The deadline for the submission of non-binding bids has been extended from 23 August to 6 September 2019.

The Government of the Republic of Serbia has announced that the deadline for the submission of non-binding bids for the purchase of the state’s stake in Komercijalna Bank has been extended from 23 August to 6 September 2019. The reason for the mentioned postponement is that certain potential purchasers need more time to examine the documentation of the bank’s operations.

As a reminder, the Government of the Republic of Serbia opened the public invitation on 31 May, while Serbia’s officials expect that the procedure of the sale is to be completed by the end of 2019. At the moment Government of Serbia holds a 50.6% stake in Komercijalna Banka after it purchased shares back from DEG and Swedfund.

Note that at the current share price, Komercijalna banka is traded at P/B 0.76 of and P/E 12.71

In H1, the company observed an increase in revenues of 20% YoY, decrease in EBITDA of 1.3% and a decrease in net profit of 8.8%.

As Impol Seval published their H1 2019 report, we are bringing you key takes from it. According to the report, the company recorded an increase in revenue of EUR 60.87m, representing an increase of 20% YoY. The company attributes this increase to the achieved production results, favorable market trends in the area of procurement of metals and a stable (Dinar) exchange rate.

Of the total revenues, the foreign market accounts for 94%, while 96% of the company’s production relates to exports to mostly Germany, USA, Russia and Italy.  

In H1 Impol Seval produced 32,012 tons of aluminum products, which represents an increase of 3.7% YoY, but a 3.7% decrease compared to the planned production.

Turning our attention to the operating expenses, in H1 they amounted to EUR 57.6m, which represents a 22% YoY increase. The mentioned increase came mostly due to the rise in changes in inventories of work in progress and finished goods by EUR 4.2m and an increase in material costs by EUR 1.4m.

As a result of the higher operating expenses, EBITDA observed a slight decrease of 1.3% YoY, amounting to EUR 5.12m.

In H1, the company’s EBIT amounted to EUR 3.3m, representing a decrease of 6% YoY, while net profit amounted to EUR 3.2m (-8.8% YoY)

Impol Seval Performance (H1 2019 vs H1 2018) (EUR m)

In H1 the company observed an increase in operating revenues of 33% YoY, increase in EBITDA of 24% and a decrease in net profit of 2%.

As Messer Tehnogas published their H1 2019 report, we are bringing you key takes from it. According to the report, the company recorded sales of RSD 6.04bn, which is an increase of 31% YoY. Of the total sales, 87.5% was recorded on the domestic market. Meanwhile operating revenues amounted to RSD 6.21bn, representing an increase of 33%. Note that the company is targeting operating revenues for 2019 to be RSD 8.2bn.

When observing operating expenses, they increased by 37.8% YoY, amounting to RSD 4.77bn.

Moving further down the P&L, the company observed an increase in EBITDA of 24% YoY, amounting to RSD 2.1bn, as a result of a strong revenue growth. EBIT observed an increase of 18.4%, amounting to RSD 1.44bn.

In H1, Messer Tehnogas recorded a net financial gain of RSD 13.4m, which is an increase by RSD 3.5m.

Although the company observed a solid performance down the P&L, they observed a decrease in net profit of 2% YoY, amounting to RSD 1.14bn, which came as a result of higher taxes (RSD 167.3m compared to RSD 7.8m in H1 2018).