According to business daily Napi Gazdasag, BorsodChem targets to reach USD 1bn revenue by 2006. The Company sees its sales boosted by higher demand, which is expected to result in a 20% y/y improvement.
We see the news as neutral as the Company’s revenue guidance is in line with our expectations. However, we would also highlight that sales growth will be partially offset by higher COGS due to the high crude oil prices.
In a separate development, Bloomberg reported yesterday, that BorsodChem has pulled out its bid for Czech PVC maker Spolana. We see the news as neutral, as we considered PKN’s PVC subsidiary Anwil to be the most likely winner in the tender for Spolana. We reiterate our Hold rating on the stock and our fair value estimate of HUF 2,448 per share.