Autostrada_ infrastructure with a 5% dividend yield – an interview with management – autostrada torino-milano spa adr (otcmkts_adary) _ seeking alpha

The recent American elections raised the attention over the infrastructure theme. Tendering for building contracts It is well known that most developed economies have aging infrastructures, and developing countries need new infrastructures to sustain their growth. Delta e tendering services America’s public infrastructure spending is at a 20-year low, even with the American Society of Civil Engineers (ASCE) rating their infrastructure on average as poor.


Tendering for nhs contracts ASCE estimates America needs $3.6T in infrastructure investing between now and 2020 to reach an adequate standard of infrastructure. E tendering process However, this would require an additional $1.6T of funding than currently committed. E tendering services Therefore, private capitals are needed and I started to investigate the sector.

In a recent article, Alessandro Niglio argued that Autostrada Torino-Milano ( OTC:ADARY) trades at 30% discount. Tenderingssee dinslaken The company is listed in the U.S. Competitive tendering definition as well as in Italy (symbol: BIT:AT), providing more liquidity. What is competitive tendering in procurement In general, the company, as Alessandro mentions, trades at low multiples. Procurement and tendering for construction projects It currently trades at 9.65 times 2016 earnings, as well as 7.10 and 6.65 analysts’ expected earnings for the next two years. What is tendering process The company also offers a 5% dividend yield. What is tendering process in procurement However, as Alessandro writes, these attractive multiples can be explained by the fact that some of the concessions are expiring. Process of tendering in construction Alessandro points out two concessions: ATIVA and SATAP, but also SALT and ATP are expiring over the next few years. Competitive tendering in construction These concessions represent a large portion of the current profitability. E tendering jobs These concessions might be renewed, but there is no certainty.

To add further complexity in evaluating ASTM, the company recently bought a significant stake in ECORODOVIAS, a large Brazilian motorway operator. How to do e tendering Therefore, to value ASTM, quite a few assumptions are required. Online tendering system Alessandro intelligently proposes a few case scenarios. What is e tendering system Here, I try to shed some more light with an exclusive interview with the company. Tendering documents in court In bold my questions, in italics the answers.

Your business is going through profound changes: A few concessions are expiring and you recently made some acquisitions. Tendering council I believe that clarity would be highly beneficial to existing shareholders and the stock price.

We forecast revenues and profits for the entire life of our concessions but we do not disclose our figures. Tendering process in zimbabwe Please refer to Sias analysts’ forecast and consensus.

As mentioned above, analysts forecast €1.389B for 2016 (in line with 2015), €1.677B for 2017 and €1.729 for 2018. Government electronic tendering system EPS are expected to grow from €1.30 in 2015, to €1.03 in 2016, €1.40 and €1.49 in 2018 (source: 4-traders.com).

A major portion of your current concessions will expire in the next few years. Tendering and procurement in construction For example: Ativa (2016), TO-PI (2018), SE-LI (2019), SA-VE (2021). Selective tendering These concessions represent approximately half of your current revenues. Selective tendering process Could you please elaborate on how likely it is that these concessions will be renewed? Or if you have alternative concessions that will start to generate revenues to replace existing ones?

Zero in terms of revenues (we consolidate the Brazilian assets only on an equity method). What is tendering in procurement Zero from a dividend perspective because the Brazilian holding (trough which we co-control Ecorodovias and VEM) didn’t approve any dividend payment for 2016.

I am not sure I understand the legal structure. Procurement and tendering rics Now ASTM controls 64.1% of the company that manages Ecorodovias and VEM ABC? In practice ASTM owns 50% of the voting rights with Cr Almeida, how will decision be made?

ASTM directly controls 60% of IGLI and indirectly controls 40% of IGLI trough SIAS. E tendering system of maharashtra IGLI co-controls a Brazilian vehicle (Primav Infraestrutura) and it owns 64,1% of this last. Competitive tendering nhs In terms of governance the situation is a pure co-control on a 50%/50% basis with our co-shareholder.

Itinera is shifting from a model oriented to Italian and in house business to a model oriented to international market. Tendering documents Could you explain the rationale and the strategic plan?

It’s very easy, the Italian market doesn’t allow to have a constant growth because the pipeline is very poor. Tendering process in kenya The greatest infrastructural projects are abroad and al so the margins are higher. Online tendering websites CGC, U.S., Brazil, North and East Europe and some African countries are the areas of interest and current operations. E tendering websites Itinera will also collaborate with Sias on toll roads greenfield projects.

I personally think that this is a good strategy, especially considering the macroeconomic and political difficulties faced by the Italian government.

ASTM seems to trade at a discount, and it is attractively priced based on various multiples. Meaning of tendering process I personally find the governance structure confusing and the future revenue generation unclear. What is the meaning of tendering It is definitely a good company and I will continue to follow ASTM to have a better understanding of its prospects and it might soon enter our portfolio.

As always, thank you for reading. E tendering system ppt If you wish to follow our future articles, just click the ” Follow” button next to our name at the top. Tendring careline We would also be interested to know what you think about ASTM and investments in infrastructures. Selective tendering advantages and disadvantages If you would like us to cover a company, please let us know in the comments. Tendering uk Finally, if you want to know more about Integer Investments visit our website. Re tendering process Thank you for reading!

I wrote this article myself, and it expresses my own opinions. Government electronic tendering service I am not receiving compensation for it (other than from Seeking Alpha). How to register for e tendering I have no business relationship with any company whose stock is mentioned in this article.

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