MRV (MRVE3): The message that encouraged investors and made the stock stand out on the Ibovespa
The shares of MRV (MRVE3) rose in trading this Tuesday (7), since the opening of business, against the trend of Ibovespa.
At the beginning of the trading session, the roles of the construction company and developer advanced by more than 6%. However, around 1:55 pm (Brasília time), they rose 1.7%, close to R$ 6.60, being one of the only ones in the sector to have gains on the day.
Why is MRV going against the grain of the stock market and the industry?
The company held an event for investors this morning. In it, MRV’s prospects and horizons for the next three years were presented.
Among the estimates for this year, the highlight is the return on investment (NOR) of R$ 6.6 billion to R$ 7.2 billion, in addition to a gross margin of 22 to 24%. The company also has sales projection of 40 thousand units.
By 2025, the company estimates MRV&Co’s net income of BRL 1.3-1.6 billion, while projecting to reduce leverage to a range between 19.3% and 28.5%.
At the moment, cash generation and leverage are two points that concern the company and the market, reinforced the CEO of MRV&Co, Rafael Menin, after the company reported a deterioration in indicators in the fourth quarter of 2022 and at the end of the year .
“The market has been looking at the indicators with great concern, which were not very beautiful, because MRV has become more leveraged than we normally are”, says Menin, adding that the market is giving the benefit of the doubt to the company’s recovery.
For the analyst Empiricus ResearchCaio Nabuco de Araujo, the market received the projections well, as they seem to be above market estimates.
“The numbers involve a relatively quick recovery of margins and a considerable reduction in leverage”, he comments.
MRV wants to show that it built initiatives that will allow the company to be on a different level in a few years. One of these initiatives is the reduction of operations in geographic areas, in which the construction company and merger intends to maintain MRV’s operations in São Paulo and 15 metropolitan regions.
Expectations with “My House, My Life”
Menin points out that the government of Luiz Inácio Lula da Silva signaled that the renamed Minha Casa, Minha Vida housing program will be improved.
“It is a very nice program and we hope that the new government will be very attentive and make new adjustments, that it will gain additional gas”, said the MRV&Co executive, reinforcing that it is too early to implement the changes that must be made.
However, something new is expected to come, given “the absurd demand” of the program. “Any change will have an effect on the vein [da MRV]”, he added.
Asked whether, if MRV has track 1 in the program with a subsidy of up to R$ 150,000, it will work for this Minha Casa, Minha Vida audience, Rafael Menin says he has no interest.
“For the entire history of track 1 of the show, it’s not a segment we’re comfortable with. We prefer to operate in the free market segment. The program has its rules and we think that tracks 2 and 3 are much more in line with what MRV believes to operate in the market”, he pondered.
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
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