Report
Research Team

Focus: upgrading to BUY on Erste Bank, with a higher EUR 40.5 PT; Tatneft’s 2Q18 results – stronger earnings, although higher capex is a small concern; Bank of Cyprus – positive news from NPE sale; Eurocash’s 2Q18 results

HEADLINES:
• Erste Bank: a penny saved is a penny earned (upgraded to BUY)
• Tatneft: 2Q18 results - stronger earnings, although higher capex is a small concern
• Bank of Cyprus: positive news from NPE sale
• Eurocash: 2Q18 results in line with the consensus NEUTRAL
• LiveChat Software: 1Q18-19 EBITDA beat consensus by 4.4%, due mainly to ARPU growth POSITIVE
• Emlak Konut: to sell units in instalments at sub-market rates to boost nation's housing market NEGATIVE
• Prime Car Management: 2Q18 - very weak set of results, negative remarketing margin NEGATIVE
• Medicalgorithmics: weak 2Q18, miss vs. expectations on one-off NEGATIVE
• PKO BP: key takeaways from 2Q18 meeting NEUTRAL
• Famur: signs contract for roadheaders lease with PGG NEUTRAL
• EME Strategy: Polish government adopts Employee Capital Programmes bill draft NEUTRAL
• Polish telcos: Vectra interested in acquiring Multimedia NEUTRAL
• Unipetrol: squeeze-out of minorities approved, as expected NEUTRAL
Underlyings
Bank of Cyprus PCL

Emlak Konut Gayrimenkul Yatirim Ortakligi A.g.

Emlak Konut Gayrimenkul Yatirim Ortakligi AS (Emlak Konut) is a Turkey-based real estate investment trust. It is engaged in coordinating and executing real estate property projects mostly housing, besides, commercial units, educational units, social facilities, and all related aspects, controlling and building audit services of the ongoing projects, marketing and selling the finished housing. The ultimate parent and ultimate controlling party of the Company is T.C. Basbakanlik Toplu Konut Idaresi Baskanligi (the Housing Development Administration of Turkey, TOKI). The Company's projects include Agaoglu My Towerland, Alemdag Emlak Konutlari, Varyap Meridian, Mavisehir Modern, Spradon Quartz and Gebze Emlak Konutlari.

Erste Group Bank AG

Erste Group is a financial services provider based in Austria. As of Dec 31 2015, Co.'s total assets amounted to Euro199,743 million and the number of customers was approximately 16.5 million. Co.'s key business is the retail business, covering the entire spectrum from lending, deposit and investment products to current accounts and credit cards. In addition to providing financial services to private individuals, Co.'s core activities also include advisory services and support for corporate clients in financing, investment and access to international capital markets, public sector funding and interbank market operations.

Eurocash S.A.

Eurocash, through its subsidiaries, is engaged in the distribution of food products, household chemicals, alcohol, and tobacco products (fast moving consumer goods). Through a range of distribution formats, Co. and its subsidiaries focus its business activities on the wholesale distribution to customers across the wholesale market segments, in particular, to stores throughout Poland such as retail stores, convenience stores at petrol stations, restaurants, hotels and cafeterias. Co. and its subsidiaries operate a range of distribution formats focused on supplying independent stores in Poland, which primarily include: Cash and Carry, Franchise Systems, and Distribution.

Famur SA

FAMUR SA is a Poland-based manufacturer of mining equipment and machinery. The main area of the Company's operations is manufacture of automated longwall systems enabling the exploitation of coal. The Company also specializes in design and production of equipment for underground mines and open pits, as well as bulk material handling equipment and machines for coal preparation plants. The Company's products portfolio includes electric and hydraulic shearers, roof support, hydraulic control system, conveyors and crushers. FAMUR SA is also engaged in the development of information technology solutions and management system for coal industry. The Company operates through subsidiaries, based in Poland, Germany and the Russian Federation. The Company's major shareholder was TDJ SA, with a stake 71.28%. On November 27, 2014 the Company acquired 76,69% of stake in FAMAK SA.

Livechat Software SA

Livechat Software SA is a Poland-based company engaged in the software industry. The Company is a producer and global provider of software as a service (SaaS) LiveChat, communication software for business. LiveChat enables fast and intuitive communication between company's employees and customers visiting corporate Website. The application also tracks customers' activity on a Website. The Company produces and distributes software for business-to-consumer (B2C) and business-to-business (B2B) communication. Its product portfolio includes three types of LiveChat plans: Solo, dedicated to single user and offering such features as unlimited chats, ticketing system, enhanced security and basic reporting; Team, for numerous teams that additionally includes chat routing and groups creation; and Enterprise, for companies that, additionally to previous ones, provides advanced reporting, work scheduler and unlimited visits on a Website.

Medicalgorithmics SA

Medicalgorithmics SA is a Poland-based company engaged in the advanced medical equipment and technology industry. The Company develops and manufactures system for the diagnosis of heart arrhythmia. Its product, named PocketECG, is used for remote monitoring of cardiac disorders, arrhythmia diagnosis and monitoring of heart, as well as is used for clinical drugs trials for cardiac safety. In addition, Medicalgorithmics SA provides services in the field of information technology and biotechnology, scientific research and development of natural sciences. Moreover, the Company works on the several projects, such as a device for tele-rehabilitation cardiology, software for optimizing repetitive task in hospitals, as well as devices and systems for remote description of the electrocardiography (ECG). It operates through MEDICALGORITHMICS US HOLDING CORPORATION and Medi-Lynx Cardiac Monitoring LLC and Medi-Lynx Cardiac Monitoring LLC.

PKO Bank Polski S.A.

PKO Bank Polski is a universal commercial bank offering services to both domestic and foreign retail, corporate and other clients. Co. is licensed to hold foreign exchange and currencies and sell/buy them, as well as perform a full range of foreign exchange services; open and hold bank accounts abroad and to deposit foreign exchange in these accounts. In addition, Co. conducts activities relating to leasing, factoring, electronic settlements via payment cards, as well as renders other financial services. As of Dec 31 2009, Co. had total assets of Zl156,478,685,000 and total deposit of Zl124,628,562,000. Co. operates in the Republic of Poland, Ukraine and Sweden.

Prime Car Management

Prime Car Management Sa. Prime Car Management SA is a Poland-based company engaged in the passenger transportation industry. The Company operates on the car fleet management market. It specializes in leasing and car fleet management (CFM) services. The Company offers a full range of leasing products and CFM services, including full service leasing (FSL) and semi-FSL, fleet management and leasing (financial or operational). Prime Car Management SA is the parent company of a capital group, operating under the Masterlease brand. Masterlease Group's fleet, including leasing and CFM services, consists of over 23 000 vehicles. The Company operates in Poland through a countrywide sales network, including the headquarters in Gdansk and 16 branches.

TATNEFT (GDR)

Unipetrol a.s.

Unipetrol is a holding company, engaged in oil and petroleum products processing, production of commodity chemicals, polymer materials, mineral lubricants, plastic lubricants, paraffins, road and insulation bitumen, special refinery and petrochemical products. Co. is also engaged in the distribution of fuels and operation of gas stations. Co. operates two refineries with an annual conversion capacity of 5.9 million tons of crude oil, three polyolefin units with an annual capacity of 595,000 tons, steam cracker, 339 fuel filling stations, and transport services. Co.'s core business segments include downstream (combining refining and petrochemicals), and retail distribution of fuels.

Provider
Wood and Company
Wood and Company

WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.

A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.

Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.

We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.

Analysts
Research Team

Other Reports on these Companies
Other Reports from Wood and Company

ResearchPool Subscriptions

Get the most out of your insights

Get in touch