SHELLY STARTS TRADING IN EUR

TRACE GROUP WINS ANOTHER BIG CONTRACT

22 July 2024

Stock Exchange Stats

Index Close Weekly Change % YTD
SOFIX 864.55 0.08 13.00
BGBX 40 169.84 0.24 7.58
BGREIT 190.93 0.37 0.33
Index P/E EV/S P/BV
SOFIX 7.54 -0.06 1.84
BGBX 40 10.98 0.31 1.85
BGREIT 18.54 n/a 2.31

BSE Weekly Gainers & Losers

Top Gainers Price Change %
PET Petrol AD 0.95 18.75
TIB Telematic Interactive 16.00 7.38
FPP Fairplay Properties 0.92 6.98
MSH M+S Holding 10.70 4.90
SFB Sopharma Buildings 13.10 4.80
Top Losers Price Change %
AROM Aroma 1.00 -27.01
LOMP Lomsko Pivo 0.12 -23.13
ELHM Elhim Iskra 0.80 -13.98
ZHBG Zarneni Hrani 0.12 -7.69
T57 Trace Group 4.62 -7.60

Market Overview (15 July – 19 July)

The main Bulgarian index SOFIX increased this week by 0.08% to 864.55 points. The broad index BGBX40 increased this week by 0.24% to 169.84 points and BGREIT increased this week to 190.93 points, up by 0.37%.

Corporate News

Webit Investment Network (WIN) – announced that their investment iSchool realized for H1 2024 growth of paying members of 746%, leading to YoY growth in sales of more than 3x to reach USD 4.97mln.

Advance Terrafund (ATER) – published their June results. Currently they own 180,275 decares. Of that 172,880 decares is rentable and 84.8% is currently rented out at an average price of BGN 64.85. The growth in rent levels over the last 3 years has had a very positive impact on the funds revenues. Rent has gone up from BGN 41.62 per decare in 2021-2022, to BGN 56.03 in 2022-2023 to BGN 64.85 in 2023-2024.

Shelly Group (SLYG) – their shares started getting traded in EUR on 18.06.2024 at a conversion factor of 1.95583. Their shares were traded in BGN until 17.07.2024. Because of this, the drop in the nominal value of their shares last week represents this change, not a decrease in the underlying value of the company or unforeseen dynamics.

Trace Group (T57) – announced that their joint venture with A.D.Hold, where Trace Group has 40% interest and A.D.Hold 60%, has won the tender by State Agency “Road Infrastructure” for laying horizontal markings on the roads of the republican roads (main roads) on the territory of the country in the South East region, which includes the regions of Burgas, Sliven, Stara Zagora and Yambol. The amount of the contract is for BGN 35mln and the term for completion is 48 months.

Economic News

Bulgaria’s current account surplus widened to EUR 185.3 million in May 2024 from EUR 40.8 million in the corresponding month of the previous year, as the services surplus increased to EUR 539.6 million from EUR 441.8 million. At the same time, the primary income gap shrank to EUR 13.5 million from EUR 257.8 million a year earlier, and the secondary income surplus rose to EUR 134.3 million from EUR 109.9 million. Meanwhile, the goods deficit widened to EUR 475.1 million from EUR 253 million. In January to May, the country recorded a current account surplus of EUR 468.3 million, shifting from a deficit of EUR 397.6 million in the same period last year.

Bulgaria’s inflation rate rose to 2.5% in June 2024 from 2.3% in the previous month. This marked the highest reading since March, as prices increased for food and non-alcoholic beverages (1.5% vs 1% in May), housing & utilities (3.9% vs 3.2%), and restaurants & hotels (7.5% vs 6.8%). At the same time, costs rebounded for recreation & culture (1.3% vs -2.1%). Meanwhile, inflation moderated for alcoholic beverages & tobacco (5.3% vs 6%), clothing & footwear (0.2% vs 0.8%), and transport (4.9% vs 5.3%). On a monthly basis, the CPI fell 0.2%, the same pace as in the previous month.

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

Disclaimer

Guarantees

The analyst (s) responsible for the preparation of this document shall ensure that: (1) they take all necessary care to accurately reflect the information contained in this document; (2) no part of the analyst’s remuneration is, has been or will be linked, directly or indirectly, to the recommendation or opinions expressed in this document.

Financial interest: Sofia International Securities may trade or own the financial instruments specified in this document. Sofia International Securities does not own more than 5% of the financial instruments in circulation, subject to analysis or comment in this document. The analyst (s) may or may not own any shares of the companies.

Disclosure of information

Due care has been taken to ensure the accuracy of the facts cited, the reliability of the sources of information and the clear definition of the assumptions, predictions, forecasts and expected prices in this document. The information presented in this document is based on publicly available information, which is considered reliable, but for which no responsibility is taken for completeness and accuracy. Neither Sofia International Securities nor the company’s employees should be held responsible for the publicly available information used. The opinion expressed in this document may differ from the disclosed views in other departments and divisions of Sofia International Securities or from other employees. Additional information on this document is available upon request. The sources of information in the tables and graphs in this document are calculations by Sofia International Securities, unless otherwise stated.

Risks for investors

This document has been prepared and presented for the purpose of summary and informational purposes only and does not constitute a study within the meaning of Art. 13 of Commission Delegated Directive (EU) 2017/593 of 7 April 2016. The information in this document should not be considered as an offer to buy or sell financial instruments or an independent investment council within the meaning of Directive 2014/65 / EU of The European Parliament and the Council of 15 May 2014, Sofia International Securities AD has not assessed the appropriateness in relation to the financial instruments mentioned in this document. The investment opportunities discussed in this document may not be appropriate for certain investors depending on their investment objectives and time horizon or in the context of their overall financial condition. The risks associated with investing in the financial instruments mentioned in this document are not fully explained. The price or value of the investment may decrease or increase. Securities or investments can lead to losses for the investor. A previous achievement is not a guarantee of future performance. Changes in exchange rates may have an adverse effect on the value, price or return on investment in securities. Sofia International Securities AD assumes no responsibility for losses incurred in connection with investments made on the basis of information contained in this document.

Copyright

The analyzes of Sofia International Securities are the exclusive property of the investment intermediary and any publication, distribution, reprinting and citation of content is possible only after the explicit written consent of the „Research and Analysis“ department of the company. It is not allowed to use the analyzes of the investment intermediary from a third party for commercial purposes.