Mixed Performance Amid Q2 Results

26 August 2024

Stock Exchange Stats

BSE Weekly Gainers & Losers

Market Overview (19 Aug – 23 Aug)

The main Bulgarian index SOFIX increased this week by 0.29% to 869.29 points. The broad index BGBX40 increased this week by 0.09% to 170.60 points and BGREIT increased this week to 199.94 points, up by 1.17%.

Corporate News

Sirma Group (SGH) – announced that they had bought the minority share of 49% of their subsidiary “S&G Technology Services” LTD (UK). With that, the company is now fully owned by Sirma.

Stara Planina Hold (SPH) published results as of 31.07.2024 where sales drop 33.42% to BGN 160mln. The greatest contributor is M+S Hydraulic, responsible for over 52% of the holding’s sales, whose sales dropped 43.64%. The second largest company – Hydraulic Elements and Systems – responsible for over 28% of the total sales marked a 22.42% decline and the third one, Elhim Iskra, bringing nearly 14% of all revenues dropped 34.43%. It will be interesting to follow how SPH weathers the storm as their projections in 2023 for 2024 were for drops between 22% and 29% as it seems that the results are worse.

Agria Group Holding (AGH) announced results for the first 6 months, where sales drop nearly 10% to BGN 301mln. The drop is equally spread by decreases in the revenues from grains and revenues from oils. This, together with the doubling of the financial expenses lead to the company recording a Net Loss of BGN 4.2mln from BGN 3.4mln profit last year. The increase in financial expenses stemmed from the increase in leverage. Short term liabilities marked a 26% to BGN 281mln, 80% of which is interest bearing debt to banks. Long term liabilities increased 4.6% to BGN 81mln and leasing nearly doubled to BGN 22.5mln.

Shelly Group (SGH) – announced that they are undergoing management restructuring. The executive director Wolfgang Kirsch will concentrate on strategic corporate development, communication with capital markets and operational development. The management for the main pillar of the revenues, the DACH region, will be entrusted to Karsten Sommer, a leading expert in the consumer electronics sector.

Sopharma (SFA) – announced results till end of July 2024, where sales decrease 7% as a result of the 11% decrease in international sales and 6% growth in domestic market.

They also announced that starting 26 Aug 2024 they will start paying the 2023 dividend of BGN 0.09 per share as voted on the GSM 28.06.2024.

Trace Group (T57) – announced a new contract for their joint venture with AB AD, where they hold 50% each for 11.612km road construction project in the amount of BGN 19.5mln.

Economic News

• No major economic events this week.

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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