Growth of capitalization of public and private companies in Russia. Ria rating Record holders of growth among altcoins
The iPhone maker, the world's most valuable company, increased its value by 48% in 2017 to reach a capitalization of €713.8 billion. Alphabet rose by 30% to €604.7 billion, and the Bill Gates-founded giant surged in the stock market. by 40% and exceeded €547 billion. Thus, the capitalization of the most expensive trinity of companies is €1.8 trillion, which is comparable to Italy's GDP. The basis of the formula for success of the new generation of entrepreneurs, the elite of the world market, is a clear double common denominator: they are technologically advanced and have an American passport, or rather, they all come from Silicon Valley, a paradise for startups. This is confirmed by the following fourth and fifth places in the ranking of the most valuable companies, occupied by Amazon with a capitalization of €467.3 billion and Facebook worth €427,019 billion.
For the first time, five Internet giants have won the world ranking. Even sixth place belongs to the dot-com company, albeit of Chinese origin, Tencent, valued at €409 billion. In general, China is a booming country in the stock market: Alibaba, which debuted on Wall Street only four years ago, is already worth €366 .2 billion and is in the eighth position of the list.
Expanding the time horizon and analyzing a similar rating from a decade ago, the “occupation” of the stock market by technology giants seems more obvious. Microsoft is the only dot-com that was among the leaders in 2007 and was also in third position. The oil sector was king then: ExxonMobil, General Electric, PetroChina and Royal Dutch Shell, together with Microsoft, formed a large-cap quintet. Then you had to go down to position 70 to find Apple, which launched its first iPhone, with a capitalization of €174 billion. Google, with €219 billion, was twenty-ninth. Amazon and Facebook have since shown even better value escalation: in 2007, there were 366 more valuable companies than Bezos, and the social network Zuckerberg wasn't even valued because it came into being 5 years later.
In 2017, black gold still has power in the rankings, but outside the Top 10: the first oil company is ExxonMobil, but today it is in eleventh position with a value of €293.9 billion. In seventeenth place is Royal Dutch Shell with €233.8 billion, ahead of Chevron with €197.2 billion in position 21.
There are no signs of change in the outlook for 2018, and Silicon Valley is projected to grow further. This year, the stock market is expected to record a trillion-dollar value for the first time in history, although there are divergent predictions as to who will hit that milestone. Apple , but Amazon, whose shares rose 55% in 2017, and China's Alibaba are also the targets of analysts' bets.
To assess the changes that have taken place among Russian issuers and on the Russian stock market as a whole, the experts of the RIA Rating agency prepared the next annual, fifth in a row, Rating of the 100 most expensive public companies in Russia as of the beginning of 2018.
The main ruble index (Moscow Exchange) fell by 5.5% over the year, while the dollar index (RTS) grew by only 0.2%. Nevertheless, despite the decline in the index, among the largest companies by capitalization, the majority showed an increase in quotations in 2017. According to the rating, the total capitalization of the TOP-100 Russian companies over the past year increased by 1.3% or $8.4 billion to $643 billion as of December 29, 2017. For comparison, in 2016 the growth was much higher - +58% or +233 billion dollars. The median capitalization of the Russian 100 public companies did not change and amounted to $1.8-1.9 billion. In turn, the minimum amount of capitalization with which one could get into the top 100 most expensive companies in 2017 was $318 million, against $267 million in last year's rating and 157 as of December 31, 2015. (Thus, the lower bar for entering the top 100 most valuable companies in Russia has doubled in two years.
The top ten, according to the rating, also includes the following companies: Sberbank, Gazprom, Rosneft, LUKOIL, NOVATEK, Norilsk Nickel, Gazprom Neft, Tatneft, Surgutneftegaz and NLMK. It is worth noting that two companies at once left the TOP-10 at the end of the year, and, accordingly, two newcomers are in the top ten. Magnit and VTB Bank left the top ten largest companies in Russia by capitalization.
