We maintain our approach towards the Company. We can’t see any fat chance that the Company’s financials improve materially in the nearest future given the relatively low demand and visible delay in the EU funds inflow.
After a few months of stabilization (from the autumn last year) steel prices have started to go down slightly under the pressure from the economic slowdown. Having said that we still expect a visible improvement on the steel market in 2025 taking into consideration a long-term nature of investment processes and the fact that the actual impact of funds from the National Recovery and Resilience Plan on Poland’s economy (construction, renewable energy) is likely to surface in 2H24 at the soonest.
In the perspective of the current decade EU funding and potential favorable law changes (liberalization of the wind mill law) may become the catalyst for the Company’s results in the area of the investments in the wind farms. Consequently, our 12M EFV at PLN 7.2 per share stays intact.
4Q23 revenues reaching PLN 459 million were in line with our forecasts, so were the Company’s EBITDA at PLN 10 million and EBIT at PLN 7.7 million. 4Q23 net profit at PLN 5.8 million materially exceeded our expectations at PLN 2.7 million. Typically, final quarterly results (revenues, EBIT, net profit) were close to preliminary figures. Operating cash flows in 4Q23 stood at PLN -10.3 million, capex reached PLN 1.3 million.
