MinFin is scheduled to auction CZK3.0bn of nine-year bonds and CZK2.0bn of 20-year bonds. As in the case of the last auction, however, the final volume sold can be expected to be lower. The shorter bond will have its third reopening and has so far met with high demand (avg. b/c 4.3). 

Issuance activity: MinFin is scheduled to auction CZK3.0bn of nine-year bonds and CZK2.0bn of 20-year bonds. As in the case of the last auction, however, the final volume sold can be expected to be lower. The shorter bond will have its third reopening and has so far met with high demand (avg. b/c 4.3). In addition, it will likely be preferred by MinFin in the coming months due to excess room in the issuance limit and a low coupon. The longer bond is also preferred this year and, despite the higher maturity, it is reaching high demand (avg. b/c 2.7). MinFin is focusing now more on the longer end of the curve after securing more than 96% of its borrowing needs this year. As we expected, the new MinFin forecast has prompted discussions on the state budget for next year, which should imply almost the same CZGB supply as this year. As the coming months begin to signal the final picture of the public finance deficit, in our view the markets will start to take this into account, resulting in CZGB cheapening in ASW terms and a rise in yields, especially at the longer end of the curve. 

Avast released strong figures for the first half of this year that beat market estimates. The number of customers has increased. The interim dividend will increase and is also above analysts' expectations. Furthermore, the full-year guidance was increased.

Avast released strong figures for the first half of this year that beat market estimates. The number of customers has increased. The interim dividend will increase and is also above analysts' expectations. Furthermore, the full-year guidance was increased.

The reported numbers increased year-on-year and exceeded analysts' estimates at all levels. The company benefited from the trend of working from home, supported by the coronavirus pandemic and the resulting measures. Avast is the winner of the whole situation. The number of customers in the Desktop sector increased +5.1% to 13.26m compared to the end of last year. Billings are USD469.1m i.e. 2.1% above last year's result. Adjusted sales increased 1.5% to USD433.1m in the first half of the year, adjusted EBITDA was USD241.4m (2.1% yoy) and net income was USD169.8m (14. 6% yoy). The adjusted EBITDA margin increased to 55.7% year-on-year (compared to 55.4% a year ago). Behind the significant growth in net profit is a decline in debt and related financial items and a decline in interest rates.

Avast has confirmed its strong ability to generate cash and further reduces debt. Net debt is USD817m, compared to USD1,104.6m a year ago and USD885m at the end of 2019. The debt ratio (net debt to EBITDA) decreased to 1.7x from 1.8x at the end of 2019 (2.4x for the same period last year).

Avast's management slightly increased its full-year sales growth expectations to the upper end of the mid-single digits. The EBITDA margin should remain flat year-on-year. Given the results achieved and the outlook for the end of the year, we consider this to be a cautious guidance that Avast is likely to exceed. It also proposes an interim dividend of USD0.048 (0.044 last year, 0.046 expected).