Among the 100 most valuable companies, the market capitalization of 55 companies increased in 2017, which is significantly less than last year's result (91 companies). Ingrad development company became the leader in terms of market capitalization growth among the TOP-100 companies in 2017. The capitalization of this company during the year increased by more than 8 times. The second company in terms of growth rates was Lenenergo, whose capitalization increased by 4.7 times, which is also mainly due to the additional issue. In general, in 5 companies, capitalization growth in 2017 was multiple, which in most cases was due to additional issues. For comparison, in 2016, 25 companies showed a multiple increase in capitalization, which was most often determined by the dynamics of shares.
The largest decrease in capitalization in 2017 among the companies included in the rating was demonstrated by the financial sector company FG "Future". AFK Sistema, Magnit, Bashneft, VTB Bank, Nizhnekamskneftekhim, Lenta, Chelyabinsk Zinc Plant, Rusagro, Uralkali and Polyus were also among the companies with a significant decrease in market capitalization.
RIA Rating is a universal rating agency of the media group MIA "Russia Today" specializing in assessing the socio-economic situation of the regions of the Russian Federation, the economic condition of companies, banks, economic sectors, countries. The main activities of the agency are: creation of ratings for the regions of the Russian Federation, banks, enterprises, municipalities, insurance companies, securities, and other economic entities; comprehensive economic research in the financial, corporate and public sectors.
MIA "Russia Today" - an international media group whose mission is prompt, balanced and objective coverage of events in the world, informing the audience about different views on key events. RIA Rating as part of the Rossiya Segodnya MIA is included in the line of the agency's information resources, which also include: RIA News , R-Sport , RIA Real Estate , Prime , InoSMI. MIA Rossiya Segodnya is the leader in terms of citation among the Russian media and is increasing the citation of its brands abroad. The agency also occupies a leading position in terms of citation in Russian social networks and the blogosphere.
In February 2017, the RIA Rating agency released another rating of the hundred most expensive Russian companies. Their total capitalization in 2016 amounted to $635 billion, which is 58% ($233 billion) higher than in 2015. At the same time, the value of all Russian companies in the top 100 corresponds to the capitalization of Apple alone ($630 billion). However, the potential of many companies is not fully disclosed and their shares on the market may still soar in price.
Top 10 most valuable public companies in Russia in 2017
10. VTB Bank
Capitalization - 15 827 million dollars.
The main shareholders of this bank are state structures - the Federal Property Management Agency and the Ministry of Finance of the Russian Federation. They own 60.9% of voting shares. In terms of authorized capital, VTB Bank ranks first among the country's credit institutions, and second in terms of assets. In 2016, VTB Bank and Russian Post entered into an agreement to establish Post Bank. Dmitry Rudenko became its head, who intends to increase the bank's loan portfolio to 4 billion rubles by 2023.
9. Gazprom Neft
Capitalization - 16 888 million dollars.
The company was founded in 1995 by order of B. Yeltsin and was then called the Siberian Oil Company. In 2005, its controlling stake was bought out by Gazprom. Gazprom Neft was the first company to start producing oil on the Russian Arctic shelf. By 2020, the company plans to increase the total oil production to 100 million tons of oil equivalent per year.
8. Magnet
Capitalization - 17,005 million dollars.
Almost all Russian cities are covered by a "magnetic" network. The total number of Magnit stores as of July 2016 reached 12.9 thousand. The first of the "Magnets" was opened in 1998 in Krasnodar and initially household chemicals were sold there. And the development of the hypermarket chain began in 2006. In 2007, the first of them was also opened in Krasnodar. Apparently, this is a happy city for the owners of Magnit.
7. Surgutneftegaz
Capitalization - 18 217 million dollars.
The largest enterprise in the city of Surgut and one of the largest players in the Russian oil market. For the whole of 2016, Surgutneftegaz produced 61 million 848.6 thousand tons of oil and produced 9 billion 663 million cubic meters of gas. And the NPF under the brand of the same name has become one of the most profitable in.
6. MMC Norilsk Nickel
Capitalization - 26 201 million dollars.
