Greek Market Watch: Budget execution, Banks (Hercules III), Moody’s (NBG, Eurobank), Eurobank, Motor Oil, KRI KRI, OPAP

Market Comment

ATHEX headed north yesterday for a 2^nd consecutive session, outperforming the European stock markets. In more detail, the General Index rose by 0.31% at 1,423.61 units (FTSE Large Cap: +0.28%, FTSE Mid Cap: +0.06%, Banks Index: +0.68%) and the traded value was shaped at EUR 72.0m, down from Friday’s EUR 79.9m. We expect ATHEX to move in line with the European stock markets today.   

Today’s Headlines

·         Central government budget execution January-August 2024 (preliminary)

·         MoF has applied to DG Comp for Hercules III-Press

·         Moody’s upgraded NBG, Eurobank outlook to positive

·         Eurobank to issue green bond-Press

·         Motor Oil acquires licenses for a wind park portfolio (press)

·         KRI KRI 1H24 Results out

·         OPAP Share buyback 

Macro Headlines 

Central government budget execution January-August 2024 (preliminary)

Facts: According to preliminary MoF data for the central government budget execution on a modified cash basis in January-August 2024, the central government budget recorded a EUR 1,048m surplus vs. a targeted deficit of EUR 2,774m (based on the 2024 Budget introductory report) and a EUR 92m deficit in the same period in 2023. On a primary basis, the budget recorded a EUR 7,571m surplus vs. a targeted surplus of EUR 3,316m and a EUR 5,596m surplus in the same period in 2023.

Comment: It is noted that part of the difference in tax revenues of EUR 647m is accounted in the fiscal result of 2023, while EUR 2,488m concerning the time differentiation of the transfers to SSFs and the military procurement expenditure do not affect the outcome in fiscal terms. With the exception of the above amounts, the overperformance in the State Budget Primary Balance for the period of January–August is EUR 1,120m, implying a c.0.5% outperformance vs. the 2% primary surplus target for 2024. 

Sector Headlines 

MoF has applied to DG Comp for Hercules III-Press

Reportedly (naftemporiki), the Minister of Finance stated yesterday that the government has applied to DG Comp for the increase of State guarantees of Hercules III by EUR 1.0bn to EUR 3.0bn and the extension of the program until June 2025. 

Company Headlines 

Moody’s upgraded NBG, Eurobank outlook to positive

Moody’s Ratings announced that it upgraded National Bank of Greece (Baa2) and Eurobank (Baa2) outlook to positive from stable for their senior unsecured debt and long-term deposit ratings. The news is positive and expected following the upgrade of Greece’s outlook to positive last Friday.  

Eurobank to issue green bond-Press

According to Bloomberg, Eurobank has mandated investment banks to tap the markets and issue a green senior preferred bond (MREL eligible). The bond will have a maturity of six years and will be callable in five. The proceeds from the issue will be used to finance or refinance a portfolio of green eligible projects. 

Motor Oil acquires licenses for a wind park portfolio (press)

According to Euro2day.gr, Motor Oil acquired a licensed wind park portfolio of 76.5MW in southern Euboea. 

KRI KRI 1H24 Results out

KRI KRI announced a strong set of 1H24 results, with sales up by 15.8% y-o-y to EUR 130.9m, EBIT at EUR 26.9m (+3.3%) and Net Profits of EUR 26.3m, up by 24.2%. The management upgraded its full year sales guidance to EUR 245m (+13.3% y-o-y, previous guidance at EUR 233m) and the EBIT estimate to EUR 39.2m from EUR 35m previously (down by 2.7% y-o-y on lower by 260bps EBIT margin).  

OPAP Share buyback

The company announced that it purchased from 9 to 13 September 265,982 own shares at an average price of EUR 15.909. The company now holds 10,153,819 shares or 2.74% of the total share capital. 

Calendar of Events

Macros

20/09/24 | Current Account Balance JUL & Turnover Index in Industry JUL

27/09/24 | Economic Sentiment Indicator SEP & Building Activity JUN

30/09/24 | Turnover Index in Retail Trade JUL & Producer Price Index in Industry AUG

01/10/24 | Unemployment Rate AUG & S&P Global Greece Manufacturing PMI SEP (08:00 UTC)

2Q/1H24 Results Release

17/09/24 | Noval Property (Aft-mkt)

19/09/24 | Viohalco, Attica Bank, Lavipharm

20/09/24 | Premia Properties, Logismos

25/09/24 | ADMIE Holding (Bef-mkt), AS Company (Aft-mkt)

26/09/24 | EYDAP, INTERTECH, Loulis Food

27/09/24 | Piraeus Port Authority, Alpha Real Estate, Biokarpet, Ble Kedros, Sunrise Mezz Plc, Phoenix Vega Mezz PLC, Orilina Properties, Alpha Trust Holdings, Alumil (Aft-mkt), Thessaloniki Water Supply (Aft-mkt), Trastor REIC, Daios Plastics

30/09/24 | Epsilon Net (Bef-mkt), Galaxy Cosmos Mezz Plc, Space Hellas, Technical Olympic (Aft-mkt), Athens Medical Center, Interlife, Medicon, Pairis, Mevaco

EGM / AGM

17/09/24 | MED (EGM)

19/09/24 | Ideal Holdings (EGM)

25/09/24 | Attica Bank (EGM)

26/09/24 | Jumbo (EGM)

02/10/24 | Cenergy Holdings (EGM)

Ex-Dividend

11/10/24 | Ktima Lazaridis (EUR 0.03)

21/10/24 | Alpha Trust Andromeda (EUR 0.17), Moda Bagno (EUR 0.38)

23/10/24 | ELVE (EUR 0.40)

04/11/24 | OPAP (interim dividend EUR 0.60)

ATHEX Companies Presentations (Hellenic Fund & Asset Management Association)

17/09/24 | KRI-KRI (08:45 GR Time)

Research Department
Equity Research

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