Louis price target at EUR 0.72

Marfin Egnatia have kept their price target on the share price of Louis Pcl (LUI.CY) unchanged at EUR 0.72 per share following the release of the first quarter results. This implies a 33% upside potential from the stock’s current price.

Louis Plc released its 1Q08 results reporting an improved bottom line figure with
loss after minority coming at EUR 20.1mln (+3.0% yoy). However, revenue posted
a 43% yoy decrease at EUR 16.3mln due to lower revenues associated primarily
with the cruise division (-EUR 9.2m or -47% yoy) and to a lesser extent with the
hotel division (-EUR 3.1m or -35% yoy). Marfin Egnatia highlight the significant boost to the bottom line from the higher FX related gains (+EUR 3.5m) and the lower tax
charge vs. 1Q07 (-1.2m).

The Group’s total net debt to equity (including bank overdrafts and finance leases)
improved from 131% in 1Q07 to 104% in 1Q08, but worsened compared to FY07
(97%). The net debt position (including finance leases) of the Group as at 1Q08
stood at EUR 287m compared to EUR 341m in 1Q07 and EUR 282m in FY07.

Following the release of LUI’s 1Q08 results, Marfin Egnatia have fine-tuned their FY08 explicit estimates alone. Although the results of 1Q (and 4Q) of each year are not indicative for full year performance, Marfin Egnatia’s revised bottom line figure (after minority interest) for FY08 comes in higher (vs. previous estimate) at EUR 24.1mln.

The major goal of the Group in 2008 and beyond is to revamp its fleet into younger and larger capacity ships sailing in higher yielding destinations. The chartering of vessels is also a less risky strategy at this stage of the economic cycle. During 2008, LUI will deploy 3 ships out of Greece (vs. 4 up to 2007) and 2 ships out of Cyprus (vs. 3 up to 2007), whilst the Group already withdrew 2 low capacity ships from its fleet. Additionally, cruiser ‘Ivory’ (being deployed out of Cyprus), which is included in 2008 itineraries, would also be removed from LUI’s fleet in 2009.