Habitat 3Q14.indd

EARNINGS REPORT
October 24th, 2014
Recommendation
Habitat 3Q14
U.R.
Rela vely weak EBITDAE and earnings aﬀected by non-recurring
tax cost
3Q14 opera ng results below our es mates
RATIOS FORECAST
2013
2014E
2015E
EV/EBITDA
6.84
8.75
8.96
P/E
10.73
17.91
14.81
P/B
2.72
3.93
3.49
Dividend Yield
8.0%
5.2%
6.3%
Habitat reported 3Q14’s results showing a 2.5% YoY growth in EBITDAE at CLP
19.564M coming in below our es mates (CLP 21,425M) . EBITDAE excludes compulsory cash reserve returns (CLP 4,303M in 3Q13 vs. CLP 9,659M in 3Q14) and be er
reflects opera ng results. We see results as weak despite being fla sh, mainly due to
the decelera on as compared to previous quarter’s EBITDAE (CLP 22,427M in 1Q14
and CLP 21,425M in 2Q14). Higher revenues were oﬀset by increased opera ng costs
and SG&A’s.
PRICE VS IPSA
Pure EBITDA grew by 24.7% mainly due to much higher compulsory cash reserve
returns which reached CLP 9,659M in 3Q14.
1.30
1.20
IPSA
Habitat
1.10
1.00
0.90
0.80
Oct/14
Aug/14
Jun/14
Apr/14
Feb/14
Dec/13
Oct/13
0.70
Earnings showed a strong 35.7% decrease at CLP 12.708M on the back of the company recognizing new 27% rate on deferred taxes over tax costs (and not over equity
as Chilean Security Superintendence recently allowed). Adjus ng for the la er, earnings without cash reserve returns plummeted 80.3% at CLP 3.048 due to higher cash
reserve returns in the period.
In short, we believe results came in rela vely weak, showing a decelera on as compared to previous quarters, and aﬀected by the non-recurring tax cost due to Chilean
tax reform’s new rates. Due to the share’s recent rally and this non-recurring eﬀect
over earnings, our new 14E dividend yield is ~5.2% (from early 2014’s 8.3%) and
P/E levels seem high reaching 17.9x for 14E, and 14.8 for 15E in a more normalized
scenario.
CONTACT
Jason Barra
562 2 2520 - 7940
jbarra @bice.cl
Agus n Álvarez
562 2 2692 - 2576
[email protected]
@BICEinversiones
CLP M
3Q14
BICE EsƟmates
%Real/Est.
3Q13
%YoY
Revenues
35,346
34,623
2.1%
32,405
9.1%
EBITDAE
19,564
21,425
-8.7%
19,092
2.5%
-50.6%
19,774
EBITDA Mg.
55.3%
61.9%
Earnings
12,708
25,728
Net Margin
36.0%
58.9%
-35.7%
61.0%
EBITDAE: Opera ng Margin + Deprecia on and Amor za on - Compulsory Cash Reserve Returns
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SALES TEAM
RESEARCH TEAM
Felipe Figueroa E.
Agus n Álvarez M.
Equity Sales and Trading
ﬃ[email protected]
Head of Research
[email protected]
Jacinto Laso P.
Leonor Skewes L.
Research Vice President, Commodi es & Industrial
[email protected]
Equity Sales and Trading
[email protected]
José Manuel Baeza O.
Aldo Morales E.
Equity Sales and Trading
[email protected]
Retail & Consumer Staples
[email protected]
Daniel Sanhueza R.
Jason Barra V.
Equity Sales and Trading
[email protected]
Transporta on & Healthcare
jbarra @bice.cl
Tomás Ritchie M.
Pilar Montaner R.
U li es
[email protected]
Equity Sales and Trading
[email protected]
Sebas án Senzacqua B.
Andrés De la Cerda G.
Chief Economist
[email protected]
Fixed Income and Currency
[email protected]
Camilo Larraín D.
Senior Strategy Analyst
[email protected]
Francisca Bustamante C.
Strategy Analyst
[email protected]
Felipe Barragán H.
Economy and Fixed Income
Analyst
[email protected]
Contact
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@BICEInversiones
App BICE Inversiones
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