The Polish Deep Value Week – 2025/19
Preliminary Results, New Contract and Quarterly Report
Companies mentioned
· Tesgas (TSG) – Shareholder Agreement Notification (May 2025)
· Izolacja-Jarocin (IZO) – Q1 2025 Results Show Stable Revenue and Improved Profitability Amid Negative Cash Flow
· Feerum (FEE) – New PLN 26.7m Contract Secured for Storage and Distribution Center
· Dębica (DBC) – Preliminary Q1 2025 Results Reflect Post-Fire Recovery
· Bowim (BOW) – Preliminary Q1 2025 Results: Sales and Profit Decline Amid Weak Market Conditions
“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.
Tesgas (TSG) – Shareholder Agreement Notification (May 2025)
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Nationale-Nederlanden Otwarty Fundusz Emerytalny and VALUE Fundusz Inwestycyjny Zamknięty jointly entered into a shareholder agreement concerning Tesgas S.A., aiming to enhance corporate governance. The agreement outlines coordinated actions to convene an Extraordinary General Meeting and elect a Supervisory Board member via separate group voting, with the goal of assigning that member permanent individual supervisory duties. The parties agreed to act jointly in exercising shareholder rights, including proposing agenda items, forming a voting group, nominating a supervisory board member, and deciding on supervisory board structure and compensation. No change in shareholding occurred as a result of the agreement—combined ownership remains at 2,280,309 shares, equal to 20.09% of share capital and 15.18% of voting rights.
Izolacja-Jarocin (IZO) – Q1 2025 Results Show Stable Revenue and Improved Profitability Amid Negative Cash Flow
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Izolacja-Jarocin S.A. reported Q1 2025 results showing net revenue of PLN 6,239k, up slightly from PLN 6,031k in Q1 2024. Net profit rose to PLN 192k versus PLN 63k, driven by stronger operating and gross margins. Despite this, total net cash flow was negative at PLN -563k, mainly due to an outflow of PLN -362k from operations and PLN -147k from investments. Total assets stood at PLN 24,998k and equity rose to PLN 18,587k. The company’s liquidity appears stable, but the negative cash flow may warrant close monitoring if trends persist. No dividend was declared.
Feerum (FEE) – New PLN 26.7m Contract Secured for Storage and Distribution Center
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Feerum S.A. has signed a contract worth PLN 26.7m gross (PLN 21.7m net) with Gospodarstwo Rolne Jegliński for the construction of a storage and distribution facility in Rościszewo Nowe, with completion scheduled by March 9, 2026. Payment will be made in stages, including a 20% advance, 60% in monthly progress payments, and two 10% final tranches. The contract includes a 24-month warranty and limits Feerum’s liability to 5% of the net contract value, excluding lost profits. Terms are standard for the industry.
Dębica (DBC) – Preliminary Q1 2025 Results Reflect Post-Fire Recovery
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Tire Company Dębica S.A. reported estimated Q1 2025 net sales of PLN 749.6m and net profit of PLN 42.9m, benefiting from the restoration of production capacity following the August 2023 fire. The company emphasizes that these figures, subject to finalization in the May 16, 2025 report, should not be viewed as guidance due to ongoing market volatility.
Bowim (BOW) – Preliminary Q1 2025 Results: Sales and Profit Decline Amid Weak Market Conditions
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Bowim S.A. reported preliminary standalone results for Q1 2025, showing net sales of PLN 431.2 million, down PLN 14.6 million year-over-year. Operating profit fell to PLN 3.7 million, a decline of PLN 4.1 million from Q1 2024, while the company posted a net loss of PLN 1.6 million, compared to a net profit of PLN 3.6 million a year earlier. The company attributes the weaker performance to persistently low demand, delayed public investments, and high financing costs that have slowed construction and renovation activity. These factors have prevented recovery in key sectors such as steel and related industries, leading to lower-than-expected margins and financial results. Consolidated group figures for the quarter are not yet available. Final results will be published according to the periodic reporting schedule outlined in current report no. 1/2025 dated January 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.