The Polish Deep Value Week – 2025/05
Buybacks, New Reports, Business Updates and New Contracts
Companies mentioned
· Action SA (ACT) - Acquires Additional Treasury Shares Under Buyback Program
· Dekpol S.A. (DEK) - Faces Legal Suspension on Wiślinka Land Purchase Agreement
· Feerum S.A. (FEE) - Consortium Submits Most Competitive Bid for Egyptian Grain Storage Project
· Fasing Group (FSG) - Responds to Appeal on Special Auditor Appointment
· Fabryki Mebli Forte (FTE) - Reports Preliminary Q3 2024/25 Financial Results with Significant Profit Growth
· Gobarto S.A. (GOB) - Announces Resolutions Adopted at Extraordinary General Meeting
· Kompap (KMP) – Insider Purchase
· Monnari Trade (MON) – Further Buybacks
· Pamapol S.A. (PMP) - Secures PLN 47.9 Million Contracts Under EU Food Aid Program
· Zakłady Magnezytowe Ropczyce (RPC) - Receives PLN 2.06 Million Energy Cost Subsidy
· Tesgas S.A. (TSG) - Signs PLN 28.9 Million Agreement for Gas Pipeline Project with Polska Spółka Gazownictwa
“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) - Acquires Additional Treasury Shares Under Buyback Program
P/TB 0.95 │ Electronics│ URL
Action Sa has purchased a total of 13,021 treasury shares between January 23 and January 29, 2025, as part of its ongoing share buyback program. These transactions were executed under the authorization of Resolutions No. 14 and 15 of the Ordinary General Meeting on June 19, 2024, and subsequent amendments from the Extraordinary General Meeting on January 9, 2025. The purchases were conducted on the main market of the Warsaw Stock Exchange through Ipopema Securities SA.
The acquired shares represent approximately 0.0797% of the company’s share capital and include daily transactions ranging from 2,571 to 2,646 shares, with prices averaging PLN 20.71–20.91 per share. Following these latest acquisitions, ACTION SA now holds a total of 1,289,821 treasury shares, which constitutes 7.7996% of its share capital and voting rights.
Dekpol S.A. (DEK) - Faces Legal Suspension on Wiślinka Land Purchase Agreement
P/TB 0.63 │ Construction│ URL
Dekpol S.A. has announced that a court decision has suspended all activities related to the planned acquisition of approximately 9 hectares of land in Wiślinka, under a preliminary agreement signed on January 13, 2023 by its subsidiary Dekpol Inwestycje – Sol Marina II Sp. z o.o.. The legal order stems from an ongoing dispute between the current and former partner of the property’s seller, requiring a temporary halt in the transaction process.
The court has set a deadline for the entitled party to file a lawsuit, potentially seeking to invalidate the preliminary purchase agreement and restore the previous legal status of the property. Should a lawsuit be filed, Dekpol S.A. and its subsidiary will actively participate in the proceedings to defend their interests. The company maintains that it does not recognize the claims and remains committed to completing the acquisition once the legal situation is resolved. Prior to the suspension, Dekpol had already undertaken preparatory and design work on the land to obtain the necessary permits for the planned development investment.
Feerum S.A. (FEE) - Consortium Submits Most Competitive Bid for Egyptian Grain Storage Project
P/TB 0.94 │ Grain Storage│ URL
Feerum S.A. has announced that its consortium with Samcrete Egypt - Engineers & Contractors - SAE has submitted the most competitive financial bid in an ongoing international tender for the design, construction, and commissioning of grain storage and drying facilities in Toshka, Aswan Governorate, Egypt. The project, commissioned by the Egyptian Holding Company for Silos and Storage, aims to deliver a 300,000-ton storage capacity, including training and spare parts supply.
Earlier, the consortium’s technical offer was deemed compliant with all qualification criteria and tender conditions, leading to the invitation to participate in the financial bid opening. While Feerum’s proposal currently holds the most favorable pricing, the selection process remains ongoing. The winning bid will be determined based on a combined score of technical and financial evaluations. The contracting authority will notify the final selection after reviewing any potential complaints from bidders.
