The Polish Deep Value Week – 2024/51
Further Buybacks, a few Orders and Shareholder Meeting Resolutions
Companies mentioned
· Action (ACT) - Further Buybacks
· Atlanta Poland (ATP) - Declares Dividend and Reports AGM Resolutions
· Fasing (FSG) - Explores Investment Opportunities in Banovići
· Gobarto (GOB) - Adopts 2025–2030 Strategy to Strengthen Market Leadership
· Helio (HEL) - OGM 2024, No Dividend but new Buyback Program
· Monnari Trade (MON) – Further Buybacks
· Mercator Medical (MRC) – New Presentation & Real Estate Investments, Insider Buying
· NTT System (NTT) – Chart by Visse36
· Prochem (PRM) - Secures Major Contract for Oil Seed Processing Plant Project
· Polimex Mostostal (PXM) - Key Agreements for Financial and Infrastructure Projects
“Graham’s Geiger counter”
Benjamin Graham suggested that one way to measure the valuation of the overall market was to assess the number of net-nets available. When many such opportunities exist, it indicates a cheap market overall, while their absence suggests that the market is expensive. Today’s net-nets, however, are not the same as Graham’s net-nets. Many are un-investable being Chinese RTO’s, loss-making biopharma’s etc. But we do think it is interesting to follow this number over time, and what percentage of total listed stocks qualify as a “naked” net-net without any type of quality adjustments to make them investable. Below is a net-net screen from Stockopedia.
Action (ACT) - Further Buybacks
Buybacks│ P/TB 0.88 │ Electronics│ URL
ACTION SA announced purchase of treasury shares between December 12 and December 18, 2024, as part of its ongoing share buyback program. The transactions involved a total of 14,872 shares, valued at approximately PLN 287,314, with an average share price ranging between PLN 18.78 and PLN 19.69. The acquired shares represent a cumulative 0.09% of the company's share capital. Following these transactions, ACTION SA now holds 1,219,849 treasury shares, accounting for 7.38% of its share capital and voting rights.
Atlanta Poland (ATP) - Declares Dividend and Reports AGM Resolutions
Dividend│ P/TB 0.99 │ Nutrition│ URL
Atlanta Poland S.A. announced key outcomes from its Annual General Meeting (AGM) held on December 18, 2024. The AGM approved a dividend payment of PLN 0.85 per share (4.7% yield), totaling PLN 5.18 million. The record date for dividend entitlement is set for February 7, 2025, with payments scheduled for March 3, 2025.
Shareholder voting revealed that ROCKFIELD HOLDING AG held 78.48% of the votes at the AGM, representing 57.02% of the total voting power. Generali Otwarty Fundusz Emerytalny accounted for 9.92% of AGM votes, and Paweł Cichosz held 8.32%.
Fasing (FSG) - Explores Investment Opportunities in Banovići (Bosnia)
Potential Project│ P/TB 0.22 │ Metal Equipment│ URL
A delegation from Fasing, the world’s largest producer of metal industry chains, visited the municipality of Banovići to explore potential investment opportunities. The company expressed significant interest in establishing production facilities for metal chains in the region, highlighting the potential for business collaboration and expansion of their manufacturing capabilities. The municipality emphasized that FASING’s interest represents a crucial step toward strengthening economic cooperation and attracting foreign investments. Such developments are expected to drive local economic growth and create new job opportunities.
Gobarto (GOB) - Adopts 2025–2030 Strategy to Strengthen Market Leadership
Strategy Plan│ P/TB 1.76 │ Food Processing│ URL
Gobarto S.A. has announced the adoption of its strategic plan for 2025–2030, building on the foundation set by its 2019–2024 strategy. The new plan focuses on the organic growth of the company's core segments—animal, production, and distribution—with the aim of strengthening Gobarto’s position as a leader in the Polish meat market and expanding its presence across Europe.
In the animal segment, Gobarto plans to invest in breeding farms and expand pig production through the Gobarto 500 Program and contract fattening initiatives. The production segment will see increased investments in slaughterhouse capacity, enhanced meat cutting lines, and the automation of logistics and packaging processes. For the distribution segment, the company intends to boost sales volumes by leveraging existing assets, opening new wholesalers, and exploring acquisitions in the distribution space.
Sustainability is a core focus of the strategy. Gobarto aims to develop its renewable energy capacity through the construction of biogas plants and photovoltaic installations at its locations. These efforts align with the company’s ESG and Climate Strategies for 2024–2030, which prioritize reducing emission intensity (Scopes 1 and 2), increasing renewable electricity production, and expanding the output of organic fertilizers.
Helio (HEL) - OGM 2024, no dividend but new buyback program
OGM│ P/TB 0.71 │ Food & Nutrition│ URL
On December 16, 2024, Helio S.A. convened its Ordinary General Meeting (OGM) to address several key administrative and financial matters for the fiscal year 2023/2024. The OGM approved the company’s financial statements for the fiscal year ending June 30, 2024, reporting a net profit of PLN 26.74 million. This profit will be fully allocated to reserve capital.
The OGM approved amendments to §18.1 and §19 of the company’s Articles of Association, introducing changes to quorum requirements and clarifying permitted meeting locations.
Notably, shareholders approved a new share buyback program, allocating PLN 10 million to repurchase up to 20% of the company's shares over a five-year period. Unused reserves from a prior buyback program, totaling PLN 8.26 million, were dissolved and redirected to general reserves.
Lastly, some shareholders raised objections to specific resolutions, including the distribution of profits and amendments to the Articles of Association. These objections were formally recorded in a notarial deed.
Monnari Trade (MON) – Further Buybacks
Buybacks│ P/TB 0.44 │ Apparel│ URL
Monnari Trade S.A. has announced the completion of several share buyback transactions conducted between December 13 and December 19, 2024, as part of its ongoing share repurchase program.
