Agriculture
March 07, 2013
MHP posted an outstanding set of FY12 financials, fueled mainly by a 15% YoY increase in its average poultry selling price. Revenue grew by 15% YoY to USD 1.41bn, with a rise in net profit by 20% YoY to USD 311mn. With annual CapEx needs in the medium term expected to be moderate, MHP’s board approved the company’s first-ever dividend: a USD 1.13 per share payout implying a generous dividend yield of some 6%. In light of expected EBITDA growth of 12% YoY in 2013 driven by projected output of around 75,000 tonnes of poultry at MHP’s brand-new Vinnytsia complex, we reiterate our BUY recommendation for the MHPC stock with a target price of USD 24.0.
