MILAN, Apr 3 (Class Editori) – Autogrill expands its presence in China. HMS Host announced the acquisition of two contracts. The first, lasting five years, is for the management of eight restaurants in Shanghai airport – the ninth busiest in the world; while the second, lasting four years, provides for the opening of six restaurants in Beijing Daxing airport.
Once fully operational, Beijing airport is expected to welcome 130 million passengers, and is due to become the biggest in the world. Sales' aggregate equivalent is predicted at around 50 million euro for the Shanghai contract an at 15 million euro for the Beijing one. And a good portion of these restaurants will be opened before the National Day of the People's Republic of China, falling on October 1st.
According to Mediobanca, which evaluated the title as "outperform" and attributed it with an objective price of 11.3 euro, "these are good news for Autogrill, as it gains two contracts in two interesting locations –due to bring, according to our predictions, 5 million in 2019 and 12.5 million in 2020. It should be noted that we calculate our estimates based on a 85% yearly retention rate for maturing contracts, plus an additional growth in new international contract of 5% for 2019 and of 2% for 2020 – this means that the new business has been built in already.
While the quantitative impact may not be very important, we can consider these new contracts as a confirmation of the company's focus on the Asian region – which is, we believe, an interesting opportunity”.
Banca Imi, for its part, evaluated it as "buy" and attributed it with an objective price of 10.4 euro, and noted: "The new contracts are not very big – just 15 million euro every year when fully operational – and they are quite short, but they contribute to strengthen Autogrill's presence in a high-rate growth area. These are good news, but they do not change our predictions".
(Source:Class Editori)
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
