Agriculture
May 13, 2014
MHP is set to announce its FY13 dividend in the next few days, and we forecast a 40% net income payout of 61 cents per share, implying a dividend yield of 4.5%. Although this year’s sharp hryvnia devaluation will gobble up an estimated USD 43mn of the company’s FY14 EBITDA, we still predict solid FY14 EBITDA growth of 22% YoY to USD 479mn due to the limited impact of the devaluation on production cost in 9M14, along with higher poultry sales volume. MHP is on track to expanding its poultry export sales by 30% YoY in this year, and we reiterate our BUY recommendation for the MHPC stock while lowering our target price to USD 15.65 due to the devaluation effect.
