Report
Sašo Stanovnik

Slovenian Weekly Report 23.7.2018-27.7.2018

  • Earnings season started with release schedule as stated below:
    • Telekom 20.07.2018
    • Krka 26.07.2018
    • Zavarovalnica Triglav 17.08.2018     
    • Petrol 23.08.2018    
    • Intereuropa 30.08.2018       
    • Luka Koper 31.08.2018         
    • Pozavarovalnica Sava 31.08.2018     
    • Unior 31.08.2018    
    • Cinkarna Celje 12.09.2018   
  • Please note that Cinkarna Celje and Petrol coverage is temporarily suspended while Gorenje (extensive) coverage has ceased with sell rating as Hisense takeover attempt succeeded in the past few months. Namely Hisense now has a 95.4% stake in Gorenje with 90% being a squeeze out threshold.
  • We expect little surprise from 2Q18 earnings releases as positive dynamic from past few quarters should continue. Namely macro data (domestic, export) is relatively unchanged. Even more so, IMAD noted some weakness in 1Q18 disappeared in 2Q18.
  • For now Krka publication was in-line with strong preview disclosed at their shareholder assembly however Telekom Slovenije results were only slightly below our expectations.

 Commentary on political situation in Slovenia is found on page 2.

 Please note the next Weekly is scheduled for 17th August 2018.

Underlyings
GORENJE gospodinjski aparati dd

Gorenje dd is a Slovenia-based company engaged in the production and sale of household appliances. The Company operates through three business segments: Home, producing and selling products and services for home, such as major domestic appliances (MDA), small domestic appliances (SDA), heating, ventilation, air conditioning (HVAC) and kitchen furniture; Ecology, providing ecology-related services; and Other, with such activities as tool-making, engineering, hotels and hospitality services, trade, and design services. The Company covers the global markets with a portfolio of ten brands: Gorenje, Gorenje+, Korting, Sidex, Mora, Atag, Etna, Pelgrim, Asko and Upo. As of December 31, 2011, the Company was the parent company of the Gorenje Group, which consisted of numerous companies in such countries as Slovenia, Austria, Germany, Italy, France, Spain, the United Kingdom, Denmark, Sweden,, Norway, the Czech Republic, Slovakia, Hungary, Poland, Bulgaria and Croatia, among others.

KRKA d.d.

Krka is a public generic pharmaceutical company based in Slovenia. Co. is engaged in the development, production, sale and marketing of human health products (prescription and selfmedication pharmaceuticals and cosmetics), animal health products and health resort and tourist services. Co. focuses on a range of generic prescription pharmaceuticals, which are marketed under Co.'s own brands. Co. offers customers in over 70 countries a broad range of prescription pharmaceuticals, self-medication products and animal health and cosmetic products. Co.'s activities are supplemented by health resort and tourist services of Terme Krka.

Salus Ljubljana

Salus Ljubljana dd is a Slovenia-based company engaged in the wholesale and distribution of medical products. The Company's portfolio includes pharmaceuticals, medical devices, medical supplies, food supplements, cosmetic products and other health products. The Company's core clients are pharmacies, hospitals and health centers from both Slovenia and abroad. Moreover, Salus Ljubljana dd offers the products to its business partners through the Internet store. The Company also provides additional services related to the registration of medicines and the distribution and storage of pharmaceuticals and other medical products.

Telekom Slovenije

Telekom Slovenije dd is a Slovenia-based company engaged in the provision of telecommunication services. The Company provides fixed and mobile communications, system integration and cloud computing, construction and maintenance of telecommunication networks, digital content and services, multimedia, digital advertising. It operates under the brands Mobitel and SiOL. The Company's services and products include business bundles, Centreks, Moneta, M vrata, among others. The Company is active in Slovenia, Kosovo, Macedonia, Bosnia and Herzegovina, Croatia, Montenegro and Gibraltar. On November 6, 2013, the Company concluded the transaction of transferring a 100% stake in the capital of PRIMO Communications SHPK to AD-Trade SHPK, Albania. The Company's major shareholder is Slovenska odskodninska druzba dd with a stake of 72.75%.

Provider
Alta Invest
Alta Invest

ALTA Invest, investicijske storitve, d.d., (ALTA Invest, investment services, Inc.) is a part of ALTA Group, the biggest financial non-banking group in Slovenia. ALTA Invest has around 28% market share on the domestic Ljubljana Stock Exchange and has more than EUR 95m of assets under management.

Our trading advantage is our execution of large trading blocks with low impact on the market. We offer trading on several platforms on numerous markets, with a wide variety of financial instruments. Our advantage is also a research department, which is both sell side and buy side and has the far most extensive and regular coverage of domestic companies. We cover 9 companies on Ljubljana Stock Exchange, which is around 90% of Mcap on LJSE – and here we are practically the only local broker providing this kind of extensive and regular coverage for Slovenian companies.

A part of ALTA Group are ALTA Skladi, a mutual fund asset management company with roughly EUR 260m of asset under management. ALTA Group is also extensively involved in corporate finance projects and raised considerable assets (fixed income and equity) in the last two years for several companies.

Analysts
Sašo Stanovnik

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