Greek Market Watch: T-bills, Cyprus Interconnection, PPC, IPTO, Attica Bank, Jumbo, GEKTERNA, Terna Energy, AS Company, Fourlis

Market Comment

ATHEX headed north yesterday for a third session in a row, outperforming the European stock markets. In more detail, the General Index rose by 0.55% to 1,462.06 units (FTSE Large Cap: +0.51%, FTSE Mid Cap: +0.31%, Banks Index: +0.79%) and the traded value was shaped at EUR 113.0m, down from Tuesday’s EUR 145.9m. We expect the market to try to digest recent gains today, with Jumbo in focus.

Today’s Headlines

·         6-month T-bill yield down

·         Greek parliament to approve the assumption of 50% of the geopolitical risk of the Crete-Cyprus Interconnection by Greece

·         PPC agreed to acquire a 17GW RES portfolio and 66.6MW wind already in operation from the Copelouzos and Samaras groups and 20% stake in the new CCGT in Alexandroupoli from Copelouzos

·         PPC to cancel 12.7m treasury shares

·         ADMIE Holding 1H24 results out

·         Attica Bank shareholders approved reverse split and share capital increase

·         Jumbo EGM today

·         GEKTERNA and Terna Energy 1H24 Results out today amc

·         AS Company 1H24 results out

·         Fourlis issuance of new shares for the stock grant programme

Macro Headlines

6-month T-bill yield down

The Greek State raised EUR 600m yesterday from the issuance of 26-week T-bills. In more detail, the total amount auctioned was EUR 500m, while total bids reached EUR 1,062m (2.12x coverage ratio vs. 1.97x in the previous auction) for an interest rate of 2.85% (vs. 3.09% in the previous auction). 

Sector Headlines

Greek parliament to approve the assumption of 50% of the geopolitical risk of the Crete-Cyprus Interconnection by Greece

According to Euro2day.gr, the Ministry for Environment and Energy will submit today for approval to the Greek parliament a law amendment according to which, Greece assumes 50% of the Geopolitical risk associated with the construction of the Interconnection of Cyprus with Cyprus (part of the GSI, Greece-Israel Interconnection). The abovementioned development is a major step for the commencement of works for the Crete-Cyprus cable and is positive for IPTO and ADMIE Holding.

Company Headlines

PPC agreed to acquire a 17GW RES portfolio and 66.6MW wind already in operation from the Copelouzos and Samaras groups and 20% stake in the new CCGT in Alexandroupoli from Copelouzos

PPC announced yesterday

a)   an agreement with the Copelouzos and Samaras groups for the acquisition of a RES portfolio of 66.6MW in operation in Evoia and Lakonia with high load factors (32%) for a total consideration of EUR 111m in EV terms. According to the agreement, the transaction was agreed at a 7.2x EV/EBITDA, implying an EBITDA contribution of EUR 15.5m p.a.

b)   an agreement also with Copelouzos/Samaras Groups for the acquisition of a RES pipeline of up to 1.7 GW under development that will be jointly developed in collaboration with the sellers for a consideration of EUR 106m and

c)   the acquisition of a 20% share in the new 840MW CCGT unit which is under development in Alexandroupoli for EUR 27m. As a reminder, PPC already holds a majority stake (51%) in the CCGT, therefore after this development it will hold 71% and statutory majority with the remaining 29% being held by DEPA Supply.

It is highlighted that for said agreement, PPC Group is expected to offer for the consideration a combination of cash and own shares, that is a cash amount of EUR 106m and EUR 70m in own shares with a sale price of EUR 12.21 (1.5% of total).

Comment: in our view, the abovementioned developments are positive for PPC as it a) accelerates its investing programme in the RES at b) an attractive price and c) with high quality assets (according to our estimates, the RES portfolio has secured a competitive compensation tariff of c.EUR 90/MWh with a residual life of at least EUR 15years), while at the same time e) extends its RES pipeline which will jointly develop with a partner with a successful track record in the business, Copelouzos Group, who will also enter PPC’s share capital. It is also reminded, that during the 1Q24 results conference call, PPC’s management said that it plans to extend the share buyback programme of up to 10% of company shares (currently holds 6.99% treasury shares), adding that 1/3 of own shares will be used for management compensation, 1/3 for acquisitions and 1/3 will be cancelled.

PPC to cancel 12.7m treasury shares

PPC will propose to the upcoming EGM the cancellation of 12,730,000 own shares (3.33% of total). It is reminded that during the 1H24 conference call, PPC’s management said that it plans to cancel part of treasury shares soon, (at that time held own shares equal to 6.3% of total).

