Minority Interest
EV divided by Ebitda
FCF
Free Cash Flow
Operational Income plus Depreciation and
Amortization minus tax minus capital expenditures
plus (minus) working capital variation.
Free-float
Percentage of stocks that can be freely traded in the
market
Percentage of stock that does not belong to
controller’s shareholders.
Margin
Operational
Ebitda
Net
Percentage of sales
P/E
Price / Earnings
Market Price divided by EPS
P/B
Price to Book value ratio
Market price divided by the accounting value of the
stock.
Dividend Yield
The return in terms of dividends of investing in
equities
Dividends distributed in a year divided by the
market price.
FCF yield
Free Cash Flow Return.
FCF / Market Price
ROA
Return on Assets
Net Income / Total Assets
ROE
Return on Equity
Net Income / Accounting capitalization
EPS
Earnings Per Share
Net Income / Shares outstanding
YtD
Year to Date
Percentage variation year to date
x
Times
Operational Income / Revenue
Ebitda / Revenue
Net Income / Revenue
Stocks recommendations: these are established according to the stock yield relative to the IPSA. We define a yield to be “In
line with the IPSA” when it is within a range whose scope is equivalent to a third of the variation expected for the index, with a
minimum of 5%. Once that is settled, we recommend Hold, when we expect the share to have a yield in line with the IPSA;
Buy, when the yield expected for the share is above to that expected for the IPSA; and Sell, when the yield expected for the
share is below to that expected for the IPSA.
2
“El propósito de este documento es sólo informativo y, por consiguiente, no puede entenderse, bajo ninguna circunstancia, que CorpResearch S.A. asuma responsabilidad alguna
en relación a cualquier tipo de operación que un inversionista realice o pretenda realizar respecto de los instrumentos o valores de que se tratan, o en los mercados o situaciones a
que se refiere.”
CorpResearch
Álvaro Donoso CorpResearch Director
adonoso@corpgroup.cl
Economic Research
Sebastián Cerda Economic Studies Director
scerda@corpgroup.cl
Juan José Donoso Economic Analyst
jdonoso@corpgroup.cl
Nicolas Birkner Economic Analyst
nicolas.birkner@corpgroup.cl
Equities Research
Cristina Acle Head of Equities Research. Sectors: Forestry and Transport
cristina.acle@corpgroup.cl
Matías Brodsky Analyst. Sector: Banks
matias.brodsky@corpgroup.cl
Juan Carlos Parra Analyst. Sector: Mining, Foods, IT and Telecom
juancarlos.parra@corpgroup.cl
Rosario Letelier Analyst. Sector: Energy and Construction
rosario.letelier@corpgroup.cl
Gutenberg Martínez Analyst. Sector: Retail
gutenberg.martinez@corpgroup.cl
Communications
Antonia de la Maza Communications Editor
antonia.delamaza@corpgroup.cl
Rosario Norte 660 Floor 17, Las Condes, Santiago, Chile. Telephone: (562) 660 2295
Bloomberg: CORG <GO>
3
“El propósito de este documento es sólo informativo y, por consiguiente, no puede entenderse, bajo ninguna circunstancia, que CorpResearch S.A. asuma responsabilidad alguna
en relación a cualquier tipo de operación que un inversionista realice o pretenda realizar respecto de los instrumentos o valores de que se tratan, o en los mercados o situaciones a
que se refiere.”