Russian Developer Samolet

According to Rosreestr, in June, 20.7% more primary contracts were drawn up on the market of new buildings in the capital than in 2022. At the same time, according to the results of the first six months of 2023, mortgages were issued in the Moscow region for 830 billion rubles, which is 41% more than in January-June 2022. Sentiment for developers is still positive, so the analysis of the operating results of the Samolet Group will be most useful.

So, the volume of sales of the primary real estate of Samolet for the 1st half of 2023 increased by 15% to 97.3 billion rubles. Despite the decline in demand at the beginning of the year, the company is increasing sales, bringing to the market more than 1 million square meters, which is 66% more than in the first half of 2022. Moreover, prices per square meter decreased by 2% to 164.6 thousand rubles, without preventing the company from showing a steady increase in sales efficiency.

Samolet’s revenue for the first half of the year increased by 15% to 101.8 billion rubles, reflecting the continued leadership in the sector. And yet it doesn’t look like there is a future effect of the integration with one of the largest developers, MIC Group. The only thesis is that this M&A deal is able to significantly increase the volume of business and take Samolet a leading position in the Moscow region.

The company’s EBITDA exceeded 25 billion rubles, while net profit slightly decreased to 12.5 billion rubles, but is still at a high level. The group is outperforming last year’s growth leaders in other industries, which have already begun to report a strong slowdown in growth rates.

In May 2023, Samolet announced the decision of the Board of Directors to buy back its own shares on the market in the amount of up to 10 billion rubles. until the end of the year. The buyback will be implemented by a group subsidiary and the acquired shares will be used for general corporate purposes. This should support the quotes, which we saw immediately after the publication of the news.

Last year Samolet showed good results. In 2023, the positive dynamics of revenue is still maintained, which hints to investors that the securities are attractive. In addition, the Group is developing its business units: Samolet Fundy – a long-term rental service, Samolet Dom – the first individual housing construction project, Samolet Strana – a development project in the regions, and others.


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