In the interview for HN daily, CEO of PMCR Anja Fiedlerova confirmed trend previously already mentioned about stabilizing market share of PMCR in the past months. In addition she sees possibility to improve margins via more effective processes inside the company, which will drive operating costs down. The main aim is not only to increase production volume but to watch for profitability as well.
CEO confirmed expectations of stabilizing market share at levels of over 60%. Note that in the 1H2006 PMCR’s marekt share stood at 62.8%. We forecast market share at the year of 2006 at 60.5%. On top of that we also project further cost improvements by 4.9% CAGR over the period of 2006-2008. On the back of this news we reiterate our Buy recommendation with fair value of CZK 12,134.