Yesterday Valamar Riveira and Arena Hospitality Group recorded a sharp share price increases of 9.87% and 5.93%, respectively.
Yesterday, most Croatian blue chips ended a trading day in green with CROBEX10 and CROBEXprime recording an increase of 1.67% and 3.44% respectively. Such a result could be attributed to a positive sentiment regarding Covid-19 not only on a regional level, but on a global level as well.
YTD Daily Share Price Change of RIVP (%)
The positive sentiment was particularly reflected on the share prices of Croatian tourism companies Valamar Riviera and Arena Hospitality Group, which recorded an increase of 9.87% and 5.93%, respectively. Note that the last time Valamar recorded such a high daily increase was on 13 March 2020 when the share recorded a 10.7% increase after plunging 14.2% the day before. At the current share price Valamar is traded at a trailing P/E of 14 and EV/EBITDA of 8.3, while Arena Hospitality Group is traded at a P/E of 8.9 and EV/EBITDA of 8.8.
YTD Daily Share Price Change of ARNT (%)
As a reminder, last week Croatia observed further relaxation of measures regarding Covid-19 restrictions, with many companies opening back for business. Besides that, Croatia has fully opened its boarders to all foreign tourist after more than a month of lockdown. It is worth noting that the foreigners arriving in Croatia will not need to go through a period of self-isolation upon the arrival.
In April, due to the lockdown, Croatia has witnessed extremely low figures when it comes to foreign arrivals. To put things into perspective, in April Croatia observed 2,349 arrivals compared to 2.87m in the same month last year. We are eager to see how will the relaxation of measures impact tourist arrivals in the following months.
In the first 4 months GWPs slightly declined by 0.3% YoY. GWPs in non-life insurances grew 4.7% YoY, while life insurance decreased by 12.5% YoY.
Yesterday, Croatian Insurance Bureau published the GWP development in April 2020.
Since the beginning of the year, GWP’s observed a slight decline of 0.3% compared to the same period last year. The total amount of GWPs collected reached HRK 3.95bn (includes insurers located in Croatia and insurers operating in Croatia but based in another EU country). The slight decrease came on the back of the life segment which observed a strong decline of 12.5% YoY to HRK 998.6m. Meanwhile, non-life segment which traditionally accounts for the biggest portion of total GWPs, recorded a solid increase of 4.7% YoY.
When observing solely April, GWPs recorded a strong decrease of 14.7% to HRK 830.5m. Such a result came on the back of a decrease of both life (-35.5%) and non-life segment (-5.7%). This does not come as a surprise given that the country was under a lockdown for whole month due to the Covid-19 pandemic.
When observing GWPs by structure since the beginning of the year insurance against civil liability in respect of the use of motor vehicles (which accounts for 20.6% of GWPs) recorded an increase of 5.4% YoY. Next, vehicle insurance (casco policy) which accounts for 11.5% of total GWPs recorded a strong increase of 6.5%. Health insurance observed also a solid YTD performance of 3.94%.
Croatia Osiguranje accounted for 27.1% of the market, showing a 2.2 p.p. YoY decrease.
PSA Group has started production at almost all production sites with which AD Plastik Group cooperates.
AD Plastik published an announcement on the Zagreb Stock Exchange announcing that their customer PSA Group has started production at almost all production sites with which AD Plastik Group cooperates.
Production sites in France, which are most important for the Group, the factory in Slovakia and most factories in Spain have continued their production, as well as the production site in Russia. Initially production at all sites will take place with reduced capacities and capacities of our factories will adapt accordingly.
To read more about AD Plastik click here.