Feerum acknowledges the strategic and financial significance of the project, which, if awarded, would have a major impact on the company’s future financial and operational performance. The company will provide further updates once final decisions are made and contracts are signed.
Fasing Group (FSG) - Responds to Appeal on Special Auditor Appointment
P/TB 0.23 │ Mining Equipment│ URL
Fabryki Sprzętu i Narzędzi Górniczych Grupa Kapitałowa FASING S.A. has received a copy of an appeal dated September 30, 2024, challenging the District Court Katowice-Wschód’s decision to uphold the rejection of an application for the appointment of a special auditor. The appeal, filed with the District Court in Katowice, contests the earlier ruling made on July 5, 2024, which dismissed a complaint against the Court Registrar’s initial rejection of the auditor request.
FASING had previously disclosed the dismissal of the application in report no. 2/2024 and the rejection of the subsequent complaint in report no. 25/2024. The company maintains its position on the matter and intends to submit a formal response to the appeal within the designated legal timeframe.
Fabryki Mebli Forte (FTE) - Reports Preliminary Q3 2024/25 Financial Results with Significant Profit Growth
P/TB 0.74 │ Furniture│ URL
FABRYKI MEBLI "FORTE" S.A. has released preliminary financial results for Q3 2024/25, covering October 1 to December 31, 2024. The company reported consolidated sales revenue of PLN 293 million, a 4% increase compared to PLN 282 million in the same period last year. For the first nine months of the financial year (April–December 2024), total revenue reached PLN 772 million, 2% higher than the previous year. The company's EBIT for Q3 surged 175% to PLN 22 million (vs. PLN 8 million in Q3 2023/24), while EBITDA grew 59% to PLN 35 million (vs. PLN 22 million in Q3 2023/24).
The company attributed its improved profitability to cost optimizations implemented in previous quarters and the positive impact of its foreign exchange hedging strategy. With 85% of sales generated outside Poland, FORTE successfully mitigated the adverse effects of the strengthening EUR/PLN exchange rate, which fell from 4.49 to 4.3 (-4.3%) year-over-year. This hedging strategy added PLN 22.5 million to Q3 EBIT and PLN 42.7 million to nine-month results. However, EBIT was negatively impacted by PLN 4 million in operating costs related to downtime in TANNE's raw board production due to boiler room damage.
As of December 31, 2024, FORTE’s financial debt to EBITDA ratio stood at 2.6, remaining within the agreed limits of its financing agreement with banks. The company noted that these results remain preliminary estimates, with final figures to be published in the full Q3 2024/25 report.
Gobarto S.A. (GOB) - Announces Resolutions Adopted at Extraordinary General Meeting
P/TB 1.73 │ Food Processing│ URL / URL
Gobarto S.A. held its Extraordinary General Meeting (EGM) on January 29, 2025, during which all proposed resolutions were unanimously approved. Among the key decisions, Marcin Śliwiński was elected as the Chair of the General Meeting, and Maciej Jankowski and Agnieszka Kuczyńska were appointed to the Ballot Counting Committee. The EGM also formally approved the meeting agenda, which included a resolution on a corporate merger.
A significant outcome of the EGM was the approval of the merger between Gobarto S.A. (Acquiring Company) and its subsidiary AL BA Podlaskie Centrum Mięsne Sp. z o.o. (Acquired Company). The merger will proceed through the transfer of all assets of the acquired company to Gobarto S.A. without increasing its share capital, as Gobarto already holds 100% of AL BA’s shares. The merger will not introduce any special rights or benefits for shareholders, executives, or other involved parties.
All resolutions were passed with 100% of the votes cast in favor, representing 91.06% of the company’s share capital. Gobarto S.A. continues to implement strategic corporate actions and will provide further updates as needed.
Kompap (KMP) – Insider Purchase
P/TB 1.43 │ Printing│ URL
Kompap S.A. has announced that Waldemar Lipka, President of the Management Board, purchased 400 shares of the company on January 20, 2025, in a transaction carried out on the Warsaw Stock Exchange (GPW – XWAR market).