December 13, 2024: 1,778 shares at an average price of PLN 5.10 per share, increasing total holdings to 5,196,587 shares, representing 17.00% of the share capital and 14.79% of voting rights.
December 16, 2024: 1,789 shares at an average price of PLN 5.10 per share, increasing total holdings to 5,198,376 shares, representing 17.01% of the share capital and 14.79% of voting rights.
December 17, 2024: 1,965 shares at an average price of PLN 4.98 per share, increasing total holdings to 5,200,341 shares, representing 17.02% of the share capital and 14.80% of voting rights.
December 18, 2024: 2,322 shares at an average price of PLN 5.06 per share, increasing total holdings to 5,202,663 shares, representing 17.02% of the share capital and 14.80% of voting rights.
December 19, 2024: 2,373 shares at an average price of PLN 5.00 per share, increasing total holdings to 5,205,036 shares, representing 17.03% of the share capital and 14.81% of voting rights.
The repurchased shares may be utilized for various purposes, including cancellation, resale, securing liabilities, or as consideration in strategic transactions involving financial assets or acquisitions.
Mercator Medical (MRC) – New Presentation, Real Estate Investments & Insider Buying
New Report│ P/TB 0.57 │ Medical Devices│ URL / URL
Mercator Medical has reported significant growth and operational improvements during the January–September 2024 period, achieving sales revenues of PLN 393.3 million, an increase of 12% year-over-year. EBITDA improved by over PLN 41-42 million compared to the previous year. In the third quarter of 2024 alone, revenues grew by 18% year-over-year to PLN 139.5 million. This quarter marked the second consecutive positive EBITDA result after six quarters of losses, with the operating loss also narrowing.
The company continues to address profitability challenges, particularly in its distribution segment, while the production segment shows promising trends. According to CEO Monika Żyznowska, the recently imposed high tariffs on Chinese disposable gloves by the United States have significantly influenced market dynamics. This development has led to increased demand for gloves produced outside of China, particularly in the US market. While this benefits Mercator’s production facilities in Thailand, it could lead to downward price pressures in the European market as Chinese manufacturers redirect their exports.
In response to rising demand, Mercator is considering restarting production at its oldest factory in Thailand, which has been idle due to low post-COVID demand and depressed market prices. The company plans to reactivate four double production lines to meet anticipated orders.
In addition to its core business, Mercator Medical is expanding its real estate operations through its subsidiary, Mercator Estates. In October, the group announced the purchase of two historic tenement houses in central Krakow for EUR 11 million. These properties will be redeveloped into premium apartments, with construction expected to begin by late 2025 or early 2026. The company views real estate investments as part of a four-year cycle and aims to invest PLN 150 million in new projects in 2025.
Mercator continues to enhance its presence in complementary markets, with expansion plans in nonwoven and glove-related products. CEO Żyznowska emphasized the company’s commitment to strengthening its operational and financial position while pursuing diversification opportunities. Further developments are expected as the group finalizes additional projects and adapts to shifting market conditions.
Anabaza RAIF V.C.I.C. LTD., a closely associated entity with Wiesław Żyznowski, Chairman of the Supervisory Board, and Urszula Żyznowska, Vice-Chairman of the Supervisory Board of Mercator Medical S.A., has disclosed multiple acquisitions of ordinary shares in the company. The transactions were executed on the Warsaw Stock Exchange (XWAR) on December 9, 11, and 12, 2024. On December 9, 2,000 shares were acquired at an average price of PLN 50.19 per share, while on December 11, another 2,000 shares were purchased at an average price of PLN 51.38. The largest transaction occurred on December 12, involving 6,000 shares at an average price of PLN 51.89. These transactions highlight ongoing activity by closely associated entities in Mercator Medical's equity.
NTT System (NTT) – Chart by Visse36
Mentioning │ P/TB 0.52 │ Electronics Distribution│ URL
Vyyse36 share a chart on NTT on X.
Prochem (PRM) - Secures Major Contract for Oil Seed Processing Plant Project
Order│ P/TB 1.18 │ Construction│ URL
Prochem SA has signed an agreement with StaOil sp. z o.o. for the general implementation of an investment at the Oil Seed Processing Plant in Kosów Lacki. The contract, finalized on December 11, 2024, includes design work and general execution, with the project scheduled for completion by February 2027. The estimated remuneration for Prochem SA is expected to exceed PLN 50 million net, based on the investment budget and scope of work. The final payment will be determined following the settlement of project costs, as it incorporates both design services and execution costs, along with a margin.
Polimex Mostostal (PXM) - Key Agreements for Financial and Infrastructure Projects
Refinancing & Project│ P/TB 0.84 │ Construction│ URL / URL
Polimex Mostostal has signed an annex to its Guarantee Facility Agreement with PKO BP, extending the availability of a PLN 90 million guarantee limit until March 31, 2025. The agreement, originally established in December 2020, remains otherwise unchanged, ensuring financial flexibility for the company in the near term.
In a separate development, Polimex Infrastruktura sp. z o.o., a wholly-owned subsidiary of Polimex Mostostal,
entered into a significant subcontracting agreement with RG Inżynieria sp. z o.o. for the installation of underground water and sewage networks. The project, valued at PLN 45 million net, is tied to the expansion of the Olefins installation as part of the EPC Package K-003 project. The subcontractor is expected to complete the work by October 31, 2026, with a 72-month quality guarantee. The agreement includes provisions for bank or insurance guarantees to ensure performance and defect liability, as well as penalties for non-compliance, capped at 25% of the gross remuneration.
The writer may own shares of the companies mentioned. This communication is for informational purposes only.