The Polish Deep Value Week – 2025/18
A Number of New Reports and updated outlooks
Companies mentioned
· COMPREMUM S.A. (CPR) – Preliminary 2024 Financial Results and Write-Downs & Nationale-Nederlanden PTE S.A. – Notification of Decrease in Shareholding
· FEERUM S.A. (FEE) - Reports Consolidated Financial Results for 2024 & Signs Contract for Construction of Storage and Distribution Center
· HYDROTOR S.A. (HDR) - Reports 2024 Consolidated Annual Results
· Izostal S.A. (IZS) - Reports Preliminary Q1 2025 Financial Results
· Lena Lighting (LEN) - Reports 2024 Consolidated Financial Results & Publishes Preliminary Financial Results for Q1 2025
· Remak-Energomontaż (RMK) - Reports Q1 2025 Results
· Stalprofil (STF) - Reports Preliminary Q1 2025 Results
· Stalprodukt (STP) - Reports Consolidated FY2024 Results
“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.
COMPREMUM S.A. (CPR) – Preliminary 2024 Financial Results and Write-Downs & Nationale-Nederlanden PTE S.A. – Notification of Decrease in Shareholding
P/TB 0.17 │ URL
On April 29, 2025, COMPREMUM S.A. announced significant impairments and preliminary results for FY 2024. The company reviewed its contract budget for a major project with PKP PLK, leading to a PLN -33.4m one-off, non-cash negative adjustment. Additional impairments totaling PLN 19.9m were booked: PLN 10.8m for doubtful receivables, PLN 7.7m for obsolete materials and WIP, and PLN 1.3m for investment properties. Consolidated net sales dropped sharply to PLN 104.5m (from PLN 313.8m). EBITDA was PLN -38.8m (FY2023: PLN +42.2m) and net loss widened to PLN -46.5m (from profit of PLN +22.5m). Cash declined to PLN 0.4m and equity fell to PLN 190.0m. The company cited ongoing but nearly concluded mediation on the key PKP PLK project. All impacts are deemed one-off and non-cash.
On April 30, 2025, Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. notified that, following sales of Compremum S.A. shares on April 23, 2025, the combined holdings of its managed funds decreased by 2% of voting rights compared to the previous disclosure. After the transaction, the funds hold 6,096,382 shares, representing 12.51% of total voting rights (down from 12.63%) and 13.60% of share capital (down from 13.72%).
FEERUM S.A. (FEE) - Reports Consolidated Financial Results for 2024 & Signs Contract for Construction of Storage and Distribution Center
FEERUM S.A. has released its consolidated financial results for the year ending December 31, 2024. The company reported sales revenue of PLN 75.5 million, an increase from PLN 63.3 million in 2023. Despite the higher revenue, FEERUM posted an operating loss of PLN 1.4 million, down from an operating profit of PLN 2.9 million the previous year. The loss before tax widened to PLN 2.6 million compared to PLN 0.6 million in 2023, while the net loss increased to PLN 2.1 million from PLN 0.7 million. Earnings per share stood at negative PLN 0.22. Net cash from operating activities improved significantly to PLN 15.3 million from PLN 10.3 million, though the company recorded negative cash flows from investing and financing activities of PLN 0.5 million and PLN 12.9 million, respectively. Total assets declined to PLN 142.7 million from PLN 152.3 million, while equity decreased slightly to PLN 113.5 million from PLN 115.6 million. The company’s results reflect ongoing challenges in profitability despite increased revenues and positive operational cash flow, highlighting potential risks related to sustained losses and financing requirements.
FEERUM S.A. announced that on May 5, 2025, it signed a contract with Gospodarstwo Rolne Jegliński sp. z o.o. for the construction of a storage and distribution center, including technical infrastructure, to be located in Rościszewo Nowe. The facility is scheduled for completion by March 9, 2026. The total gross value of the contract is PLN 26.7 million, with payment structured as a 20% advance, 60% based on monthly progress, 10% upon provision of documentation necessary for facility acceptance, and 10% after final acceptance. FEERUM will provide a 24-month warranty covering both the construction work and installed equipment. The contract includes standard clauses for withdrawal rights and limits the Issuer’s liability for damages to 5% of the net contract value, excluding liability for lost profits. The deal strengthens FEERUM’s order backlog and revenue visibility for the coming year but involves typical execution risks related to construction projects.
HYDROTOR S.A. (HDR) - Reports 2024 Consolidated Annual Results
P/TB 0.48 │ URL
HYDROTOR S.A. has published its consolidated annual report for 2024, revealing a decline in financial performance compared to the previous year. Net revenues amounted to PLN 110.0 million, down from PLN 125.7 million in 2023. The company posted an operating loss of PLN -11.8 million and a net loss of PLN -11.7 million, both significantly higher than the losses recorded in 2023. EBITDA fell sharply to PLN 0.8 million from PLN 10.5 million. Despite the weak earnings, total assets remained stable at PLN 184.4 million, with equity capital at PLN 117.4 million. Net cash flow was slightly positive at PLN 0.76 million, supported by operating cash flow of PLN 4.4 million. The company’s liabilities remained nearly unchanged at PLN 67.0 million. The Management Board did not indicate any going concern risks but the significant deterioration in profitability and reduced cash flow from financing activities highlight ongoing business challenges.
