Last week, economists from BM BNP Paribas updated the list of 10 companies from the WSE, which should perform better than the market in September. According to experts, the markets quickly shook off the holiday correction, and the reluctance of the Fed chairman to normalize the monetary policy quickly should continue to support the situation on the stock exchanges.
Coal prices will support JSW’s share price
“We expect that after the weak results for the first half of the year, the company’s situation will change dramatically in the second half of the year. The strong increases in coking coal and coke prices observed in recent months and the improvement in production volumes expected by the management board should translate into a sharp improvement in results (market expectations indicate even PLN 1bn EBITDA in Q3 versus PLN 152m in Q2), and therefore balance sheet (the company will be able to rebuild the cash buffer almost completely used up in the last two years). In addition, we would like to pay attention to the launch of extraction from the new Bzie mine at the turn of 2021 and 2022 and the restructuring (transfer to SRK by October 31) of the Jastrzębie III mine, which should improve the efficiency of JSW “- comments BM BNP Paribas BP experts.
JSW’s weekly chart shows the main resistance at PLN 60
AB PL still with a low valuation
“In recent quarters, the IT distribution market has maintained a high, double-digit growth rate, and the company is using its strong financial position, strong presence in the e-commerce channel and in the VAD distribution segment to increase its market share. The growing scale of operations, in turn, has a positive impact on operating profitability. We also note the low valuation (’21 PE <10x) ”.
Artifex Mundi – the only gaming representative
“The company specializes in the production of HOPA (Hidden Object Puzzle Adventure) casual games, which are a combination of logical and adventure games. The company presented preliminary revenues for the second quarter of this year, showing an increase of 43%. y / y to the level of approx. PLN 11.1 million. We positively assess the prospects for further growth of the company’s business, which will be based primarily on further scaling and expansion of customer acquisition channels for the Unsolved application, which integrates part of the HOPA games portfolio – we expect the company’s activities to accelerate in this area in Q4’21 ”.
Artifex Mundi quotes in the consolidation phase
Auto Partner will benefit from a rebound in the import of used cars
“We positively assess the long-term growth prospects of the company, we expect the high dynamics of revenues and profits to be maintained in 2021 due to the rebound in the import of used cars, restoration of social mobility, the development of export sales and an upward trend in profitability on the parts market.”
Benefit Systems has dealt with the pandemic
“We estimate that the company coped very well with the pandemic situation in the previous quarters (a quick cut in costs, closure of unprofitable fitness clubs permanently, quick recovery of the business during the summer months), and Benefit Systems managed to generate additional cash flow from operations during this period operational, which allowed to significantly reduce the debt. Therefore, we estimate that in the current season the company should relatively quickly rebuild the base of sports cards users and continue foreign development, and the next waves of the COVID-19 pandemic should not have such a big impact on the fitness market. We consider the current levels of the price, after its correction related to the sale of treasury shares, to be attractive in the long term ”.
Budimex is developing towards RES
“We assess the published results for Q2’21 positively – mainly in the context of improved profitability in the construction and service segments. The second half of the year should bring more throughput (postponement of contracts in the PiB formula) with at least maintaining the margin. Moreover, the management board points out that Budimex is currently not experiencing an increase in commodity prices and no significant pressure on wages. The company also feels comfortable with the order portfolio of nearly PLN 13 billion. In the long term, we also assess the direction of foreign development and in the RES segment as appropriate. ”
Kęty with the results again above expectations
“The results for the second quarter of this year once again broke the market consensus. The group recorded an increase in revenues by 31% y / y and net profit by 34%. The highest, about 40% y / y revenue growth was recorded in the Extruded Products Segment, which increased its EBITDA result by 56%. y / y After the first increase in the annual forecast after the results for Q1, the company raised its expectations for this year again. at the end of July. The management board also informed that in the third quarter the good market conditions and high demand for the group’s products continued. Additional support for the perception of shares may be the upcoming date of the review of strategic options for the Flexible Packaging Segment ”.
Pekabex – the boom in the industry continues
“The company has a record portfolio of orders, taking advantage of the structural increase in the use of prefabricated elements and operating in industries more resistant to a potential slowdown in investments (logistics, housing). The management board sees significant potential in the takeover of a German company from the prefabricated sector. We positively assess the company’s prospects due to the favorable market trends, a high portfolio of orders and a strong balance sheet, which allows for regular dividend payments ”.
Selvita with positive prospects
“We positively assess the long-term growth prospects for earnings after the merger with Fidelta, moreover, limiting pandemic restrictions will positively affect the“ unlocking ”of the CRO market in terms of new orders.
Wielton will gain a rebound in the transport market
“The very good situation in the transport industry translates into strong demand enabling price increases that offset rising costs. Thanks to this, we expect a clear improvement in results in 2021, and the results for Q1 are a good harbinger, when the company generated a high (6.9%) EBITDA margin and the management board maintained its expectations for this year. (7% of the EBITDA margin, an increase in the volumes of units sold from 15,000 in 2020 to 20,000 in 2021) ”.
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