The Polish Deep Value Week – 2025/03
New Orders, Buybacks and BOD change
Companies mentioned
· Action SA (ACT) - Completes Share Buy-Back Transactions, Reaches 7.64% of Total Capital
· Korporacja Gospodarcza 'efekt' SA (EFK) - Preliminary H1 2024 Results Amid Corporate Dispute
· Monnari Trade SA (MON) - Continues Share Buyback Program & Preliminary Data for 4Q24
· Polimex Mostostal (PXM) - Consortium Signs PLN 81.9 Million Contract
· Stalprofil SA (STF) - Secures PLN 27.33 Million Contract for DN500 Gas Pipeline Construction
· Grupa Azoty Puławy's (ZAP) - Motion for Claim Security Rejected by Lublin District Court
“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) - Completes Share Buy-Back Transactions, Reaches 7.64% of Total Capital
P/TB 0.94 │ IT Distribution│ URL
ACTION SA announced the completion of its latest treasury share buy-back transactions between January 9 and January 15, 2025. These acquisitions were part of the ongoing buy-back program authorized by resolutions from the company’s Ordinary and Extraordinary General Meetings. During the period, ACTION SA purchased a total of 15,615 treasury shares for approximately PLN 323,476.20 at an average unit price ranging from PLN 20.35 to PLN 20.96. These shares represent 0.0945% of the company’s total share capital and voting rights. Following these transactions, ACTION SA now holds a total of 1,263,006 treasury shares, constituting 7.64% of its share capital and granting equivalent voting rights at the General Meeting.
Korporacja Gospodarcza 'efekt' SA (EFK) - Publishes Preliminary H1 2024 Results Amid Corporate Dispute
P/TB 0.29 │ URL
Korporacja Gospodarcza "efekt" SA released preliminary unaudited financial results for the first half of 2024, citing challenges stemming from a corporate dispute involving suspended Management Board members. The dispute resulted in delayed access to financial documentation and data, preventing a timely audit of the interim consolidated financial statements by a certified auditor. The preliminary report and management commentary have been published with a disclaimer of potential changes once complete documentation is reviewed.
The Issuer highlighted that the preliminary data were prepared following applicable accounting principles and provide a fair view of the company's financial position, although access to certain records was obstructed by the previous Management Board. A full audited report is expected by November 15, 2024, after the necessary audit procedures are completed.
Due to restricted access to the ESPI system, the report was published on the company’s website and submitted to the Polish Financial Supervision Authority in emergency mode.
Grupa Efekt reported consolidated net sales of PLN 29.6 million for H1 2024, a significant increase from PLN 19.7 million in H1 2023. Operating profit rose to PLN 8.3 million, compared to PLN 7.5 million the previous year, while net profit increased to PLN 7.6 million from PLN 4.4 million. However, the financial report remains unaudited due to incomplete documentation caused by a corporate governance conflict. An ongoing audit, initiated by the Supervisory Board, aims to verify the company’s financial operations in 2023–2024.
Monnari Trade SA (MON) - Continues Share Buyback Program, Reaches 17.15% of Share Capital & Preliminary Data for 4Q24
P/TB 0.43 │ Apparel │ URL
MONNARI TRADE SA has announced recent share buyback transactions conducted between January 8 and January 15, 2025, acquiring a total of 15,551 shares at an average price ranging from PLN 4.70 to PLN 4.94 per share. These transactions represent approximately 0.05% of the company’s share capital and entitle to a similar proportion of voting rights at the
Following these acquisitions, the company holds a total of 5,240,679 treasury shares, constituting 17.15% of its share capital and granting 14.91% of voting rights.
Monnari Trade SAalso announced consolidated revenues of approximately PLN 93.1 million for Q4 2024, a 1.2% increase compared to PLN 92.0 million in the same period of 2023. Full-year 2024 revenues rose by the same percentage to PLN 305.7 million from PLN 302.0 million in 2023. Despite the revenue growth, the gross margin for Q4 2024 slightly declined to 62.4% from 63.3% in Q4 2023, while the full-year gross margin improved to 60.8%, up from 59.9% in 2023.
At the end of 2024, the Capital Group operated 210 sales showrooms, a reduction from 219 in the prior year, reflecting a 4.1% decrease. The network comprised 185 Monnari showrooms, 8 Femestage showrooms, and 17 franchise locations, in addition to an online store. The total sales area also decreased by 2.5% to approximately 45.9 thousand m² from 47.1 thousand m² in 2023.
Polimex Mostostal (PXM) - Consortium Signs PLN 81.9 Million Contract for 47.39 MW Photovoltaic Plant Construction
P/TB 1.02 │ Construction│ URL
Polimex Mostostal SA and its subsidiary, Polimex Budownictwo sp. z oo, have signed an agreement with EW Marulewy sp. z oo to construct the Marulewy Photovoltaic Power Plant with a capacity of 47.39 MWp. The project, which excludes the supply of photovoltaic modules, will use tracker technology and includes the development of related infrastructure. The contract, valued at PLN 81.9 million net, is scheduled for completion by September 30, 2027.
The consortium will provide performance security in the form of a bank guarantee, amounting to up to 20% of the gross contract value at various project stages. Additionally, the agreement includes a guarantee and warranty ranging from 3 years (for certain components) to 25 years (for anti-corrosion coatings on steel structures). Payments will be made in installments tied to project milestones.
Stalprofil SA (STF) - Secures PLN 27.33 Million Contract for DN500 Gas Pipeline Construction
P/TB 0.23 │ Construction│ URL
STALPROFIL SA has been selected by Gas Transmission Operator Gaz-System SA to construct a section of the DN500 MOP 5.5 MPa gas pipeline on the Oświęcim-Szopienice-Tworzeń route. The project spans approximately 3 km from Łąkowa Street in Imielin to ZZU KZ0505 in Mysłowice and involves construction works valued at PLN 27.33 million gross.
The project is scheduled for completion within 24 months following the signing of the agreement between STALPROFIL and Gaz-System. The company has been recognized as the most advantageous bidder in this public procurement procedure, reflecting its competitive offering and expertise.
Grupa Azoty Puławy's (ZAP) - Motion for Claim Security Rejected by Lublin District Court
P/TB 0.27 │ Chemicals│ URL
Grupa Azoty Zakłady Azotowe “Puławy” S.A. announced that the District Court in Lublin, 9th Commercial Division, has rejected its application to secure a claim related to the suspension of the contractor's withdrawal from a September 25, 2019 contract. The contract concerns the construction of a coal-fueled power unit in Puławy. The court’s decision denies the requested suspension for the duration of the ongoing proceedings.
The company has stated its intention to request a justification for the court’s decision to better understand the grounds for dismissal. Further actions will be evaluated following receipt of this justification. This development relates to the broader legal and contractual complexities surrounding the project. Grupa Azoty remains engaged in addressing the implications of this decision as part of its ongoing legal proceedings.
The writer may own shares of the companies mentioned. This communication is for informational purposes only.