Unirea Shopping Center SA (SCDM; Bucharest Stock Exchange)

Romania-based company that operates two shopping centers in the Romanian cities of Bucharest and Brasov that can be bought for a 50% discount to company’s book value.

MCap $37M

PE 7

PBv 0.5

PS 2.9

ROE 6%

DY 0%

Yearly stock trading volume is less than 5% making it an overlooked stock. 

Unirea Shopping Center SA was established in 1975.

Unirea Shopping Center SA started trading on the Bucharest Stock Exchange in the year 2004.

Unirea Shopping Center SA is primarily engaged in the rental of commercial real estate properties. The Company operates two shopping centers: Unirea Shopping Center in the city of Bucharest, which consists of three buildings with a total rentable commercial area of 44,500 square meters, and Unirea Shopping Center, located in Brasov, with a total rentable commercial area of 16,900 square meters. Additionally, the Company is involved in the operation of parking lot in Bucharest, which has 939 parking spaces located on seven floors. 

Major shareholders of Unirea Shopping Center SA are The Nova Group Investments Romania SA with ~80% stake and SIF Muntenia with ~10%. Individuals and other investors hold less than 10% of the company’s stock.

Company’s website: http://www.unireashop.ro/

Long Unirea Shopping Center SA as of 2/08/2020

Purchase price: 61 RON

First Investment Bank AD (5F4; Bulgarian Stock Exchange)

First Investment Bank (Fibank) is the biggest bank with Bulgarian capital trading at 2 times earnings selling at 60% discount to book.

MCap $190M

PE 2

PBv 0.4

PS 0.7

ROE 19%

DY 0%

Yearly stock trading volume is less than 5% making it an overlooked stock. Two investors hold 85% of the stock with free float being just 15%.

First Investment Bank was established in 1993.

First Invest Bank shares have been traded on the BSE since 2007.

First Investment Bank is a Bulgaria-based bank, which provides corporate and retail banking services. The Bank’s products range includes banking services such as corporate and retail deposits and lending, current accounts, small and medium-sized enterprise (SME) lending, micro-lending, debit and credit cards services, letters of credit, bank guarantees, mortgage lending, as well as in-house banking services, among others.

First Investment Bank operates domestically through a network of branches and offices located across the country. In addition, it operates one branch in Cyprus.

First Investment Bank was the first bank to receive a 5-year loan from the European Bank for Reconstruction and Development for financing small and medium-sized enterprises in Bulgaria in the year 1996.

First Investment Bank has multiple subsidiaries: First Investment Finance BV (the Netherlands), First Investment Bank-Albania Sh.a., Framas Enterprises Limited, Debita OOD, Balkan Financial Services OOD, Realtor OOD, Zdravnoosiguritelna kasa Fi Helt AD and Diners Club Bulgaria AD, MKB Unionbank EAD.

Major shareholders of First Investment Bank are Mr. Tzeko Todorov Minev (46,750,000 shares or 42.5% of the capital) and Mr. Ivailo Dimitrov Mutafchiev (46,750,000 shares or 42.5% of the capital). The remaining 16,500,000 shares or 15% of the Bank’s issued share capital are owned by other shareholders, holding shares subject to free trade on the Bulgarian Stock Exchange.

Financials and other info: https://www.fibank.bg/en/investors

Long First Investment Bank as of 2/08/2020

Purchase price: 3.2 BGN

Yuri Gagarin PLC (4PX; Bulgarian Stock Exchange)

Bulgaria based leading manufacturer of cigarette filters for the tobacco industry trading for less than 5 times last year’s earnings with top line revenue of $74M for a $4M market cap company that can be bought for less than 1/10th of company’s book value.

MCap $3.9M

PE 4.9

PBv 0.09

PS 0.06

DY 0%

ROE 5% (5Y average)

CAGR 5% (5Y average)

Yearly stock trading volume is usually less than 20% making it an overlooked stock.

Yuri Gagarin was established in 1964 as a part of the state-owned tobacco monopoly Bulgartabak, which was one of the largest tobacco companies in Europe in the second half of the 1900s. 

