Nova Ljubjanska Banka
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It is the largest Slovenian bank.
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In 2013 taken over by the Slovenian Government, fully restructured and recapitalized
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IPO closed last week. Launched at 51.5 Euro per share, now trading at 56.6.
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Just spoke to Wood analyst (I can get you his contact details). He called the stock “Safety Heaven in current markets”. The reason is it is still very cheap.
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NLB now trades at 0.7 P/B. With RoE of 18% and Div Yield at 12% it should trade at least around 1.1 P/B. That is what Wood analyst thinks. The reason for this is simple – there is no research coverage, yet. The syndicate members (JP Morgan, Citigroup, Deutsche and Wood) are in blackout period (until 20/12) – they can issue research only after that date. There are three catalysts in pipeline which should help to rerate the stock:
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There is a CEE Equities conference early December organized by local broker Wood and Co in Prague. 150 CEE oriented investors are attending and NBL is one of the presented companies. Last year I saw 30% price increase on similar situations during the conference
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The research reports will be published on 20/12
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The prospectus and other documents can be found here: https://www.nlb.si/public-offering-of-shares-prospectus
Peers ratios for comparison
NLB Valuation based on Peers
| Per share data | |
| EUR | |
| NAV 30/6/18 | 89,85 |
| Dividend paid | 13,5 |
| Earnings 2H18 | 5 |
| NAV E2018 | 81,35 |
| Share price | 56,5 |
| Price to book | 0,69 |
| Net profit 2018E | 10 |
| Yield | 18% |
| payout ratio | 70% |
| Dividend yield | 12% |
| P/E 2018E | 5,7 |
| RoE 2018 | 14% |
| Target P/BV | Price per share |
| 0,9 | 73 |
| 1 | 81 |
| 1,1 | 90 |
| 1,2 | 98 |
| 1,3 | 106 |
| 1,4 | 114 |
| 1,5 | 122 |
Fit Investment Ideas 