Since most companies in the region have published their FY 2018 financial reports, we decided check what impact did the results have on the company’s share prices. To do so we observed the price performance recorded since the beginning of the year until the end of February.
Croatia
Koncar recorded the largest share price increase in Croatia, thus far, with the company’s share ending February up 15%. In second place comes ZABA who, along with a set of nice results, recently announced a dividend of HRK 5.79 DPS which translates to a dividend yield of 9%. Overall the strongest performers on the Croatian market thus far have been industrial companies and companies which came out with a higher than anticipated dividend proposals (e.g. HT). Meanwhile last year’s top performers Podravka and Atlantic Grupa recorded a growth of 2% and 3%, respectively. On the flip side investor seem less keen on the tourism sector with Maistra and Arena Hospitality posting a flattish share price performance, while Valamar feel 8% since the beginning of the year.
CROBEX Components Share Price Performance (%)
Source: Bloomberg, InterCapital Research
Slovenia
Although only one Slovenian company has released their financial results for 2018 thus far, almost all companies ended February in the green. Leading the list is the KD Group whose share price went up 21% since the begging of the year. As a reminder, KD Group sold their stake in Adriatic Slovenica to the Generali Group last year for EUR 245m. Upon the receiving all necessary approvals the deal was finalized in mid-February 2019. Telekom Slovenije comes in second place with the company’s share up 10% after they announced the sale of their share in Blicnet. Although the amount for which they sold their share is still unknown, it was announced by the company that it will significantly exceeds its book value of EUR 16m. Meanwhile the recently IPOed NLB bank continues to record a share price increase with their share price up 3% YTD and 23% up since the public offering. On the flip side Krka is the only company to end the observed period in the red, however as the company’s share price is down only 1% there is no need for concern.
SBITOP Components Share Price Performance (%)
Source: Bloomberg, InterCapital Research
Serbia
Sojaprotein’s share price soared 28% YTD on the back of a takeover bid issued by the Victoria Group for the remaining 31.82% of the company. In second place comes Komercijalna Banka which has recently filled headlines as a candidate for privatization. According to the media, a tender for the bank’s privatization can be expected in May or June of 2019. On the flip side, the share price of the Belgrade Airport has decreased 60% as the ex-date for the company’s lucrative dividend has past.
BELEX15 Components Share Price Performance (%)
Source: Bloomberg, InterCapital Research
Bulgaria
Bulgaria recorded the worst performance in the observed period with the majority of shares ending the period in the red. An exception would of course be the CB Central Cooperative Bank whose share price went up 23% since the begging of the year. On the flip side, Albena led the laggards with a 17% decrease in share price value after the company posted a worsened bottom line result.
SOFIX Components Share Price Performance (%)
Source: Bloomberg, InterCapital Research
Romania
After most Romanian companies ended 2018 in the red it seems that the improved outlook regarding the newly introduced tax legislation, coupled with solid financial results, has added some confidence to investors. The best performing companies in the observed period were Nuclearelectrica and OMV Petrom who both recorded improved results on all lines, despite the additional tax burden. Furthermore, OMV Petrom also proposed a dividend of RON 0.027 per share to sweeten up the share a bit more. As a result, both shares have seen a 14% increase in value since the begging of the year. Following closely behind is Purcari, whose strong FY 2018 results (net profit +58% YoY) resulted in a 13% YTD increase in share price value. On the flip side, Banca Transilvania led the laggards as high tax expenses left the bank’s bottom line flattish, despite improvements seen on the top line.