Izostal S.A. (IZS) - Reports Preliminary Q1 2025 Financial Results
P/TB 0.38 │ URL
Izostal S.A. has released its preliminary estimated financial results for the first quarter of 2025, indicating a strong year-over-year growth. Sales revenue doubled to PLN 305.4 million compared to PLN 152.8 million in Q1 2024. Gross profit from sales increased by 84% to PLN 25.6 million, while EBITDA rose by 26% to PLN 11.5 million. Net profit slightly improved by 2% to PLN 3.2 million. The revenue growth was mainly driven by the execution of large orders secured in 2024 for the supply of insulated pipes to OGP Gaz-System S.A. and Ferrum S.A., particularly for the construction of the onshore section of the FSRU regasification terminal in the Gulf of Gdańsk. Despite higher sales costs and increased interest expenses due to high financing needs and prevailing interest rates, the company maintained profitability. The preliminary results include the market valuation of inventory as of March 31, 2025. The final Q1 2025 report is scheduled for release on May 15, 2025.
Lena Lighting (LEN) - Reports 2024 Consolidated Financial Results & Publishes Preliminary Financial Results for Q1 2025
Lena Lighting S.A. has published its financial results for 2024, showing a decline in key metrics compared to 2023. Net sales revenue dropped to PLN 136.9 million from PLN 166.6 million, reflecting lower demand or sales volume. Operating profit decreased significantly to PLN 3.6 million from PLN 12.2 million, and net profit fell to PLN 2.5 million from PLN 9.9 million. Cash flow from operating activities also declined to PLN 8.8 million from PLN 22.3 million, while net cash flow turned negative at PLN -1.7 million compared to a positive PLN 2.6 million in the previous year. Total assets slightly decreased to PLN 133.1 million from PLN 139.9 million, and equity stood at PLN 110.2 million, marginally down from PLN 112.7 million. Profit per share dropped to PLN 0.10 from PLN 0.40. The company proposed a dividend of PLN 0.10 per share, down from PLN 0.20 the year before. The financial results reflect a challenging year with reduced profitability and cash generation.
Lena Lighting S.A. announced preliminary standalone and consolidated financial results for Q1 2025. Standalone net sales reached PLN 32.8 million, slightly down 0.65% year-on-year, while consolidated sales were PLN 33.1 million, a 0.82% decrease. Despite lower revenues, gross profit on sales improved marginally, but operating profit and net profit declined sharply. Standalone net profit fell by 84% to PLN 59 thousand, and consolidated net profit decreased by 82% to PLN 94 thousand, mainly due to reduced operating income. The company attributes the lower profitability to operational challenges but expects a stronger performance in the first half of 2025 compared to the previous year.
Remak-Energomontaż (RMK) - Reports Q1 2025 Results
P/TB 0.53 │ URL
Remak-Energomontaż S.A. reported its financial results for Q1 2025. Net revenues amounted to PLN 40.2 million, a slight decrease from PLN 42.5 million in Q1 2024. Operating profit improved significantly to PLN 1.4 million from PLN 0.4 million. However, net profit declined to PLN 113 thousand compared to PLN 2.19 million a year earlier, mainly due to higher costs despite better operating performance. Cash flow from operating activities remained negative at PLN -3.9 million, though improved compared to Q1 2024. The company reported total assets of PLN 170.3 million and equity of PLN 76.2 million, with book value per share stable at PLN 25.39. Despite lower net profit, the company maintained a solid equity position and improved operating results year-on-year.
Stalprofil (STF) - Reports Preliminary Q1 2025 Results
P/TB 0.31 │ URL
Stalprofil S.A. announced preliminary financial results for Q1 2025, reporting a 38% year-on-year increase in standalone sales revenue to PLN 278.7 million. However, despite higher revenues, the company posted a net loss of PLN 0.8 million compared to a profit of PLN 3.0 million in Q1 2024. The negative result was mainly due to weak market conditions in the steel distribution sector, where low demand and intensified competition led to falling steel prices and shrinking margins. The average price of key products, such as the HEB 200 profile, declined by 3.2% year-on-year. On the positive side, the infrastructure segment, particularly gas pipeline projects, contributed positively, including work on a major FSRU terminal contract valued at over PLN 288 million. The diversified business strategy, spanning steel trade, steel structure production, anti-corrosion insulation, and gas pipeline construction, helped mitigate challenges in the steel market. At the group level, estimated Q1 2025 consolidated revenue reached PLN 573.3 million, with a net profit of PLN 2.45 million. Results reflect the impact of impairments and provisions recognized by the company.
Stalprodukt (STP) - Reports Consolidated FY2024 Results
P/TB 0.40 │ URL
Stalprodukt S.A. released its consolidated financial results for 2024, reporting net revenues of PLN 3,834m, down 17% from PLN 4,610m in 2023. Operating profit declined sharply to PLN 30.5m from PLN 109.2m, while net profit attributable to shareholders fell to PLN 30.1m from PLN 88.4m. Net cash from operating activities decreased significantly to PLN 245.7m from PLN 750.1m. Despite lower profitability, the company maintained a strong balance sheet, with total assets of PLN 4,908m and equity of PLN 3,782m at year-end. Stalprodukt declared a dividend of PLN 6.00 per share for 2024, compared to PLN 15.00 for 2023. The decline in results reflects weaker market conditions and lower profitability across key segments, though the company continued to invest and maintain financial stability.
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