The Polish Deep Value Week – 2025/01
New Orders, Buybacks and BOD change
Companies mentioned
· Action SA (ACT) - Further Share Buybacks
· Compremum S.A. (CPR) - Announces Board Restructuring and New Appointments
· Dekpol S.A. (DEK) - Secures Major Construction Contract and Withdraws from Real Estate Deal
· Monnari Trade (MON) – Further Buybacks and Management Transactions
· Pamapol S.A. (PMP) - Extends Financing Deadline and Revises Loan Terms
· Remak-Energomontaż SA (RMK) - Secures PLN 39.9 Million Biomass Boiler Contract
· Zakłady Magnezytowe Ropczyce (RPC) - Receives PLN 2.06 Million Energy Subsidy
· Tesgas S.A. (TSG) - Wins Tender for PLN 28.9 Million Gas Pipeline Project
“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 SA (ACT) - Further Share Buybacks
Buybacks│ P/TB 0.93 │ Electronics│ URL
Between December 27 and December 30, 2024, the company acquired a total of 5,839 own shares on the Warsaw Stock Exchange for a combined value of PLN 115,265. The average purchase prices were PLN 19.58 and PLN 19.90 per share for transactions on December 27 and December 30, respectively. These acquisitions represent 0.0353% of the company's share capital and voting rights. Including these transactions, Action SA now holds a total of 1,234,299 own shares, which constitute 7.46% of the company’s share capital and entitle to an equal percentage of votes at the General Meeting.
Compremum S.A. (CPR) - Announces Board Restructuring and New Appointments
BOD Change│ P/TB 0.21 │ Diversified Industrial│ URL / URL
Compremum S.A. has announced significant changes in the composition of its Management Board and Supervisory Board. On December 27, 2024, the Supervisory Board appointed its Chairman, Mr. Łukasz Fojt, to temporarily serve as Vice President of the Management Board for three months. This decision ensures smooth operational continuity. The Management Board now includes Bogusław Bartczak as President and Łukasz Fojt as the temporary Vice President.
Further changes occurred on December 30, 2024, when Mr. Krzysztof Miler resigned from the Supervisory Board due to personal reasons. On the same day, the Board appointed Mr. Adam Hollanek as a new member. Mr. Hollanek, an experienced leader in product development and technological innovation, brings over 20 years of expertise in AI, big data, and digital transformation. His extensive resume includes senior roles in companies across the USA, Poland, and the UK.
Dekpol S.A. (DEK) - Subsidiary Secures Major Construction Contract and Withdraws from Real Estate Deal
Contract│ P/TB 0.66 │ Real Estate│ URL / URL
Dekpol S.A. has announced two key updates regarding its subsidiaries. On December 27, 2024, Dekpol Budownictwo Sp. z o.o. signed a contract with the Municipality of Świdnik for the construction of a Multifunctional Development Center. The project includes a sports hall, surrounding infrastructure, and securing necessary permits. The work is expected to conclude by Q3 2026, with a contract value amounting to approximately 4% of Dekpol's 2023 revenue. The agreement allows for potential scope adjustments and includes provisions for penalties, including up to 20% of the contract value in case of delays or withdrawal due to the contractor's fault.
Separately, on December 30, 2024, Dekpol Inwestycje – Katowice Sp. z o.o., a special purpose vehicle, withdrew from a preliminary agreement to purchase real estate in Katowice. The withdrawal followed a technical analysis conducted under the agreement's terms.
Monnari Trade (MON) – Further Buybacks and Management Transactions
Buybacks│ P/TB 0.44 │ Apparel│ URL / URL / URL
On December 27 and 30, 2024, the company repurchased 2,581 and 2,680 shares, respectively, on the Warsaw Stock Exchange, at average prices of PLN 5.01 and PLN 5.10 per share. These shares account for a combined 0.017% of the company’s share capital and entitle to 0.015% of votes at the General Meeting. As of December 30, Monnari Trade holds 5,214,343 own shares, representing 17.06% of the share capital and 14.84% of voting rights. The buyback program is authorized by the General Meeting’s resolution from June 16, 2023, with shares potentially used for redemption, resale, or as collateral for company liabilities.
