Daily Colombian Equities Bulletin and Fundamentals 7-25-14
July 28, 2014 (www.investorideas.com newswire) The Colcap index closed the week at 1,700 points (0.43%). Total turnover reached USD119.24 mm. The best performers were EEB (+2.80%), Enka (+1.69%) and PfGrupoSura (+1.53%). On the other hand, the worst performers were Tablemac(-3.90%), BVC (-2.83%) and ETB (-1.60%).
GrupoSura | 2Q14 Results
2Q14's operating revenues increased 285.1%YoY to COP 310.03 bn. The results were positively impacted by a good performance of the Group's subsidiaries.
Grupo SURA's subsidiaries provided COP 228.01 bn via the equity method (Vs COP -5.3 bn in 2Q13), mainly by SURA Asset Management which added COP 126.6 bn (-5.8 bn in 2Q13), and Suramericana (Insurance Company) which added COP 94.1 bn +288.1% YoY. The good figures were a result of a much better operating performance, as well as a recovery on the financial markets.
Dividends from the company's investments stood at COP 81.95 bn, showing a 4.5% YoY drop.
2Q14's operating expenses reached COP 13.1 bn, +46.7 YoY, as a result of: i) the Group's new organizational structure geared to its new corporate role as defined last year ii) higher administrative expenses and fees incurred with the recent issuance of local bonds.
Net income during 2Q14 reached COP 268 bn +331.7% YoY. Net margin for the quarter was 88.6%, 940 bps higher than that in 2Q13.
Overall, we consider 2Q14 financial results as positive. Revenues were bolstered by the recovery on the financial markets. It's also worth to mention the positive performance of the Group's subsidiaries different businesses.
The company registered an EBITDA of COP 1,678 million in 2Q14, a significant improvement compared to 2Q13, which was -COP 5,471 million despite an adverse scenario in terms of demand, higher low cost imports and the impact of COP revaluation on exports. Source: Superfinanciera
In June, the subsidiary companies of Avianca Holdings S.A. transported 2,120,689 passengers, up 4.9% compared to June 2013. Capacity, measured in ASKs (available seat kilometers), increased by 4.2%, while passenger traffic, measured in RPKs (revenue passenger kilometers), increased 3.1%. The load factor for the month was 79.9%.Source: Avianca Holdings S.A.
'El Niņo' Phenomenon
Colombia started a plan to face the consequences caused during the initial phase of the 'El Niņo' weather phenomenon. President Juan Manuel Santos said this is just the beginning, that means the phenomenon could last from October 2014 to March or April next year. The World Meteorological Organization (WMO) sees a chance of 75 to 80 percent that 'El Niņo' full conditions are established between October and December. Source: Terra
'El Niņo' has been one of the reasons why analysts have raised their inflation expectations for the end of this year to 3.27%, higher than the target of the Central Bank of 3%. In Corredores Asociados we expect CPI ending the year at 3.36%, which is a significant rise from current levels (2.79%).
Corredores Asociados S.A. Comisionista de Bolsa is not responsible for investment decisions that may be derived from the information and analyses presented in this document. These decisions, their effects and consequences will be the sole responsibility of the investor. The information published is informative and has been taken from reliable sources, but Corredores Asociados S.A. does not guarantee that they are free of errors. Total or partial reproduction of this document is not allowed without the prior and express authorization of Corredores Asociados S.A.
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Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.