Brunswick Issues 'Buy' recommendation on Unified Energy Systems.MOSCOW--(BUSINESS WIRE)--Nov. 16, 1995--Brunswick Brokerage has published a buy report on Unified Energy Systems The Unified Energy System (MICEX:B>EESR RTS:B>EESR) (OAO RAO UES of Russia; Russian: ЕЭС России or Russian: , claiming that the $12 billion sales power generation company is "valued at 90-95% discount to international peers." Unified Energy Systems (UES UES UNE (University of New England) Economics Society UES Upper East Side (Manhattan, NY) UES Upper Esophageal Sphincter UES Unified Energy Systems of Russia UES Waukesha, Wisconsin ) controls the Russian High Voltage The term high voltage characterizes electrical circuits, in which the voltage used is the cause of particular safety concerns and insulation requirements. High voltage is used in electrical power distribution, in cathode ray tubes, to generate X-rays and particle beams, to Power Grid and holds 49% energy stakes in 70 regional power generation distribution utilities, known as "energos." In all, UES controls half of Russia's power generating capacity. The report argues that the upcoming restructuring of the Russian power industry will allow the grid and generation activities to achieve a higher return of capital. Following restructuring, Brunswick Brokerage believes the market will value UES "on a 'sum of the parts' basis. Each of the UES parts -- the grid, generation assets, and stakes in the 'basket of energos' -- will be traded separately and the market will put a value on each of them." Brunswick says that the market is currently valuing UES mainly as a basket of energos, although the grid and generation activities account for 45% of UES value. "On the most commonly used valuation measure -- market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. per kW of capacity -- UES, trading at $11/kW, is at 99% discount to the international average. On a P/E P/E See: Price/earnings ratio basis, its value represents a 90% discount." UES currently trades at $0.025 a share and has a market capitalization of $1.1 billion. Last year the company posted net profits of $872 million. "In addition, UES is one of the most liquid shares currently in the Russian market," the report says. Brunswick Brokerage is a division of Brunswick Ltd., the leading independent investment house serving institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. in the rapidly growing Russian equities market. Formed in January 1994 and based in Moscow, Brunswick Brokerage is a leading broker in the Russian market. Its staff of 50 actively trade positions in the 30 large companies that comprise the current tier of over-the-counter stocks over-the-counter stock A stock not listed on an exchange and trading only in the over-the-counter market. in Russia. CONTACT: Principal Communications Owen Blicksilver, 212/546-2240 |
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