Yuri Gagarin PLC is one of the first joint stock companies listed on the Bulgarian Stock Exchange, whose shares have been traded on the BSE since August 1998. Until October 2006 Yuri Gagarin Plc was an affiliate company and a part of the group Bulgartabak Holding AD. On October 3, 2006 the company shares owned by Bulgartabac Holding AD were sold out by public offering on the Bulgarian Stock Exchange in a mixed, closed auction. Yuri Gagarin became one of its 22 subsidiaries (12 tobacco processors, 9 cigarette manufacturers, and 1 packaging plant).

Yuri Gagarin is a leading manufacturer of multi-color cardboard and paper printed packages and labels for the cigarette, food-processing, cosmetic and other industries and a leading manufacturer of cigarette filters for the cigarette industry.

The production of cigarette filters is an important part of the Yuri Gagarin’s operations. The product list includes a great variety of mono-acetate and combined cigarette filters of different length, diameter, ventilation, pressure drop and segmentation. 

The Printing House of Yuri Gagarin offers a wide range of printing services including: prepress, offset printing, UV spot and overall varnishing, roto-gravure and flexo printing, hot-foil stamping, embossing, creasing, die-cutting, PVC windowing and up to six-point gluing.

The Company distributes its products in Bulgaria, Poland, Romania, Armenia and Slovakia.

The total amount of the company’s capital investments for the period of 2005-2011 is over $40M.

Yuri Gagarin operates from its plant and administrative premises spread on an area of 26.000 square meters in the north industrial area of the city of Plovdiv, Bulgaria.

Major shareholder is Baranko, an offshore company registered in Cyprus, with a stake of 49%.

Financials and other info: https://gagarin.eu/en/page/investor-relations/_-investor-relations

Long Yuri Gagarin PLC as of 2/07/2020

Purchase price: 7.25 BGN

Olainfarm AS (OLF1R, Nasdaq Riga)

Latvia based pharmaceutical company entangled into dispute between shareholders trading for less than 5 times last year’s earnings, growing top line at around 10% annually with consistently high ROE, trading at below company’s book value. We believe that shareholder disputes will resolve in time and will not fundamentally effect Olainfarm’s business prospects.

MCap 99M

PE 4.4

PBv 0.8

PS 0.7

DY 1% (5Y average)

ROE 14% (5Y average)

CAGR is 10%

Yearly stock trading volume is less than 10% making it an overlooked stock.

Olainfarm is the leading manufacturer in the chemical and pharmaceutical sector of the Baltic States with more than 45 years of experience.

Listed on NASDAQ Riga since 1997.

Olainfarm is is engaged in the manufacturing of finished drug forms and chemical pharmaceutical products in the Baltics. The group operates its activities through Medicine Production segment, Wholesale segment, Retail segment, Compression Materials segment and other segments.

Olainfarm exports to more than 60 countries worldwide and its main export markets are Russia, Ukraine, Belarus, The Netherlands, Kazakhstan, Uzbekistan, and
Germany. Farthest export market is Australia. Net sales break down geographically as follows: Latvia (29.4%), Russia (29.9%), Belarus (10.8%), Ukraine (9%), Europe (7.6%) and others (13.3%).

Olainfarm produces cardiological, neurologic, diuretic, spasmologic and antiallergic drug preparations, medicaments treating the digestive system, antibiotics and food supplements, as well as various active chemical ingredients and raw chemical materials. Its products include Amlodipine, Clonazepam, Euphillin, Furosemide, Furagin, Midolat, Protionol and Gripoflex, among others.

Company shareholders, who own 5% or more of issuer’s capital: Estate of Maligins Valerijs 46%, Nika Saveljeva 7.8%, Signe Baldere-Sildedze 7.8%, Irina Maligina 7.8%.

Financials and other info: https://lv.olainfarm.com/en/investors/

Long Olainfarm AS as of 01/21/2020

Purchase price: 7.22 Eu

Linas Agro Group AB (LNA1L; Nasdaq Vilnius)

Lithuania based agricultural holding company currently trading close to an all time low valuation due to recent unfavorable climate conditions negatively impacting company’s earnings. We expect unfavorable weather patterns and hence company’s earnings to mean revert in the near future.

MCap 96M

PE negative (5Y average is 7,5)

PBv 0.57

PS 0.13

DY 1.2% (5Y average)

ROE 3% (5Y average)

Compound annual growth rate (CAGR) is 5%

Yearly stock trading volume is less than 3% making it an overlooked stock.

Established in 1991. The company started its business with the export of the oilseed rape to Western Europe. The Group has been growing naturally and through acquisitions, engaging in new activities.

