Friday, April 26, 2024- Market Monitor- Market Comment- In the Spotlight- Results

Friday, April 26, 2024

Market Monitor

The benchmark of the Greek stock market came off Wednesday’s 13-year high to show notable losses on Thursday, closing at the day’s low too. AthEx continues to anticipate corporate news such as mergers and acquisitions and was in profit-taking mode on the back of six consecutive sessions of gains for the main index aligned with foreign sentiment.

General index closed at 1,435.19 points, shedding 0.93% from Wednesday’s 1,448.70 points. The large-cap FTSE-25 index contracted 0.95%, ending at 3,499.66 points.  The banks index conceded 1.16%, as Piraeus fell 1.98%, Eurobank parted with 1.34% and National gave up 1.25%, while Alpha advanced 0.25%. Viohalco sank 3.14%, Sarantis shrank 2.53%, Motor Oil lost 2.49%, ElvalHalcor diminished 2.36% and Ellaktor dropped 2.12%, while Jumbo improved 0.56%. In total 33 stocks registered gains, 78 sustained losses and 22 remained unchanged. Turnover amounted to €142.1m, down from Wednesday’s €174.7m.

Investors may keep a selective stance in today’s session following recent earnings announcements and deal news-flow.

Greece/Retail Sector: Supermarkets in Greece saw a 3% surge in turnover in the first quarter of 2024 according to the most recent market data provided by NielsenIQ. Concurrently, private label products are progressively occupying a larger share of consumers’ shopping preferences. The study indicates a promising outlook for the organized retail food sector in the first quarter of 2024. Data up to March 31 reveals a solid growth of +3.0% compared to the same period last year. Fast-moving consumer goods (FMCG) followed suit with an increase of +2.7%.

This growth is largely attributed to a surge in sales volumes, as price increments remained relatively moderate, at around 1%. This trend has notably stimulated consumption patterns. Regarding FMCG super-categories, both Food & Beverages and Personal Care and Beauty sectors witnessed a robust turnover increase of +3.3%. However, Home Care products experienced a -1.7% decrease in turnover, largely due to a significant reduction in average prices. Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%. Furthermore, promotional activities are increasing from 68.7% to 69.8%. According to NielsenIQ’s latest findings, promotions heavily influence 9 out of 10 shoppers in their brand and store selections.

Greece/Privatizations: Procedure to sell-off a majority stake (50% plus one share) of the Lavrio Port Authority, located southeast of the greater Athens-Piraeus area, is underway by Greece’s privatization fund, officially known as the Hellenic Republic Asset Development Fund (HRADF). A deadline for the submission of expressions of interest is May 14, 2024.

Epsilon Net: Ginger Digital BidCo, a subsidiary of General Atlantic fund, jointly acting with the company’s major shareholders Mr. Mihos (55.42% stake) and NVG (7.5%) to proceed with a mandatory tender offer for the company’s shares that they don’t own (37.08% stake) at €12/share and delist the company. Implied valuation for 100% is €650.4m and the multiples of the transaction is 17.4x EV/EBITDA and 27.3x FY:23 earnings.

Mytilineos: Mytilineos is considering listing its shares on an international stock exchange, which could be the London Stock Exchange, within the next 12-18 months, taking into account its increasingly diversified and international geographic presence and aiming to increase the marketability of the shares for the benefit of investors.

Viohalco: AGM on May 28.

Cenergy Holdings: AGM May 28.

Ellaktor: On April 25, Ellaktor bought 297,663 REDS shares at €2.7/share.

Doppler: SMERC to acquire a minority 35% stake in the company from major shareholder Mr. Stavropoulos for €0.32/share (€1.3mn total transaction value).

Interwood: SCI partially covered by 90.64% with issue proceeds at €3.1mn through the issue of 10,430,969 new common shares and 850,764 new preferred shares.

Dimand: On April22, major shareholder and CEO Mr. Andriopoulos bought 1.6K shares for €15.538K (€9.71/share).

OPAP: FY:23 gross remaining dividend adjusted for treasury stock (6,379,994 shares) at €0.6105/share approved by AGM. Ex-dividend date (cut-off) April 29. Dividend record date April 30. Dividend payment May 9.

Thrace Plastics (FY:23 Results): The group announced FY:23 turnover from continued operations €345.37mn, down 12.4%, y-o-y. EBITDA stood at €44m, down 8.8%, y-o-y.

Net Profit reached €17.77mn, down 31%, y-o-y; Net Debt for the period shaped at €16.3mn including time deposits (amounting to €13.3m).

BoD proposed a total dividend of €0.23/share, which, excluding the interim dividend that was already distributed, will result in a remaining dividend to be distributed of €0.17/share (final dividend).

The Company will hold a CC with investors and financial analysts today at 11:00 am GR time.

Cretan Plastics (FY:23 results): Net Cash €74.7mn from net cash €72.158mn in 2022.

Athens Water (FY:23 results): FY:23 gross dividend €0.10/share. Net cash €322.75mn from €309.593m in 2022. The high cost of energy contributed to the reduced water demand during the winter months, however, water consumption was favored by the prolonged high temperatures of the summer season and showed a small increase of 0.6%.

Following the new draft law of the Environment Ministry, EYDAP acquires the chance to carry out operation and maintenance activities of water supply and sewerage networks and facilities outside Attica, to acquire control of businesses in related sectors, flexibility for development in RES and reuse of recycled water, simplification of procedures for assigning the maintenance, operation and upgrading of the external water supply system  as well as the maintenance of wells and interconnecting storm drains, its CEO, Haris Sahinis, said during the presentation of the 2023 financial results. The company has scheduled investments of 2.1 billion euros in the decade. Regarding a possible adjustment of tariffs, he noted that the relevant decisions will be made after the implementation of the new institutional framework. However, he emphasized that the expansion of activities and the continuous effort to reduce EYDAP’s operating costs are aimed at keeping tariffs down. In 2023 the absorption of investment program amounted to 44.2 million euros, increased by 45% compared to 2022, and increased by 140% compared to 2021.

Elinoil (FY:23 results): Nebt Debt down 31.9% y-o-y to €87.113mn from €127.939mn in FY:22.

Space Hellas (FY:23 results): Net Debt €51.176mn from €41.417mn, up 23.6%.

MIG (Q1:24 results):