The Polish Deep Value Week – 2025/16
A Few New Reports, Dividend, Financial Updates and Governance Matters
Companies mentioned
· Dekpol (DEK) - Q1 2025 Residential Sales Update & Major Construction Contracts for Logistics Projects Signed in Poland
· Efekt (EFK) - Sharp Decline in Profitability in 2024
· PA Nova (NVA) - Signs Construction Contract for New Shopping Center with Kauflandxxx
· Sanwil Holding (SNW) - Change in CEO as Robert Buchajski Replaces Adam Buchajski
· Stalprofil (STF) - Management Board Recommends PLN 0.30 Dividend per Share for 2024
· Stalprodukt (STP) - Supreme Administrative Court Upholds PLN 990,000 Fine Against CEO Piotr Janeczek
· Grupa Azoty Puławy (ZAP) - Net Profit Boosted by PLN 200m from Reversal of Impairments, PLN 52m Hit from Deferred Tax Adjustment
“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.
Dekpol (DEK) - Q1 2025 Residential Sales Update & Major Construction Contracts for Logistics Projects Signed in Poland
In the first quarter of 2025, Dekpol S.A. reported the sale of 173 residential units based on reservation, development, and preliminary agreements. These sales were primarily located in Gdańsk and surrounding areas (116 units), Sobieszewo Island and the Vistula Spit (53 units), and Warsaw (4 units). Of these, 124 units will be recognized in the Group's financial results for the quarter, with 80 units in Gdańsk and 44 on Sobieszewo Island and the Vistula Spit. As of March 31, 2025, Dekpol had 801 units available for sale, including 247 in Gdańsk, 232 on Sobieszewo Island and the Vistula Spit, and 322 in Warsaw.
Dekpol S.A. has announced two significant developments via its subsidiary, Dekpol Budownictwo Sp. z o.o. First, the company signed a general contracting agreement with Żabka BS, part of the Żabka Group, for the design and construction of a logistics center near Łódź. The facility will cover approximately 42,000 m² and include various storage zones and office space. Completion is scheduled for H2 2026, with a total contract value of around €35 million. The agreement includes standard penalty clauses for delays and defects, and both parties have withdrawal rights under defined conditions.
Secondly, Dekpol Budownictwo agreed on key terms with an EQT Real Estate group company for a logistics park project in the Silesian Voivodeship. The investment, to be executed in four stages, involves constructing four halls with supporting infrastructure. Stage I is valued at around 5% of Dekpol Group’s estimated 2024 sales (or 7.5% if adapted into cold storage), with the remaining stages potentially adding up to another 8%. Execution timelines range from 6 to 8 months per stage, depending on customization and triggering by the investor.
Efekt (EFK) - Sharp Decline in Profitability in 2024
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Efekt S.A. published its consolidated annual report for 2024, showing a significant year-over-year decline in profitability. Net sales fell by 18% to 48,432k PLN, while net profit dropped sharply from 39,922k PLN in 2023 to 6,207k PLN in 2024. Operating profit also fell drastically from 55,457k PLN to 14,091k PLN. Cash flow from operating activities improved to 19,530k PLN, but was offset by higher net outflows from financing activities at -19,960k PLN.
PA Nova (NVA) - Signs Construction Contract for New Shopping Center with Kauflandxxx
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PA Nova S.A. has announced the signing of a construction contract with Kaufland Polska Markety, received on April 17, 2025. The agreement covers the development of a shopping center complete with parking and related infrastructure. The total net remuneration for PA Nova amounts to approximately 11% of the Group’s most recently reported annual consolidated revenues. Handover of the completed facility is scheduled for February 19, 2026.
Sanwil Holding (SNW) - Change in CEO as Robert Buchajski Replaces Adam Buchajski
Sanwil Holding S.A. announced a change in its top management following the resignation of Adam Buchajski as President and member of the Management Board, effective end of day April 15, 2025. The company cited personal reasons for his departure. On April 15, 2025, the Supervisory Board appointed Robert Buchajski as the new President of the Management Board, effective April 16, 2025.
Stalprofil (STF) - Management Board Recommends PLN 0.30 Dividend per Share for 2024
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On April 16, 2025, the Management Board of Stalprofil S.A. proposed distributing PLN 5.25 million of the 2024 net profit as a dividend, translating to PLN 0.30 per share (3.5% yield). The recommendation covers all 17.5 million outstanding shares. The Board also suggested setting the dividend record date as August 20, 2025, with payment scheduled for September 10, 2025. The final decision is subject to approval by the Ordinary General Meeting.
Stalprodukt (STP) - Supreme Administrative Court Upholds PLN 990,000 Fine Against CEO Piotr Janeczek
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Stalprodukt S.A. announced that on April 15, 2025, the Supreme Administrative Court in Warsaw dismissed a cassation appeal by CEO and shareholder Piotr Janeczek, thereby upholding a previous ruling and the final decision of the Polish Financial Supervision Authority (PFSA) from November 2020. The PFSA had imposed a fine of PLN 990,000 on Janeczek for breaching Article 73(2) of the Public Offering Act by failing to launch a mandatory tender offer after exceeding 33% of voting rights in Stalprodukt S.A. in June 2016. The court ruled that the agreement signed on June 30, 2016 with other shareholders did not eliminate Janeczek's individual legal obligation. Janeczek disagrees with the judgment and, having exhausted domestic remedies, plans to file a complaint with the European Court of Human Rights.
Grupa Azoty Puławy (ZAP) - Net Profit Boosted by PLN 200m from Reversal of Impairments, PLN 52m Hit from Deferred Tax Adjustment
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Grupa Azoty Zakłady Azotowe "Puławy" S.A. announced that it will reverse a non-cash impairment loss of approximately PLN 247 million related to fixed assets in CGU Agro, following year-end 2024 impairment tests. The tests showed a strong recovery in asset value in Agro, while CGUs Melamina and Tworzywa reported limited or no cash flows. As a result, shared assets previously allocated to the underperforming units were reassigned to Agro, enabling a reversal of earlier impairments. This reversal is expected to boost net profit by around PLN 200 million, though it will not affect EBITDA or liquidity. Separately, the company will recognize a non-cash reduction of approximately PLN 52 million in deferred tax assets related to expiring SEZ tax reliefs, which will lower net profit for 2024. Final figures are subject to auditor review, with the full-year report due for release on April 24, 2025.
The writer may own shares of the companies mentioned. This communication is for informational purposes only. AI helped us with this. Check important info.