A Russian mining and metallurgical giant that produces 100% platinum in the Russian market, 96% nickel, 95% cobalt and 55% copper. The MMC accounts for 1.9% of Russia's GDP. Vladimir Potanin, who holds the position of General Director of Norilsk Nickel, at a meeting with Vladimir Putin said that by 2023 he intends to invest about 1 trillion rubles in the development of production. This will allow the enterprise to rejuvenate its capacities and make them the largest in the world.
5. NOVATEK
Capitalization - 39 220 million dollars.
It ranks second in Russia in terms of gas production. Together with such companies as Rosneft, Gazprombank and Vnesheconombank, it is included in the US sanctions list. This means that NOVATEK cannot borrow on the US market for more than three months.
4. LUKOIL
Capitalization - 48,076 million dollars.
Until 2007, LUKOIL was the leader in terms of oil production in Russia, but then lost this title to Rosneft. In 2017, the company produced its first millionth ton of oil in the Caspian Sea, at the Yu. V. Filanovsky. And in 2016, LUKOIL ranked fourth in the annual environmental performance rating of Russian oil and gas companies according to the World Fund wildlife and 2nd place in .
3. Gazprom
Capitalization - 59 932 million dollars.
The corporation whose dreams come true takes the third place in the list of the most expensive companies in the Russian Federation in 2017. Her interests include not only exploration and production of gas, but also its transportation, storage and sale. Since December 2013, Gazprom has retained the right to export pipeline gas; until that time, the corporation had the right to export from Russian Federation any gas.
2. Sberbank
Capitalization - 61 159 million dollars.
According to the Central Bank, Sberbank -. There is no need to worry about the deposits placed there, the Central Bank is unlikely to revoke the license from Sberbank in the foreseeable future. And in terms of accessibility, Sberbank occupies the highest step on the banking pedestal - it has almost 17.5 thousand branches and 14 territorial banks in 83 regions of Russia.
1. NK "Rosneft"
Capitalization - 69 907 million dollars.
The controlling stake in Rosneft is owned by Rosneftegaz, and Igor Sechin is the executive director of the corporation. In 2016, the Glencore consortium and the Qatar Investment Authority fund in Qatar acquired a 19.5% stake in Rosneft for 10.2 billion euros. However, Rosneft still has 50% + 1 share. Last year, Rosneft was mentioned in the press in connection with the high-profile arrest of the head of the Ministry of Economic Development, Alexei Ulyukaev. He is suspected of threatening and extorting a bribe in the amount of two million dollars from a Rosneft representative. Ulyukaev estimated this amount as a positive assessment, which allows Rosneft to acquire the state-owned stake in Bashneft.
"I cited figures by which one could see that in Russia, mainly state-owned companies, their subsidiaries, as well as numerous budget institutions, which together control 70% of the Russian economy. They are mainly a source of replenishment of the budget of the Russian Federation. Individuals in the Russian Federation form approximately 10% of the budget, while in the US this share is approximately 64%.