The company also received notifications of transactions involving its shares by President of the Management Board, Mr. Mirosław Misztal, and Modern Model Sp. z o.o., a related entity. Transactions included the loaning of 980,000 shares and the acquisition of 380,000 preference shares. These actions altered Modern Model’s shareholding to 7.33% of the company’s share capital and 7.46% of voting rights. Consequently, Mr. Misztal’s direct and indirect ownership of Monnari Trade shares now stands at 34.34% of share capital and 34.36% of voting rights, down from 36.30% and 34.99%, respectively, as of Q3 2024.
Pamapol S.A. (PMP) - Extends Financing Deadline and Revises Loan Terms
Refinancing│ P/TB 0.47 │ Food Production│ URL
Pamapol S.A. has announced an amendment to its syndicated loan agreement, originally signed on September 21, 2017. On December 31, 2024, an annex extended the deadline for borrowers—Pamapol, Kwidzyn sp. z o.o., and Mitmar sp. z o.o.—to secure additional financing of at least PLN 20 million until March 31, 2025. The prior deadline was December 31, 2024. This financing can be in the form of equity or financial debt, as previously disclosed in November 2023.
The annex also allows for additional financial indebtedness through bilateral non-revolving working capital loans of up to PLN 12 million for Pamapol and PLN 6 million for Mitmar. Further provisions include expanded use of factoring agreements for receivables, either with or without recourse, up to a maximum of PLN 20 million. Additionally, the lenders, including PKO Bank Polski, Credit Agricole Bank Polska, and Bank Gospodarstwa Krajowego, have temporarily waived certain financial covenant requirements as of December 31, 2024.
Remak-Energomontaż SA (RMK) - Secures PLN 39.9 Million Biomass Boiler Contract
Contract│ P/TB 0.50 │ Boilers│ URL
Remak-Energomontaż SA has signed an agreement with Miejska Gospodarka Komunalna Sp. z o.o. for the design and construction of a 10 MW biomass boiler at the Heating Plant in Oleśnica. The contract, valued at PLN 39.9 million net, includes the use of the contractor's own equipment and materials. Work begins immediately and is scheduled for completion within 24 months, with a final deadline of November 30, 2026.
The agreement incorporates standard contractual penalty provisions, capping potential penalties at 30% of the contract's value for either party. Total liability is limited to 100% of the contract value, excluding cases of willful misconduct. Liability for lost profits and indirect damages is explicitly excluded.
Zakłady Magnezytowe Ropczyce (RPC) - Receives PLN 2.06 Million Energy Subsidy
Subsidy│ P/TB 0.31 │ Construction Materials │ URL
Zakłady Magnezytowe "ROPCZYCE" S.A. has been awarded a one-time subsidy of PLN 2,056,639 under the Polish government program "Aid for energy-intensive industry related to natural gas and electricity prices in 2024." The funding decision was made by the National Fund for Environmental Protection and Water Management.
The subsidy aims to offset rising energy costs and directly supports energy-intensive industries. This financial assistance will positively impact the company's 2024 financial performance by reducing operating expenses associated with energy usage.
The grant reflects the company's proactive approach to managing energy costs amid challenging market conditions and highlights the government’s commitment to supporting industries vulnerable to energy price fluctuations.
Tesgas S.A. (TSG) - Wins Tender for PLN 28.9 Million Gas Pipeline Project
Order│ P/TB 0.29 │ Engineering│ URL
TESGAS S.A. has been selected as the most advantageous bidder in a tender organized by Polska Spółka Gazownictwa Sp. z o.o. for a significant infrastructure project in the Kuyavian-Pomeranian Voivodeship. The project involves constructing high-pressure gas pipelines DN250 and DN100 over a 12,723-meter route between Aleksandrowo and Bydgoszcz, along with a high-pressure gas reduction and measurement station (Qnom=25,000 Nm³/h) and related infrastructure. The existing high-pressure station will also be demolished as part of the investment.
The gross value of the offer is PLN 28.9 million, with project completion scheduled for April 2026. The contract will be finalized pending the absence of appeals from other tender participants. TESGAS S.A. will provide further updates regarding the contract in a separate report.
This project reflects TESGAS's strong position in the energy infrastructure sector and its ability to secure high-value contracts through competitive bidding processes.
The writer may own shares of the companies mentioned. This communication is for informational purposes only.