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TransContainer (TRCN)

Business description

TransContainer owns and operates rail freight assets across Russia. Its assets comprise rail flatcars, handling terminals and trucks, through which it provides integrated end-to-end freight forwarding services to its customers.

Y/E Dec Revenue (RUBm) EBITDA (RUBm) PBT (RUBm) EPS (fd) (RUB) P/E (x) P/CF (x)
2015A 20311.0 804.0 3530.0 138.7 33.1 11.6
2016A 21988.0 1321.0 4302.0 202.4 22.7 8.5
2017E 26401.0 4806.0 7859.0 454.2 10.1 6.5
2018E 27970.0 4527.0 7903.0 456.7 10.1 5.9

Last updated on 21/02/2018

Investment summary

TransContainer announced operating statistics for Q417/FY17 on 18 January. TEUs in Q417 were the highest achieved to date, with all segments showing their highest Q4 results. We await financial results but Q317 results revealed continued growth in earnings, driven by increased container traffic (y-o-y and q-o-q) and falling empty run ratios. EBITDA margins increased to records levels of 50.3%. We expect margins to return to more normal levels but remain strong (c 40%) in the long term, aided by continued market growth. Our valuation is RUB5,100/share. We note an EGM has been called in February, during which the company seeks to elect new board members.

Last updated on 29/06/2018

Industry outlook

The Russian rail-freight market has good long-term fundamentals, as an increasing portion of goods are transported by rail containers at the expense of box cars. Current 'containerisation' levels of 5% are well below Europe and the US at 14% and 18%, respectively.

Last updated on 29/06/2018

Key management

Andrey Zhemchugov, Director for Capital Markets & IR
Alexander Shakhanov, Deputy Director for Capital Markets & IR

Company address

Oruzheyniy Pereulok 19
Moscow, Russian Federation
United Kingdom
+7 495 788 17 17
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