Below we will see how the capitalization of the most expensive Russian companies has changed in recent years:
| Company | Share controlled by the state, % | Owners | Change in capitalization in $ per, % | Change in capitalization in $ from 2014 to 2017 , % | Capitalization at the end of 2017, $ million | ||
|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | |||||
| Sberbank | 50% + 1 share | *Central Bank of the Russian Federation - 50% + 1 share; * other shareholders are more than 8273 legal entities and individuals ( individuals- 2.84%, foreign investors - more than 45%) | 37,9 | 104,1 | 44,9 | 307,83 | 84 311 |
| Gazprom | over 50% | * Federal Property Management Agency - 38.37%; * OJSC Rosneftegaz* -10.97%; * OJSC Rosgazifikatsiya* -0.89%; *ADR holders - 25.20%; *other registered persons -24.57% | -11 | 35,4 | -20 | -3,60 | 53 349 |
| Rosneft | 50% | *JSC Rosneftegaz - 50%, *British BP - 19.75%, *Swiss-Qatari consortium QHG Oil Ventures - 19.5% | -23,7 | 87,7 | 1,2 | 44,93 | 53 304 |
| Lukoil | h | 1,9 | 75,1 | -18,1 | 46,13 | 48 933 | |
| NOVATEK | h | -9,4 | 58,1 | 5,4 | 50,97 | 35 543 | |
| Norilsk Nickel | h | 12,6 | 31,5 | -13,2 | 28,52 | 29 511 | |
| Gazprom Neft | 95.68% Gazprom | *Gazprom - 95.68%; *in free float - 4.32% | 19,4 | 68,9 | -15,8 | 69,80 | 20 165 |
| Tatneft | h* | 18,8 | 58,4 | 6,2 | 99,85 | 17 959 | |
| Surgutneftegaz | h | -5,6 | 8,8 | 10,7 | 13,70 | 17 191 | |
| NLMK | h | 35,8 | 119 | -25,5 | 121,56 | 15 349 | |
| Severstal | h | 1,2 | 82,5 | -5,1 | 75,27 | 12 985 | |
| Yandex | h | 64,7 | 48,7 | -9,5 | 121,64 | 10 669 | |
| RUSAL | h | 62,7 | 41,2 | -54,4 | 4,76 | 10 569 | |
| VTB Bank | 60,90% | * Federal Property Management Agency - 60.9%; *The rest of the shares are distributed among GDR holders and minority shareholders - individuals and legal entities. | -33,1 | 12,4 | -7,4 | -30,37 | 10 595 |
| Pole | h | -25 | 84,5 | 123,9 | 209,82 | 10 482 | |
| Magnet | h | -38,9 | 17,8 | -12,8 | -37,24 | 10 382 | |
| X5 Retail Group | h | 16,4 | 71,2 | 51,6 | 202,10 | 10 256 | |
| ALROSA | 33% | *in free circulation - 34%; * RF - 33%. | -18,3 | 106,7 | -30,3 | 17,71 | 9 584 |
| MTS | h | 13,1 | 41,7 | -5,2 | 51,93 | 9 578 | |
| MMK | h | 34,7 | 115,2 | 35,8 | 293,65 | 8 210 | |
| En+ Group | h | - | 7 771 | ||||
| VEON | h | -1,2 | 17,4 | -21,5 | -8,95 | 6 685 | |
| Mail.ru Group | h | 57,5 | -13,9 | 37,7 | 86,73 | 6 360 | |
| Inter RAO | *PJSC FGC UES - 9.24%; * JSC Inter RAO Capital (quasi-treasury shares) - 29.39%; | *Rosneftegaz Group - 27.63%; *PJSC FGC UES - 9.24%; * JSC Inter RAO Capital (quasi-treasury shares) - 29.39%; *in free circulation - 33.74%. | -7 | 317,8 | n.a. | 6 079 | |
| Uralkali | h | -25,4 | 11,4 | 5,7 | -12,16 | 5 966 | |
| Bashneft | Rosneft | The main shareholder is Rosneft | -33,8 | 117,2 | 24,1 | 78,44 | 5 793 |
| PhosAgro | h | 0,5 | 10,1 | 31,6 | 45,62 | 5 555 | |
| Megaphone | h | -6,9 | -18,7 | -21,5 | -40,58 | 5 503 | |
| EVRAZ | h | 41,4 | 152,8 | -54,8 | 61,57 | 5 470 | |
| RusHydro | 60.6%, VTB Bank (13.3%) | *Rosimushchestvo - 60.6%; *VTB Bank - 13.3%; *LLC "Aviatrans" - 6% | -8,5 | 66 | -2 | 48,85 | 5 373 |
| Polymetal | h | 17,1 | 25,4 | -3,8 | 41,26 | 5 298 | |
| UAC | 90,30% | *Rosimushchestvo - 90.3%; *Vnesheconombank - 5.6%; *private shareholders - 4.1% | 42,6 | 128,1 | 324 | 1279,15 | 4 899 |
