Bianor raise capital with a share issue

05 August 2024

Stock Exchange Stats

BSE Weekly Gainers & Losers

Market Overview (29 July – 2 August)

The main Bulgarian index SOFIX increased this week by 0.49% to 866.50 points. The broad index BGBX40 increased this week by 0.26% to 170.04 points and BGREIT increased this week to 192.90 points, up by 0.24%.

Corporate News

Smart Organic (SO) – announced that as a result of the latest capital raise with 1,030,999 new shares to a total of 10,310,000, the share of the main shareholder Yani Dragov has decreased from 93.93% to 85.16%.

Doverie Holding (DUH) announced that they had reached an agreement to sell their health insurance business to Generali. In their 2023 report, the insurance line made exactly 1% of the total net revenues so the move is expected to allow the management to concentrate on the more important business lines.

Tchaikapharma (THQM) announced their Q2 consolidated results, where revenues increase 4% YoY to BGN 26.9mln. Their OPEX, however, increased 11.6% to BGN 23.8mln driven by the growth in materials (rising 8.5% to BGN 16.6mln) and personnel expense (rising 43% to BGN 4.5mln). This resulted in PBT dropping 31.8% YoY to BGN 3mln and Net Profit decreasing 34% to BGN 2.8mln.

Korado Bulgaria (KBG) – announced that they will be holding a GSM on 11.09.2024 to make a decision to distribute part of the profit for the first 6 months of 2024. The proposal is for BGN 0.10 per share, representing a 2% dividend yield.

Bianor Holding (BNR) – announced the filing with the regulator for a capital increase by a share issue of new 4,096,711 shares with nominal value of BGN 1.00 each and emission value of BGN 6.00 each. The issue will be considered successful if at least 2,500,000 shares are subscribed and paid.

Economic News

• Producer prices in Bulgaria fell 0.3% year-on-year in June 2024, slowing from a 1.2% decline in the previous month and marking the 15th consecutive month of producer prices deflation, albeit at the lowest decline in over a year. Deflation slowed for electricity, gas, steam, and air conditioning supply (-10.7% vs -14.9% in May 2024), while prices increased at a slower pace for manufacturing (2.6% vs 2.8%) and mining & quarrying (11% vs 14.6%). On a monthly basis, producer prices declined 0.4% in June 2024, following a 2.7% increase in the previous month.Retail sales rose by 3.2% YoY in November, accelerating from 3.1% in the previous month and logging the strongest growth rate since February, as trade increased for food, beverages & tobacco (9% vs 6.8% in October) and non-food products (1.7% vs -0.2%), primarily in non-specialised stores and via order houses or Internet.
• The business confidence indicator dropped to 23 in July 2024, the lowest in seven months, down from a reading of 24.5 in the previous month. Sentiment for the present business situation became slightly less positive (28.7 vs 28.8 in June) while expectations turned significantly more negative for production activity (-3.8 vs 1.6). Moreover, entrepreneurs lowered their expectations concerning the level of export orders (-31 vs -30.5). In addition, sentiments over the upcoming months declined for employment (5 vs 6.3) and the overall business situation (5.5 vs 7.2), while improving for the production activity (12 vs 10.3)

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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