Initially they were in Uzbek sums and we converted into us dollars

Now, let’s jump into some calculations. Here we can see income statement indicators. During our research about the company, we found quite interesting things which we are about to tell you.
Initially they were in Uzbek sums and we converted into US dollars. As you can see, from 2019 base year, the company has constantly been growing by both gross profit and net profit.
I am going to give you 2 reasons for this.
First one is, the company’s objective is to maintain low-cost production and increase its profit. To achieve this goal, the company and the Government of Uzbekistan have created a portfolio of investment projects for 15 bln USD up to 2030. To remain the world’s top low-cost production the company is focusing on increasing operational efficiency, digitizing and automating the business processes and saving costs by using cheaper electricity. And these numbers indicate that they are doing pretty well.
Number 2. The company initially was a closed off company and did not trade globally. It only covered our neighboring countries. Since recent years, the company is focusing exports and in 2021, the company export portion of the company included Turkey, Bulgaria, Azerbaijan, Poland and even Netherlands.
Compound annual grow rate is 17%. By the end of 2026, we estimate that company’s revenue will reach to almost 6 bln dollars. As a reason we can give that in 3 years’ time the company is planning to launch a new greenfield project. In our base case scenario, it will represent 3.5 times more its current EBITDA.
We assess that the company has a very strong link and plays a very important role for Uzb. One more thing to point out that the company in 2020 has paid almost 2 trln UZS dividends and in 2021 it increased and reached to almost 5trln UZS.
If you look at the OROA here, you can see that the level of operating profits in relation to the assets are gradually increasing.
The company also has an impressive Return on equity. It is managing equity capital pretty well and because of the high profit margin, frequent turnover of inventory and uses its assets efficiently.