The shares were acquired at various prices, including 198 shares at PLN 22.8, 47 shares at PLN 23.0, 150 shares at PLN 23.0, 2 shares at PLN 24.0, and 3 shares at PLN 24.4, with an average purchase price of PLN 22.9165 per share.
Since 2012, Lipka has made 183 buy filings with an annual one year forward return of 12%.
Monnari Trade (MON) – Further Buybacks
P/TB 0.43 │ Apparel│ URL
Monnari Trade S.A. has continued its share buyback program, acquiring 3,600 shares on January 27, 2025, and an additional 3,832 shares on January 28, 2025, as part of an agreement with mBank S.A.’s Brokerage House signed on November 20, 2023. The purchases were made on the Warsaw Stock Exchange, with average purchase prices of PLN 4.89 and PLN 4.90 per share, respectively. Following these acquisitions, Monnari Trade S.A. now holds 5,270,488 treasury shares, which constitute 17.24% of the company’s share capital and entitle to 15.00% of voting rights at the General Meeting.
Pamapol S.A. (PMP) - Secures PLN 47.9 Million Contracts Under EU Food Aid Program
P/TB 0.50 │ Food│ URL
PAMAPOL S.A. has signed agreements with the National Support Center for Agriculture (KOWR) for the supply of food products under the European Funds for Food Aid Program 2021-2027, Subprogram 2024. The contracts include PAMAPOL’s supply of poultry ham and pork pâté, while its subsidiary Kwidzyn sp. z o.o. will provide peas with carrots. The total contract value amounts to PLN 47.9 million gross (5% VAT), with deliveries scheduled until August 31, 2025 to partner organizations such as the Federation of Polish Food Banks, Caritas Polska, the Polish Red Cross, and other welfare institutions.
Deliveries will commence within 14 days of contract signing, with monthly shipments continuing throughout the contract period. Payment will be made based on monthly settlement applications submitted by the contractors. As a guarantee for proper contract execution, PAMAPOL and Kwidzyn have provided performance security of approximately PLN 4.8 million.
The agreements include contractual penalties, including a 10% penalty for contractor-related withdrawal and a 30% penalty on the gross value of defective food batches. The contractor’s total liability for penalties is capped at 25% of the contract value, but KOWR retains the right to claim additional compensation for actual damages beyond the penalties.
Zakłady Magnezytowe Ropczyce S.A. (RPC) - Receives PLN 2.06 Million Energy Cost Subsidy
P/TB 0.31 │ Engineering│ URL
Zakłady Magnezytowe "ROPCZYCE" S.A. has been granted a one-time subsidy of PLN 2,056,639 under the "Aid for Energy-Intensive Industry Related to Natural Gas and Electricity Prices in 2024" program, administered by the National Fund for Environmental Protection and Water Management.
The financial support aims to offset rising energy costs for energy-intensive businesses, directly benefiting the Company’s financial performance for 2024. The granted subsidy will be reflected in ROPCZYCE's financial results, helping to mitigate the impact of elevated gas and electricity prices on its operations.
Tesgas S.A. (TSG) - Signs PLN 28.9 Million Agreement for Gas Pipeline Project with Polska Spółka Gazownictwa
P/TB 0.33 │ Construction│ URL
TESGAS S.A. has signed a significant agreement with Polska Spółka Gazownictwa Sp. z o.o. (PSG) for the commissioning and operation of high-pressure gas pipelines and a gas reduction and measurement station on the Aleksandrowo - Bydgoszcz route. The contract, dated January 27, 2025, covers the installation, testing, and start-up of DN250 and DN100 gas pipelines (total length: 12,723m), as well as the demolition of an existing high-pressure station.
The total contract value is PLN 28.9 million gross (PLN 23.5 million net), and the project is expected to be completed by May 31, 2026. TESGAS has provided a performance security of PLN 2.31 million. The agreement includes contractual penalties for delays, defects, and non-compliance, capped at 50% of the total net contract value, with PSG retaining the right to claim additional compensation for actual damages.
The writer may own shares of the companies mentioned. This communication is for informational purposes only.