The Slovenian Statistical Office published its GDP figures for Q1 2023, showing that in real terms, it increased slightly by 0.7% YoY. Further, GDP also increased by 0.6% compared to the fourth quarter of 2022.

In Q1 2023, domestic consumption decreased by 4.4% YoY. However, the decline in domestic consumption occurred due to the change in inventories. The important thing to note is that the final household consumption expenditure grew by 2.1% (contributing the most to the overall GDP growth). Further, looking at the mentioned household consumption, it is worth adding that 2.1% growth is positive, but growth is starting to decline – as the previous quarter noted a 2.6% growth in this category (the quarter before that amounted to 3.3%).

Gross fixed capital formation noted a mid single-digit growth of 6.5% (+5.9% in the previous quarter). As previously mentioned, the changes in inventories had a negative impact on GDP growth. However, the external trade balance contributed by as much as 5.1 p.p. to GDP growth, which completely offset lower domestic expenditure. In total, exports went up by 1.9%, while imports were down 3.8% in Q1. Growth in total exports was driven by higher export of services (+7.9% YoY), while export of goods just slightly increased (+0.2% YoY) and amplified growth in services. Overall, the external trade balance on services was positive for the fourth consecutive quarter, while the external trade balance on goods was positive for the first time in two years. In total, everything abovementioned resulted in 0.7% YoY growth in the total Slovenian GDP.

GDP by expenditures, constant prices, growth rates (%)

Source: SURS

If we were to look at value-added activities at constant prices, construction, Other service activities and IT contributed the most to the total value added. For these activities, growth in the mentioned value added represent a continuation of a positive trend regarding its contribution to the total GDP.

Besides GDP and values added, the Slovenian statistical office also commented on the Slovenian employment rate trend. During Q1, total employment amounted to 1,080,200 persons, which represents an increase of 1.1% compared to the previous quarter. Most new jobs were created in construction and manufacturing.

At the share price before the announcement, this would amount to a DY of 3.45%, for both the regular and preferred shares. The ex-date is set for 29 May 2023.

Yesterday, on the General Assembly of Končar D&ST the dividend proposal for 2023 was approved. Out of the net profit of EUR 22.3m (HRK 168m), EUR 2.23m will be transferred into the statutory reserves, EUR 13will be transferred into the retained earnings, while the remaining amount, EUR 7.03m will be paid out in the form of dividends. This would amount to a payout ratio of 31.5%, and imply a DY of 3.45%, for both the regular and preferred shares.

Končar D&ST further notes that this represents an increase of 50% over the last year’s dividend (EUR 9.19 DPS, HRK 69.2). The ex-date is set for 29 May 2023. Below we provide you with the historical dividends per share and dividend yields of the Company.

It should be noted that Končar D&ST is a member of Končar elektroindustrija Group (KOEI), and is consolidated in the Group’s results. Končar currently holds 67.9% of the shares in the Končar D&ST.

Končar D&ST dividends per share (EUR) and dividend yield (2015 – 2023, %)

Source: Končar D&ST, InterCapital Research

As of April 2023, Fondul’s NAV reached RON 14.31bn, which would translate into a NAV per share of RON 2.6510, a decrease of 10.3% YoY and a 2.2% MoM increase.

According to the latest Fondul Proprietatea’s NAV report (30 April 2023), Fondul reported a total NAV of RON 14.31bn (EUR 2.90bn), which translates into a NAV per share of RON 2.6510 (EUR 0.5372).

Comparing it on a YoY basis, the total NAV recorded a decrease of 10.3%. Nevertheless, compared to February, NAV increased by 2.2%.

Fondul Proprietatea’s portfolio structure still remained focused on the power utility generation sector (75.9% of NAV), Power & Gas supply utilities (7.6%) and Infrastructure (7.4%) with no significant changes in its portfolio structure. This is also why the three most significant holdings, Hidroelectrica, Aeroporturi Bucuresti, and Engie Romania amount to 84% of the total NAV of the Fund. However, most of those come only from Hidroelectrica with 75.9% as the biggest holding. Finally, regarding the whole power utility generation sector, we emphasize that Fondul decreased its exposure to the power utility generation sector by 3.6 p.p. on a monthly basis, which came on the back of a lower share of Hidroelectrica as a percentage to the whole portfolio.

In terms of the Fund’s portfolio structure, unlisted equities accounted for the vast majority of NAV, standing at 93%. However, it should be noted that unlisted equity noted a 3.6 p.p. MoM decrease as a percentage of Fondul’s total portfolio. On the other hand, Net Cash & Receivables amounted to 5.8%, increasing by 3.6 p.p. MoM as Unlisted equities fell. Finally listed equities amount to only 1.2%.

So overall, during April, Fondul increased its cash position on the “cost” of holding a lower amount of its portfolio in unlisted equity. Also, we remind and emphasize that at the start of this year, Fondul liquidated its position in OMV Petrom, which was previously the second biggest holding after Hidroelectrica with 5.6% of the fund’s NAV in the latest data available for November.

Turning our attention toward the share price’s performance, during the month, the Company’s share price noted a slightly negative development with a 1.2% share price decrease, ending the month at RON 2.08 per share. The current discount to NAV per share stands at 24.8%.

Fondul Share Price & NAV per Share

Source: Bloomberg, InterCapital