The Polish Deep Value Week – 2025/06-07
Buybacks, new Reports, Shareholder Changes and Credit Agreements
Companies mentioned
· Action SA (ACT) - Reports Estimated January Turnover and Updates on Share Buyback Program
· Atlanta Poland (ATP) - Reports Decline in First-Half 2024/2025 Financial Results
· Bowim (BOW) - Extends Credit Agreement with Bank Polska Kasa Opieki SA Until 2027
· Dekpol (DEK) - Expands Insurance Guarantee Limit and Amends Warehouse Construction Contract
· Feerum S.A (FEE) - Value Closed-End Investment Fund Increases Stake
· Fasing S.A. (FSG) - Signs Agreements with Fasing Sino-Pol and Gunnebo Industrier AB
· Helio S.A. (HEL) - Reports Preliminary Q2 2024/2025 Financial Results
· KPPD (KPPD) - Reports Preliminary 2024 Financial Results with Significant Losses
· Monnari Trade (MON) - Continues Share Buyback Program
· Remak-Energomontaż (RMK) - Vice President Resigns
· Wasko (WAS) - Extends Bank Credit Agreement and Signs IT Services Contract
· Grupa Azoty (ZAP) - Demands PLN 239.3 Million Penalty from Contractor for Power Unit 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) - Reports Estimated January Turnover and Updates on Share Buyback Program
ACTION SA has reported an estimated turnover of PLN 232 million for January 2025, marking a slight year-over-year increase of 0.43% compared to the same period in 2024. The company emphasized that its profit margins remain strong, estimated at approximately 7.7%. The management highlighted the stability in financial performance despite broader market conditions.
As part of its ongoing share buyback program, ACTION SA acquired a total of 11,092 treasury shares between February 6 and February 12, 2025. The purchases, executed on the Warsaw Stock Exchange, were made at an average price ranging from PLN 21.04 to PLN 21.50 per share. These transactions accounted for small incremental stakes in the company, contributing to a total holding of 1,312,630 treasury shares, representing 7.94% of the company’s total share capital.
Atlanta Poland (ATP) - Reports Decline in First-Half 2024/2025 Financial Results
P/TB 1.05 │ URL
ATLANTA POLAND S.A. has released preliminary financial results for the first half of the 2024/2025 financial year, covering the period from July 1 to December 31, 2024. Net sales revenue reached PLN 245.1 million, marking a 1.6% decline compared to the same period in the previous financial year. The company also reported a 17.4% drop in gross profit on sales to PLN 40.8 million, while EBITDA decreased by 36.6% to PLN 16.3 million. Net profit stood at PLN 9.8 million, reflecting a sharp decline of 38.4% year-over-year.
The lower profitability was mainly attributed to a decline in the gross sales margin, which fell to 16.7% from 19.8% in the previous year. This reduction impacted financial performance across all profit levels. The company highlighted that margin fluctuations are inherent to its business, largely driven by changes in raw material prices and currency exchange rates. The previous year’s margin was exceptionally high, and maintaining such levels moving forward remains challenging despite efforts to optimize profitability.
Bowim (BOW) - Extends Credit Agreement with Bank Polska Kasa Opieki SA Until 2027
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Bowim S.A. has signed an annex to its multi-purpose credit limit agreement with Bank Polska Kasa Opieki SA, extending the availability period until January 30, 2027. The agreement, originally signed on March 28, 2022, and previously amended, includes Bowim S.A. as the primary borrower, along with its subsidiaries Passat-Stal SA, Betstal Sp. z o.o., and Bowim-Podkarpacie Sp. z o.o.
Under the revised terms, the borrowing limits are set as follows: Bowim S.A. can access up to PLN 81 million, Passat-Stal SA up to PLN 3.5 million, Betstal Sp. z o.o. up to PLN 200,000, and Bowim-Podkarpacie Sp. z o.o. up to PLN 10 million. Other conditions remain consistent with market standards for such agreements.
Dekpol (DEK) - Expands Insurance Guarantee Limit and Amends Warehouse Construction Contract
Dekpol S.A. has signed an annex to its cooperation agreement with Sopockie Towarzystwo Ubezpieczeń ERGO Hestia S.A., increasing the total guarantee limit from PLN 86 million to PLN 110 million. This extension enhances the insurance guarantee framework established in 2008. Dekpol previously reported amendments to this agreement in its current reports No. 48/2022 and No. 44/2023.
Additionally, Dekpol Budownictwo Sp. z o.o., a subsidiary of Dekpol S.A., signed an annex to its construction contract for a warehouse building in the Kuyavian-Pomeranian Voivodeship. The amendment adjusts the scope of work, adding post-acceptance works after the project's final approval in December 2024. As a result, the contract’s total value increased by approximately 21%, now equating to 14% of Dekpol Capital Group’s 2023 revenue.
The post-acceptance works are scheduled for completion in Q1 2025, while some parts depend on the issuance of necessary permits by the investor.
Feerum S.A (FEE) - Value Closed-End Investment Fund Increases Stake
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Feerum S.A. has received a notification from AgioFunds Towarzystwo Funduszy Inwestycyjnych S.A., acting on behalf of VALUE Closed-End Investment Fund with a separated Subfund 1, regarding an increase in its shareholding. Following a transaction on January 30, 2025, the fund acquired 9,837 shares in Feerum, increasing its voting rights by over 2% compared to its previous notification from October 3, 2023.
As a result, the fund's direct stake in Feerum rose from 1,835,296 shares (19.24% of share capital and voting rights) to 1,845,133 shares, now representing 19.35% of both share capital and total voting rights at the company’s General Meeting. The Management Board has attached the full notification for reference.
