The Polish Deep Value Week – 2025/14
Calm Week in Eastern Deep Value Land
Companies mentioned
· Bowim (BOW) - Reports Significant Decline in 2024 Revenue and Profit Amid Challenging Market Conditions & Mentioned on X
· Dębica's (DBC) - Application for Special Auditor Rejected by Court Due to Pending Appeal
· ERG (ERG) - Reports Sharp Decline in Revenue and Profit for 2024
· ROPCZYCE (RPC) - Signs Multi-Year Contract with KGHM Polska Miedź Worth $67 Million
· Grupa Azoty Puławy (ZAP) - Signs New 10-Year Supply Agreement with Air Liquide Worth PLN 1.4 Billion
“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.
Bowim (BOW) - Reports Significant Decline in 2024 Revenue and Profit Amid Challenging Market Conditions & Mentioned on X
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Bowim S.A. reported preliminary consolidated net sales revenues of PLN 1,818,451 thousand for 2024, a decrease of PLN 218,249 thousand compared to the previous year. Operating profit dropped to PLN 4,704 thousand, down by PLN 30,695 thousand year-over-year. The consolidated net financial result showed a loss of PLN -10,581 thousand, representing a decline of PLN 23,864 thousand from the prior year. This deterioration is attributed to persistent global market challenges, including high energy costs, inflation, elevated interest rates, and ongoing geopolitical instability linked to the war in Ukraine. The average price of products sold in 2024 was approximately 15% lower than in 2023, continuing a price correction trend that began in May 2022, with an overall decline of around 40% throughout the period.
Stonks Value also shared his thoughts on X.
Dębica's (DBC) - Application for Special Auditor Rejected by Court Due to Pending Appeal
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Tire Company Dębica S.A. announced that the District Court in Rzeszów rejected the application from shareholders PKO BP Bankowy OFE, Nationale-Nederlanden OFE, FRAM Fundacja Rodzinna, and Lemuria Partners Sicav PLC for the appointment of a special auditor under Article 85 of the Act on public offerings. The rejection was based on the fact that a similar application, filed by the same shareholders in 2023, was previously dismissed and is still under appeal. According to Article 199 of the Code of Civil Procedure, a claim must be dismissed if it is already pending or has been conclusively judged. The decision is not final, and further proceedings may follow depending on the appeal's outcome.
ERG (ERG) - Reports Sharp Decline in Revenue and Profit for 2024
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ERG S.A. reported a significant drop in financial performance for 2024, with sales revenue declining to PLN 73,660 thousand from PLN 94,272 thousand in 2023. The company recorded a net loss of PLN -653 thousand compared to a net profit of PLN 3,199 thousand the previous year. Operating profit also turned negative at PLN -821 thousand, down from PLN 3,975 thousand in 2023. Total assets decreased from PLN 74,356 thousand to PLN 70,058 thousand. Cash flows were negative across all categories, with net cash flow from operating activities falling from PLN 6,260 thousand to PLN -1,128 thousand. ERG attributes these declines to challenging market conditions throughout 2024.
ROPCZYCE (RPC) - Signs Multi-Year Contract with KGHM Polska Miedź Worth $67 Million
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Zakłady Magnezytowe ROPCZYCE S.A. has entered into a significant multi-year agreement with KGHM Polska Miedź S.A. for the supply of refractory products and related engineering services, covering the period from 2025 to 2031. The contract is valued at approximately $67 million. Including a previous agreement with the same contractor, the total value of sales to be realized during this period will reach around $86.5 million. This extended cooperation is expected to substantially contribute to ROPCZYCE's overall sales and enhance its production stability and security over the long term.
Grupa Azoty Puławy (ZAP) - Signs New 10-Year Supply Agreement with Air Liquide Worth PLN 1.4 Billion
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Grupa Azoty Zakłady Azotowe "Puławy" S.A. has signed a new 10-year agreement with Air Liquide Polska Sp. z o.o. for the supply of gaseous oxygen and nitrogen, effective from October 27, 2025. The agreement replaces a previous contract from 2008 and has an estimated value of PLN 1.4 billion, which could extend to 15 years if renewed. The supply will be conducted using the "over the fence" formula from Air Liquide’s existing installation on Puławy's leased property. The contract ensures a stable supply of essential raw materials and aligns with new legal requirements concerning renewable energy sources. It also includes mechanisms for tracking and settling guarantees of origin for electricity used by Air Liquide in the production process.
The writer may own shares of the companies mentioned. This communication is for informational purposes only. AI helped us with this. Check important info.