| Moscow Exchange | Central Bank of the Russian Federation (11.779%), Sberbank (10.002%), Vnesheconombank (8.404%), RDIF Investment Management-6 (5.003%) | *Central Bank of the Russian Federation - 11.779%; *Sberbank - 10.002%; *Vnesheconombank - 8.404%; *EBRD - 6.069%; * RDIF Investment Management-6 - 5.003%; * in free circulation - 57% | -7,6 | 61,1 | 17,8 | 75,35 | 4 315 |
| PIK Group | h | 13,2 | 62,7 | -10,2 | 65,39 | 3 654 | |
| FGC UES | 80.13% Rosseti | *PJSC Rosseti - 80.13%; *Rosimuschestvo-0.59%; *minority shareholders -19.28% | -15,4 | 313,4 | 3 | 260,23 | 3 591 |
| Tinkoff Bank | h | 78,7 | 245,9 | -4,4 | 490,93 | 3 443 | |
| VSMPO-Avisma Corporation | h | 29,5 | 33,7 | 14 | 97,38 | 3 375 | |
| NK "Russneft" | h | 15 | - | 3 118 | |||
| Rostelecom | Previously: 48.71%, Vnesheconombank (4.29%) | *Rosimushchestvo - 45.04%; *Vnesheconombank - 3.96%; *Mobitel LLC (subsidiary of Rostelecom) - 12.01% | -20,2 | 10,4 | -20,6 | -30,05 | 2 840 |
| "Rosseti" | 88,89% | * Federal Property Management Agency - 88.89% | -23,1 | 261,7 | -15,8 | 134,20 | 2 839 |
| RIBBON | h | -29 | 21,5 | 12,9 | -2,61 | 2 835 | |
| Unipro | h | -6,8 | - | 9,5 | 2 795 | ||
| Akron Group | h | 14,7 | 14,3 | 56,4 | 105,04 | 2 733 | |
| "Aeroflot - Russian Airlines" | 61,17% | *Rosimushchestvo - 61.17%; *legal entities(including from the subsidiary OOO Aeroflot-Finance - 5.13158%) - 34.04%; *individuals - 4.79%; *in free float (ticker AFLT on the Moscow Exchange) - part of the shares. | -4,3 | 227,6 | 36,1 | 326,69 | 2 681 |
| Novorossiysk Commercial Sea Port | Previously: 50.1% stake - Novoport Holding Ltd. (JV Transneft and Summa Group), 20% owned by the Federal Property Management Agency | *PJSC Transneft - 62%; *Rosimushchestvo-20%; * structures of Russian Railways - 5%; *free circulation on the Moscow and London stock exchanges-13% | 26,7 | 112 | 155,3 | 585,75 | 2 642 |
| state | -6,17 | 134,67 | 29,31 | 207,18 | 255 819 | ||
| private | 13,62 | 54,47 | 5,24 | 85,09 | 310 407 | ||
| public-private | 0,27 | 93,27 | 47,60 | 226,27 | 16 541 | ||
*h-private company
I included ALROSA, the Moscow Exchange, the Novorossiysk Commercial Sea Port as public-private companies.
As can be seen from the table, from 2014 to 2017 capitalization state companies in $ increased by an average of 207.18%, and private by 85.09%.
1. KLA - 1279.15%
2. Novorossiysk Commercial Seaport - 585.75%
3. Tinkoff Bank - 490.93%
4. "Aeroflot - Russian Airlines" - 326.69%
5. Sberbank - 307.83%
6. MMK - 293.65%
7. FGC UES - 260.23%
8. Pole - 209.82%
9. X5 Retail Group - 202.10%
10. Rosseti - 134.20%
11. Yandex - 121.64%
12. NLMK - 121.56%
13. Akron Group - 105.04%
14. Tatneft - 99.85%
15. VSMPO-Avisma Corporation - 97.38%
16. Mail.ru Group - 86.73%
17. Bashneft - 78.44%
18. Moscow Exchange - 75.35%
19. Severstal - 75.27%
20. Gazprom Neft - 69.80%
21. PIK Group - 65.39%
22. EVRAZ - 61.57%
23. MTS - 51.93%
24. NOVATEK - 50.97%
25. RusHydro - 48.85%
26. Lukoil - 46.13%
27. PhosAgro - 45.62%
28. Rosneft - 44.93%
29. Polymetal 41.26%
30. Norilsk Nickel - 28.52%
31. ALROSA - 17.71%
32. Surgutneftegaz - 13.70%
33. RUSAL - 4.76%
UAC became the fastest growing company. Apparently, this was facilitated by the introduction of advanced industrial production technologies. For example, in the United aircraft corporation(UAC) implemented the concept of a virtual design bureau, when engineers from several design bureaus and production sites work on designing an aircraft model in a single digital environment.
