Unibep, LC Corp, Lokum, Robyg, Echo, Dom Development, Archicom and Atal as favorites of DM mBank

"The results of the construction sector (PAP) for the third quarter of 2017 were weak.The dynamics of EBITDA amounted to -34 percent yoy, and net profit -56 percent yoy (not including Budimex) .The weak construction figures are primarily responsible for railway construction companies (Trakcja , Torpol, ZUE) and electricity (Polimex, Mostostal Warszawa, Mostostal Zabrze, Elektrobudowa), where EBITDA fell by 48 percent in total, and net profit by 84 percent yoy "- it was written. According to analysts, the most interesting company in the sector Unibep remains our favorite in the sector. Despite significant problems in the road segment, the company has been showing a positive net profit dynamics (yoy) for the fifth consecutive quarter, currently the cheapest construction company with a P / E of 2018 equal to 7,7) "- it was written. Analysts invariably recommend buying Budimex and Elektrobudowa. In their opinion, these companies are characterized by the highest in the sector: cash position, dividend potential and provisions balance. According to analysts, most development companies reported results similar to expectations in the third quarter of 2017. "Exceptions were Robyg, Lokum and Dom Development, whose results surprised unexpectedly.The aggregate developer's margin on housing activity amounted to 28 percent and did not change yoy, "wrote. Analysts, due to rising costs and cases of construction delays, refrained from raising forecasts for years 2018-2019. "This does not change our view that the sector is priced very attractively, and the risk factors are exaggerated by the market," it wrote.

Source: company website, investor relations, current and periodic reports.

Company information
Company name:LC Corp SA
Adress: ul. Powstańców Śląskich 2-4 53-333 Wrocław
Phone:+48 71 7988010

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