Bulgarian Stock Exchange Weekly Bulletin – 2024-07-29

BACB bid to acquire Tokuda approved

29 July 2024

Stock Exchange Stats

BSE Weekly Gainers & Losers

Market Overview (22 July – 26 July)

The main Bulgarian index SOFIX decreased this week by 0.27% to 862.25 points. The broad index BGBX40 decreased this week by 0.14% to 169.60 points and BGREIT increased this week to 192.44 points, up by 0.79%.

Corporate News

Hydraulic Elements & Systems (HES) – published their Q2 results. As announced in 2023, the adverse macroeconomic effects took its toll and revenues were down 22.4% YoY to BGN 38.7mln. This affected the Net Income, which went down 30.1% to BGN 2.4mln.

M&S Hydraulic (MSH) – also published Q2 results. Unlike its sister entity in the Stara Planina Hold structure, they were not able to weather the negative economic developments so well. Revenues fell 42.7% to BGN 72.4mln. The smaller drops in OPEX (43.2% to BGN 33.3mln) and the other associated expenses lead to Net Profit becoming nearly a third of what it was last year – BGN 7.4mln.

BREF (BREF) – announced they will be having a webinar on 06.08.2024 from 14:00 EET to show the results in Q2 and answer questions of the public regarding the portfolio and plans. The webinar can be attended at https://meetings.nit.bg/rooms/zh9-kzv-jvb-ssn/join .

Bulgarian Stock Exchange (BSE) – announced dividend for 2023 in the amount of BGN 0.296 per share representing a dividend yield of 3.97%. They also announced that their shares are accepted on the “Premium” share of the BSE main market.

Bulgarian American Credit Bank (BACB) – announced that their bid to acquire 99.94% of the capital of Tokuda Bank AD was approved by the Commission on Protection of Competition – the antitrust regulator.

Shelly Group (SLYG) – announced that its board of director has approved plan to turn Shelly Group AD to a European entity “SE”, registered in Bulgaria. The whole plan and details are available on their website under “Corporate Governance”.

Eurohold Bulgaria (EUBG) – published their 2023 consolidated results. The main part of their business, energy trading, which comprises over 83% of operational revenues, marked a 35% drop (to BGN 2,320mln) due to the lower purchasing prices by the Bulgarian Energy Stock Exchange in 2023 compared to 2022. Insurance revenues dropped just 1.5% to BGN 466mln as a result of negative net value of purchased reinsurance contracts despite the fact that the business grew by 2%. In the same time, energy expenses dropped 42.5% and insurance expenses marked a 17% decline, which lead to Gross Profit declining just 2.4%. EBITDA drops 13.1% to BGN 209mln, while EBT went to negative territory to BGN 25mln (from positive BGN 30.4mln) as well as Net Profit to a negative BGN 45mln (from positive 13mln). The net effect from the sale of businesses in 2023, however, had a positive overall impact, which shot the overall Net Profit to BGN 80mn from a loss of BGN 1.9mln the year before.

Economic News

The number of tourist arrivals in Bulgaria grew by 5.8% year-on-year to 1.473 million in June 2024, following a 6.6% rise in the previous month. An increase was registered in trips with holiday and recreation purposes (11.2%) and other purposes (1%), while those for professional purposes decreased (-3%). The EU constituted 49.1% of the total visits to Bulgaria, with Romania (30.7%) being the leading contributor, followed by Germany (16.9%), Greece (12.4%), and Poland (11.9%). Meanwhile, arrivals from other European countries accounted for 39.8% of the total, mainly from Ukraine (36.8%).

Ivaylo Valchev
Equity Analyst
Tel.: +359 2 937 9862
e-mail: valchev@sis.bg

Svetozar Abrashev
Senior Managing Partner
Tel.: +359 2 937 9869
e-mail: abrashev@sis.bg

Sofia International Securities
Sofia 1000,
140 G. S. Rakovski Str.
Tel.: + 359 2 937 98 65
e-mail: info@sis.bg

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