Currently, Linas Agro Group AB controls 38 subsidiaries in Lithuania, Latvia, Estonia and the Ukraine, having over 2,100 employees.

Listed on NASDAQ Vilnius since 2010.

Linas Agro Group AB activities are structured into five basic segments: The Grains and Oilseeds segment includes wheat, barley, rapeseed, sunflower and linseed, among others; The Feedstuffs segment’s activities include international supply of and trade in secondary products of the food industry, such as sunflower cake, sunflower meal and others; The Agricultural segment covers supplies of such products for crop production as seeds, fertilizers, plant protection products, and agricultural machinery; The Farming segment covers primary production of agricultural produce, including diary production, as well as cultivation of grains, rape and sugar beet, and the Other Products and services segment covers sales of solid biofuel.

Company shareholders, who own 5% or more of issuer’s capital: Akola ApS (Denmark) 69%, Darius Zubas (CEO) 11%.

Financials and other info: https://www.linasagrogroup.lt/en/to-investors/

Long Linas Agro Group AB as of 01/21/2020

Purchase price: 0.61 Eu

Grigeo AB (GRG1L;Nasdaq Vilnius)

Solid paper and wood industry company in Lithuania at a 20% depressed valuation due to recent environmental scandal with a 5% dividend yield.

MCap 76M

PE 5.7

PBv 1

PS 0.5

DY 5%

ROE 19%

Yearly stock trading volume of 3% making it an overlooked stock.

Established in 1923, but origin story dates back to the 19th century, when in 1823, paper was produced in the Kučkuriškiai paper factory for the first time in Lithuania.

Listed on NASDAQ Vilnius since 1994.

Grigeo, AB is the only paper and wood industry company group in Lithuania and one of the largest in the Baltic countries. The Group includes the following companies: Grigeo, AB, Grigeo Packaging, UAB, Grigeo Klaipėda, AB, Grigeo Baltwood, UAB, Grigeo Recycling, UAB and Mena Pak, AT.

Business processes cover almost the entire processing cycle of wood and paper components – from the tree up to the final product.

Major product classes: hygienic paper, container board, honeycomb paper core, corrugated cardboard and packaging, hardboard.

A number of awards in the Lithuanian market and the markets of other countries including multiple product of the year nominations.

Recent environmental damage scandal caused by the discharge of sewage into the channel which opens into the Curonian Lagoon.

Employees 800.

Information about shareholders, who own 5% or more of issuer’s capital: UAB “Ginvildos investicija” at 43.5%, Irena Ona Mišeikienė 13.07%.

Company pays a yearly uninterrupted dividend for multiple years.

Financials and other info: https://www.grigeo.lt/en/for-investors/about-this-section

Long Grigeo AB as of 01/21/2020

Purchase price: 1,195 Eu

Siauliu Bankas AB (SAB1L; Nasdaq Vilnius)

Highly profitable fastest growing bank in Lithuania (EU member country) with consistently high ROE available at book value specializing in commercial banking.

MCap 315M

PE 5.5

PBv 1

PS 2.5

DY 6%

ROE 20%

Yearly stock trading volume of 13% making it an overlooked stock.

Siauliu Bankas, AB was established in the year 1992. Listed on NASDAQ Vilnius since 1994.

Bank has 62 physical outlets in 37 towns, more then any other bank in the country.

4-th largest bank in Lithuania by market share of deposits and loans.

2.4 billion Eu in assets.

Fastest growing bank in Lithuania.

Employees > 800.

Siauliu Bankas AB Group has few subsidiaries: SB Lizingas (Consumer leasing and consumer credits), Bonum Publicum (Life insurance), also few others, notably real estate and investment management subsidiaries.

Shareholders’ structure: 50%/50% split between local and international investors. EBRD (European Bank for Reconstruction and Development) is the largest shareholder with 26% share.

Dividend policy states that the bank will aim to allocate at least 25% of the group’s annual profit in dividends.

Capital adequacy ratio >15%.

Cost to income ratio is constantly being pushed down by management and now down to almost ~35%.

Best customer service bank in the Baltics according to research by Dive in the year 2018.

Financials and other info: https://en.sb.lt/en/about-bank/investors/prospectus-and-reports/

Long Siauliu Bankas AB as of 01/21/2020

Purchase price: 0.535 Eu