Fasing S.A. (FSG) - Signs Agreements with Fasing Sino-Pol and Gunnebo Industrier AB
FASING S.A. has signed agreements with its subsidiary, Fasing Sino-Pol (Beijing) Mining Equipment and Tools Co., Ltd., totaling CNY 8.28 million. The contracts cover the delivery of chains and connecting links in batches between March 20, 2025, and May 23, 2025. In the event of force majeure, the execution period may be extended. Disputes will first be settled through consultation, and if unresolved, referred to a Polish arbitration court. Since September 19, 2024, the total value of contracts between the companies, including the new agreements, has reached CNY 25.22 million.
Additionally, Fasing S.A. has accepted orders from Sweden-based Gunnebo Industrier AB for chains worth EUR 318.1 thousand. The total value of orders placed by Gunnebo Industrier AB since December 21, 2023, now amounts to EUR 3.6 million.
Helio S.A. (HEL) - Reports Preliminary Q2 2024/2025 Financial Results
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Helio S.A. has released preliminary financial results for the second quarter of the 2024/2025 financial year (October–December 2024). The company expects sales revenue of PLN 148 million, marking a 3% decline compared to PLN 153 million in the same period of the previous year. Additionally, net profit is estimated at PLN 10 million, reflecting a 27% drop from PLN 13.63 million recorded in the corresponding quarter of 2023.
The decline in net profit is attributed to a reduction in gross sales profitability by 2.7 percentage points year-over-year. The company considers this information significant for investors and will provide detailed financial results in its half-yearly report, scheduled for publication on March 31, 2025.
KPPD (KPPD) - Reports Preliminary 2024 Financial Results with Significant Losses
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KPPD-Szczecinek S.A. has announced preliminary financial results for 2024, reporting sales revenues of PLN 326 million, down from PLN 356 million in 2023. Gross profit on sales fell to PLN 15.3 million from PLN 37.2 million in the previous year. The company posted a net financial loss of PLN 44.2 million, significantly widening from the PLN 18.1 million loss in 2023, while EBITDA dropped to negative PLN 20.7 million compared to negative PLN 2.1 million a year earlier.
The company attributes the loss to declining sales revenue due to lower wood product prices amid a market downturn, combined with high wage, electricity, and raw material costs. These figures remain preliminary, and the final audited results will be disclosed in the 2024 financial statements.
Monnari Trade (MON) - Continues Share Buyback Program
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Monnari Trade S.A. has been actively repurchasing its own shares as part of its ongoing buyback program. Between January 31 and February 13, 2025, the company acquired a total of 25,368 shares on the Warsaw Stock Exchange, with purchase prices ranging from PLN 4.98 to PLN 5.14 per share. Each transaction represents a small fraction of the company's share capital, with the most recent buyback on February 13 adding 3,500 shares at an average price of PLN 5.04 per share.
As of the latest acquisition, Monnari Trade holds a total of 5,310,241 own shares, accounting for 17.37% of its total share capital and entitling the company to 15.11% of votes at the General Meeting. The buyback program, authorized by the General Meeting resolution from June 16, 2023, allows the repurchased shares to be redeemed, resold, used as collateral for liabilities, or transferred as payment for acquiring financial assets.
The company continues to execute the buyback through mBank S.A. under the terms established in the November 20, 2023 agreement. The transactions comply with EU regulations on market abuse and share buyback programs. Detailed information on the purchases has been provided in official attachments.
Remak-Energomontaż (RMK) - Vice President Resigns
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Remak-Energomontaż S.A. announced that its Vice President, Mr. Sławomir Sieradzki, has resigned from his position, effective February 7, 2025. The resignation also includes stepping down from the company’s Management Board.
The company did not disclose the reasons behind Mr. Sieradzki’s departure. The resignation was officially submitted on February 7, and no successor has been announced at this time.
Wasko (WAS) - Extends Bank Credit Agreement and Signs IT Services Contract
WASKO S.A. has signed an annex with ING Bank Śląski S.A., extending its multi-product credit agreement until January 31, 2026. The agreement maintains the existing credit limit of PLN 29.5 million, distributed among WASKO and its subsidiaries. The funds will primarily be used for bank guarantees, letters of credit, and current account credit. The agreement includes collateral such as registered pledges on inventories, mortgage security, and receivables assignments.
In a separate development, WASKO has secured a contract with the Scientific and Academic Computer Network - State Research Institute for IT maintenance and support services related to the OSS system within the Nationwide Educational Network. The contract, valued at PLN 11.06 million gross, includes an optional component worth PLN 4.07 million. The agreement spans 24 months with an option for a 12-month extension and includes contractual penalties for delays and service breaches, capped at 40% of the total contract value.
Grupa Azoty (ZAP) - Demands PLN 239.3 Million Penalty from Contractor for Power Unit Project
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Grupa Azoty Zakłady Azotowe "Puławy" S.A. has issued a PLN 239.3 million contractual penalty against the consortium responsible for the construction of a coal-based power unit in Puławy. The penalty, equivalent to 20% of the contract's total remuneration, follows the Company's withdrawal from the contract due to reasons attributed to the Contractor.
The consortium, composed of Polimex Mostostal S.A., Polimex Energetyka Sp. z o.o., and SBB ENERGY S.A., has been given seven days to settle the penalty. The Company also retains the right to claim additional penalties for project delays, as stipulated in the contract. Notably, a contractual clause exempts this withdrawal penalty from the usual 30% cap on total penalties.
The writer may own shares of the companies mentioned. This communication is for informational purposes only.