Greek Market Watch: Budget execution, Construction sector, Optima Bank, NBG, GEKTERNA, Cenergy, Lamda Development, ASCO

Market Comment

ATHEX headed marginally south yesterday, reversing earlier gains, outperforming the European stock markets. In more detail, the General Index dropped by 0.16% at 1,215.80 units (FTSE Large Cap: +0.07%, FTSE Mid Cap: -0.46%, Banks Index: +1.28%) and the traded value was shaped at EUR 106.7m, up from Friday’s EUR 82.8m. We expect the international markets to set the tone in today’s session.

 

Today’s Headlines

·        Budget execution August 2023 (revised data)

·        Unsealing of the binding offers for the Northern Crete Motorway by year end (press)

·        Optima Bank IPO on 27-29 September, shares to commence trading on 04 October

·        National Bank of Greece to issue Tier II note of up to EUR 500m-Press

·        GEKTERNA 1H23 results out

·        Cenergy is awarded a contract for the FSRU in Italy

·        Lamda Development 1H23 release date

·        ASCO 1H23 results out

 

Macro Headlines

 

Budget execution August 2023 (revised data)

The MoF announced the final data for the central government budget execution on a modified cash basis in January-August 2023, the central government budget recorded a EUR 103m deficit vs. a targeted deficit of EUR 2,426m (based on the 2023 Budget introductory report) and a EUR 4,105m deficit in the same period in 2022. On a primary basis, the budget recorded a EUR 5,590 (upwards revised compared to EUR 5,485m provisional data) surplus vs. a targeted surplus of EUR 2,314m and a EUR 19m surplus in the same period in 2022.

 

Sector Headlines

 

Unsealing of the binding offers for the Northern Crete Motorway by year end (press)

According to Capital.gr, the unsealing of the three binding offers for the construction and concession of the northern Crete motorway, budgeted at EUR 1.75bn, is expected before the end of 2023. The three competitors are Gekterna, Mytilineos and the AVAX-EGIS-MERIDIAM joint venture.

 

Company Headlines

 

Optima Bank IPO on 27-29 September, shares to commence trading on 04 October

The price range will be announced today and the IPO of Optima Bank will begin tomorrow and will end on 29 September. The new shares will commence trading on 04 October 2023. Optima Bank aims to raise up to EUR 151.2m through the issue of 21.0m new shares at a maximum price of EUR 7.20/share.

 

National Bank of Greece to issue Tier II note of up to EUR 500m-Press

Reportedly (Kathimerini), National Bank of Greece has mandated investment banks in order to issue a Tier II note of up to EUR 500m with a duration of 10.25 years. Recall that Eurobank issued back in November 2022 a Tier II note of EUR 300m with a coupon of 10%.

 

GEKTERNA 1H23 results out

GEKTERNA reported 1H23 group turnover of EUR 1604.3m, up 9.8%   y-o-y (mainly driven by increased revenues from construction of EUR 636.3m in 1H23 vs. EUR 420.4m last year), EBITDA adjusted of EUR 250.2m (up by 14.7% y-o-y), with construction/Energy/concessions segments contributing EUR 52.6m/134.4m/73.5m respectively, while adjusted net profit stood at EUR 54.7m, up by 59.5% y-o-y. Group backlog (including contracts to be signed and projects that the Group participates in as investor) rose by EUR 200m y-t-d to EUR 5.7bn in 1H23 following new project wins, despite accelerated execution of signed contracts, while net debt stood at the 1H23 end at EUR 1,469m, up by EUR 103m y-t-d. Regarding outlook, the Group anticipates significant further strengthening in the coming periods, supported by a) the high backlog of EUR 5.7bn, b) the positive prospects of the construction sector in Greece as total budget of the new projects that will go out for tender will exceed EUR 30bn in the following years, c) the increased contribution from concessions (including the Attica motorway contract) and d) the maturing pipeline of  energy projects of various technologies (e.g. hydroelectric, storage, hybrid, etc.) in Greece, with total capacity (installed, under construction and ready to build) standing at 2,500 MW.

 

Cenergy is awarded a contract for the FSRU in Italy

Cenergy Holdings announces that CPW, its steel pipe segment, was awarded a >EUR 10m contract to manufacture and supply approximately 13 km of longitudinally submerged arc-welded steel pipes for the natural gas pipeline for the FSRU located in Ravenna, Italy. 

 

Lamda Development 1H23 release date

Lamda Development will release its 1H23 results on 27 September amc, with a conference call scheduled for the following day at 18.00 local time.

 

ASCO 1H23 results out

ASCO reported flattish sales for 1H23 at EUR 12m, EBITDA up by 196% y-o-y to EUR 1.95m and net profit EUR 1.64m, vs. EUR 0.535m last year. The Management’s key objectives remain the improvement of overall profitability and market share in the countries where it operates, namely Greece, Cyprus and Romania, while it looks forward to new activities, such as the acquisition of new land in the Crete region, with the aim of creating additional value for its shareholders. 

 

 

Calendar of Events

Macros

28/09/23 | Building Activity JUN & Economic Sentiment Indicator SEP

29/09/23 | Producer Price Index in Industry AUG & Turnover Index in Retail Trade JUL

20/10/23 | Standard & Poor’s – Greek sovereign credit review

Results (2Q/1H23)

26/09/23 | Profile (Bef-mkt), Epsilon Net (Bef-mkt), KRI-KRI (Aft-mkt)

27/09/23 | ADMIE Holding (Aft-mkt), LAMDA Development (Aft-mkt), Intrakat (18:00), Piraeus Port, Loulis Food (Aft-mkt)

28/09/23 | EYDAP

29/09/23 | Ble Kedros, Trastor REIC, Thessaloniki Water Supply, Space Hellas, Biokarpet, PRODEA Investments

EGM / AGM

26/09/23 | Attica Holdings (AGM)

04/10/23 | Biokarpet (EGM)

06/10/23 | CPI (EGM)

11/10/23 | Motor Oil (EGM)

18/10/23 | Jumbo (EGM)

Ex-Dividend

04/10/23 | ADMIE Holding (EUR 0.0582438822)

13/10/23 | ELVE (EUR 0.40)

02/11/23 | OPAP (interim EUR 1.00)

23/11/23 | Jumbo (extraordinary cash distribution EUR 1.47)

Initial Public Offering (IPO) – Optima bank 

27/09/23-29/09/23 | IPO period

04/10/23 | Commencement of trading of shares on the Regulated Market of the ATHEX 

 

OPTIMA BANK

Research Department Equity Research  Τ: 210 8173 383  F: 210 3279 287  E: [email protected] 32 Aigialeias & Paradissou str., 15125, Maroussi optimabank.gr