Apple shares are up 70% since the start of 2019. This is the most significant percentage increase among similar companies. Capitalization has grown strongly, despite the decline in iPhone sales
Market value Apple has surpassed the combined capitalization of all US oil and gas companies. At the time of writing, Apple is worth $1.19 trillion. companies included in the S&P 500 Energy index is $1.1 trillion.
The S&P 500 Energy index includes 28 US oil and gas companies, including Apache, ConocoPhillips, Exxon Mobil, Chevron, Schlumberger and many others.
Since the beginning of the year, Apple quotes have added 70%. The company was the leader in terms of growth among the participants of the Dow Jones Industrial Average. At the same time, the smartphone manufacturer managed to overtake Microsoft: in 2019, Bill Gates' company has risen in price by 50%, being in second place.
Apple's capitalization for the first time exceeded $1 trillion on August 2, 2018. On that day, the shares of the iPhone manufacturer rose to $207.39. Apple managed to gain a foothold above $ 1 trillion recently - in September 2019.
In 2020, we should expect further growth in Apple shares, analysts are sure. In their opinion, the slowdown in iPhone sales growth will not greatly affect the company's results: instead, quotes will support the new revenue models that Apple has come up with. First of all, we are talking about services.
Apple has already managed to get iPhone owners to pay for services like Apple Music and Apple TV+. In the most recent quarter, services revenue at Apple rose 18% while device sales declined. Now revenues in this area account for just under 20% of Apple's total sales.
Judging by the comments of profile experts, expectations for the segment of iPhone smartphones are low. "Apple will continue to focus on services and installed base growth," said Citigroup analyst Jim Suva.
Citigroup has a price target for Apple shares from $250 to $300 a share. AT financial company recommend to buy securities. According to Jim Suwa, wireless headphones AirPods and Apple Watch smartwatches will give Apple strong sales and profits this holiday season. JP Morgan predicts that over the year's horizon, Apple shares will rise by 11% to $296 per share.
“We believe that the consensus underestimates the demand for Apple Watch and Apple AirPods,” Jim Suva explained his expectations. Wearables sales are likely to top $10 billion this quarter, Citi predicted.
Not all experts are as positive about the future of Apple. Maxim Group analyst Nehal Chokshi doubts that the technology giant will be able to generate high revenues from services in the future. In his opinion, buyers may prefer Android, abandoning the iPhone due to a growing portfolio of paid services.
Plans to switch to Android were reported by 9% of people who were surveyed this year in the Maxim Group. In 2017, 5% answered yes to a similar question. Perhaps this is not so much. But, according to Choksha, this is enough to refute the optimists' argument that the iPhone user will remain an iPhone user for the foreseeable future, and a growing portfolio of services will boost sales.
The analyst's target price for Apple is $190 per share, one of the lowest on the market. It assumes a reduction in the price of shares by 29% in the coming year. Some subject matter experts included in the Refinitiv consensus seem to agree with Maxim Group's arguments.
The consensus forecast is for Apple shares to decline by 2% over the year horizon, to $261.63 per share. 26 people surveyed by Refinitiv recommend buying the tech giant's stock. Another 13 respondents believe that the paper is worth holding, four are advised to sell.
You can right now on RBC Quote. The project was implemented jointly with VTB Bank.
The notional value of a publicly traded company. Capitalization is equal to the price of shares multiplied by their number. Often used to evaluate the effectiveness of investments in securities.Participants in exchange trading who sell securities to make a profit when quotations decrease. In other words, the "bears" seek to make a profit using a short position.