Asseco South Eastern Europe – 1Q19 financial results – simply spectacular
Recently our coverage of equities of Asseco SEE has morphed into a string of upgrades of our financial forecasts for the Company and assessment of its 12M EFV; following the release of robust (significantly surpassing the expectations) set of financial results for 1Q19 and strong backlog data, we are forced to raise our expectations’ bar for the Company yet again. We stay positive on equities of Asseco SEE – both in LT fundamental (Buy) and ST market-relative (Overweight) terms – continuing to view the Company (despite strong ytd rally of the share market price) as one of our top recommended exposures both in the context of TMT sector and the entire WSE investable universe. In our view, the Company’s stock offers: (i) material fundamental undervaluation, (ii) favorable earnings momentum (at least for mid-term; e.g., 2Q19E operating profit seen advancing yoy at c. 35% rate, 2H19E EBIT tentatively expected to grow yoy at a double-digit per cent pace), and (iii) chances for further non-organic shareholder-value creation (takeover of Necomplus believed to have added at least PLN 1 to Asseco SEE’s share intrinsic value).
Asseco South Eastern Europe is engaged in holding operations which involve investments in new IT sector companies in South Eastern Europe and Turkey, as well as management of companies that have been already incorporated into Co. in that region. Co. is also a provider of services and software for voice automation solutions, payment systems and mobile communication systems. Co. is a provider of IT solutions, authentication solutions and online payment settlement systems, while it also delivers and performs maintenance of ATMs and POS terminals, and provides integration and implementation services for IT systems and hardware.
BOS Brokerage, with over 20-year experience, offers brokerage services on the Polish capital market to satisfy numerous needs of institutional and retail investors.
Our comprehensive offer includes brokerage services on both the stock exchange and the forex market as well as brokerage services on the energy market, debt and equity issues, distribution of investment funds and assets management.
BOS Brokerage analytical team belongs to the most appreciated and acclaimed on the market. According to Parkiet daily’s poll (as of January 7, 2019), DM BOŚ equity research team was selected by institutional investors as the third best in Poland. Moreover, the team members won several individual best analysts awards, including Sobiesław Pająk – IT (best analyst), media/telco (ranked 2.), strategy (ranked 4.), Tomasz Rodak – video games (best analyst), overall ranked 5., Łukasz Prokopiuk – chemicals (ranked 2.), mining (ranked 3.), Maciej Wewiórski – real estate (ranked 3.).
In August 2017 Parkiet daily indicated DM BOŚ recommendations as the most accurate over 12 months and according to the Puls Biznesu daily (as of April 11, 2017) DM BOŚ research team was the most prolific on the Polish market and issued the biggest number of recommendations (247) in the years 2014-2016.
The analysts handle over 80 companies listed on the Warsaw Stock Exchange.
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