Agriculture
May 27, 2015
MHP increased its EBITDA by 16% YoY to USD 123mn in 1Q15, driven mainly by lower SG&A and other operating costs, as gross profit grew by only 5%. MHP is working on construction of a breeding facility to fully cover its internal needs in hatching eggs, and management confirmed plans to expand the group’s Ukraine land bank to 500,000 ha in the next two to three years while unloading its Russian assets. Based on our projection of USD 520mn in EBITDA for FY15, we confirm our BUY recommendation for the MHPC stock while lowering our target price to USD 15.32.
