The financial results of 2023, the strategy and the prospects of the AVAX Group were presented by the management to representatives of stock companies and institutional investors.
According to the management of AVAX Group, constructions, participation in projects and new investments are the activities that make up the pillars of the company’s growth. The high backlog of projects, the continuous improvement of net profitability, the ratio of 54-46 between private and public projects, and the high expertise and experience of AVAX in very demanding projects, are the main factors of the AVAX Group’s performance.
Analysts and institutional investors were presented with the updated forecasts of EDISON and Optima Bank, with an estimated share price of 3.00 euros and 2.79 euro respectively, and an upside of +90% and +76% from current levels.
Construction
In the sector of construction, EBITDA amounted to 26.7 million euros with an enhanced profit margin of 6.2% in 2023 (compared to 17.6 million euros and a profit margin of 4.7% in 2022). At the same time, the acquisition of new projects is also on an upward trajectory with the outstanding balance of signed contracts exceeding 3 billion euros. The management expects a significant increase in the sector’s activities, with new projects incorporating expanded profit margins.
Participation in projects
The Group maintains a strong portfolio from which returns are expected. More specifically:
-Participations in Concessions (Olympia Road, Aegean Highway, Moreas, Flyover), PPP (Waste Management of Ilia Prefecture, Athens Bus Stations, Agios Nikolaos PPA Station, Salonica Car Park) and Marinas (Athens, Limassol) are valued at 465 million euros, taking into account the remaining time of each contract.
-Despite the expiry of Attica Road (October 2024) the expected dividends (nominal) amount to approximately 1.1 billion euros, maintaining the long-term value of the Group’s holdings portfolio.
Also, AVAX proceeds with the transfer of holdings to the 100% subsidiary “AVAX Concessions” together with the connected bank loan in order to make the structure and value of the Group’s concessions & PPP portfolio clearer.
New investments
In the pillar of new investments, the Group moves on multiple fronts:
-pre-selection in tenders of 25 PPP projects, with a total budget approximately 3.5-4.0 billion euros
-submission of a standard proposal for extensions of Attica Road, in the form of a concession
-greater flexibility in financing new investments from AVAX with a target equity IRR rate between 9%-14%
-continuation of the growth path of the 100% subsidiary Ixion Energy with a target equity IRR of 10%-15% through:
-new RES and energy storage projects
-public network of electric car charging stations plug operation
-energy saving projects (photovoltaics on building roofs)
-energy management (trading)
-in the real estate sector it focuses on residential developments with high IRR targets.