ADMIE Holding 1H24 results out

ADMIE Holding (IPTO) announced revenues of EUR 225.4m (+19.0% y-o-y), adjusted EBITDA of EUR 167.3m (+21.5% y-o-y) and net profits of EUR 73.8m (+27.4% y-o-y) for 1H24. Group net debt shaped at EUR 843.4m, down by EUR 107.1m y-t-d, despite heavy capex of EUR 262.3m (cash and cash equivalents EUR 322.4m). Consequently, ADMIE Holding’s (listed company) Revenue and Net profit for 1H24 rose to EUR 37.6m and EUR 37.1m, up 27.4% and 27.2% YoY respectively. Finally, IPTO S.A. said the Crete – Attica interconnection is in its final phase, while the second phase of the tender for the sale of its 20% has been completed, with a binding offer from State Grid International Development Belgium Ltd, while the connection of the Cyclades is in the fourth and final phase, aiming to be completed within 2026, and the work on the projects in the Peloponnese and the Dodecanese is progressing according to schedule.

Attica Bank shareholders approved reverse split and share capital increase

The EGM of shareholders approved the reverse split of existing shares outstanding (50.014.177) by merging 100 shares to 1 and 2) the share capital increase of EUR 735.1m, of which EUR 672.2m through the issue of up to 359,469,360 new common shares with preemption rights in favor of the existing shareholders at an offer price of EUR 1.87/ share and EUR 62.9m through the issuance of up to 359,469,360 warrants (1 warrant equals 3.5 new shares at EUR 0.05/share).

According to the initial timetable, the stock will trade ex-rights on 08 October, the trading of rights will commence on 11 October and the share capital increase will be completed on 24 October. The new shares from the SCI will commence trading on 31 October as well as the new shares from the exercise of the warrants will commence trading in November 2024.

Management targets pre-provision income to exceed EUR 150m in 2025e and >250m in 2027e, RoTE of >18% in 2025e and >22% in 2027e and the NPE ratio to be lower than 3% in 2025e and 2027e, with performing loans of EUR >4.0bn in 2025e and EUR >7.0bn in 2027e and deposits of EUR 10bn in 2025e and EUR >11.0bn in 2027e. Finally, management aims CET1 ratio to stand at 14.3% in 2025e and 15.4% in 2027e.  

Jumbo EGM today

The company will hold an EGM today at 16:00 Athens time to approve a share buyback programme from EUR 1.00/share to EUR 27.20/share and for up to 10% of the company’s share capital with a duration of 24 months. 

GEKTERNA and Terna Energy 1H24 Results out today amc

GEKTERNA and Terna Energy are set to release their 1H24 Results today after the market close. GEKTERNA will hold a conference the next day. 

AS Company 1H24 results out

The company posted its results yesterday, with revenues came in at EUR 11.6m vs. EUR 11.9m in 1H23, posting a 3.2% y-o-y decrease. EBITDA also decreased by 8.0% y-o-y, to EUR 1.8m vs. EUR 1.9m in 1H23, while net profit also decreased by 8.0%, reaching EUR 1.5m vs. EUR 1.6m a year ago. Cash position of the group increase by EUR 4.4m compared to FY23 and reached EUR 18.7m. Management stated that continues to seek for new opportunities to diversify company’s risk such as investments in real estate in Crete, while also expanded the company’s product portfolio by acquiring the distribution rights of Chicco and Bobby brand for Greece and Cyprus and Bebe Comfort and Safety First brands for Greece. 

Fourlis issuance of new shares for the stock grant programme

Fourlis announced that following the decision of the AGM held on 21 June 2024, the company decided to increase its share capital by EUR 385,033 and by capitalizing the equal part of the distributed reserves, while it will issue the same number of shares with a nominal value of EUR 1.00/share for the purpose of the stock grant programme. 

Calendar of Events

Macros

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)

10/10/24 | CPI & Harmonized CPI SEP & Industrial Production Index AUG

2Q/1H24 Results Release

26/09/24 | Jumbo (Bef-mkt), GEK TERNA (Aft -mkt), TERNA Energy (Aft -mkt), EYDAP, Loulis Food, Flexopack (Aft -mkt), Euroconsultants (Aft -mkt), Haidemenos

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

30/09/24 | Intrakat (Aft-mkt), Intracom Holdings (Aft-mkt), Biokarpet (Bef-mkt), Galaxy Cosmos Mezz Plc, Alumil (Aft-mkt), Space Hellas, Technical Olympic (Aft-mkt), INTERTECH, Epsilon Net (Bef-mkt), Athens Medical Center, Interlife, Medicon, Pairis, Mevaco, Vogiatzoglou Systems (Bef-mkt)

EGM / AGM

26/09/24 | Jumbo (EGM)

02/10/24 | Cenergy Holdings (EGM)

Ex-Dividend

11/10/24 | Domaine Costa Lazaridi (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)

02/10/24 | AUSTRIACARD Holdings (09:30 Athens time)