MSE Trading Report for Week ending 07 May 2021

MSE Equity Total Return Index:

Chart of the Week: Harvest Technology plc

Highlights:
  • The MSE Equity Total Return Index advanced by another 0.1% to 8,310.761 points. A total of 17 equities were active, seven of which traded lower, while another six closed higher. Total weekly turnover was lower when compared to the previous week, as it stood at €0.5m – generated across 108 transactions.
  • Last Thursday, Bank of Valletta plc published its interim directors’ statement for the first quarter of 2021. Profit before tax for the first quarter of FY 2021 amounted to €9.3m. This was in line with underlying performance trends experienced over the course of last year, conditioned by subdued activity and provisioning occasioned by the COVID-19 environment.
    • Revenue decreased by 4% over the comparable period of FY 2020, mainly due to the effect of a refund of customer fees and charges which had been introduced late last year – a situation currently being reviewed with the regulator. Revenue performance was also affected by reduced foreign exchange business on account of COVID-19 restrictions.
    • Operating costs were higher by 4% when compared to the first quarter of FY 2020. This was mostly driven by an increase in employee compensation, as well as investment in technology and related amortisation. During the first quarter of 2021, the Bank participated in the TLTRO III Eurosystem funding. This will contribute to mitigate the costs of funding liabilities through which the Bank will continue to sustain its position as a key player in the provision of finance to local businesses and households.
    • As announced in the annual financial statements, the Bank made a capital injection of €20 million in its associate company MAPFRE MSV Life plc, (‘MMSV’) in March 2021. Following this, the Bank continues to retain a 50% shareholding in MMSV, with whom it will intensify its work as a strategic market partner.
    • The BOV 2023 Strategy commenced late last year, and gained momentum in the first quarter of 2021. Key milestones achieved included significant reductions of over-the-counter transactions as well as cheques processed and encashed in branches. These changes will enable the bank to be more effective in meeting customers’ banking needs.
    • The bank has updated the market on its new correspondent banking arrangements where it already received payments through Western Union Business Solutions from two major US dollar clearers. Full transition from Raiffeisen Bank International to Western Union Business Solutions is planned for the week starting May 10, 2021.
    • On the trading floor, the bank was the most liquid throughout the week, generating a total turnover of €0.23m. A 1.1% fall in price was recorded, as 256,612 shares were spread across 34 transactions.
  • Last Tuesday, FIMBank plc announced that its Annual General Meeting is scheduled to take place on July 15, 2021. Two deals involving 1,001 shares translated into a 23.5% spike in price, to close at $0.358.
  • Last Tuesday, Malta International Airport plc (MIA) published April’s traffic results. Passenger traffic through Malta International Airport totalled 39,392 movements during the month of April. Representing a drop of 94% compared to the same month in 2019, this traffic result marked no significant improvement over previous months.
    • Malta International Airport’s top markets for the month were Italy, Germany, Turkey, France, and Bulgaria, with the United Kingdom remaining in the bottom half of the top 10 market table, as a travel ban between the two countries remained in place. In April, Airports Council International Europe published results for the first quarter of the year, which showed that traffic across European airports represented by the organisation had declined by 81.7% compared to the same three-month period in 2019.
    • The organisation also published a downgraded traffic forecast for European airports, which predicts that a full recovery to 2019 passenger volumes will be reached in 2025.
    • MIA held its Annual General Meeting on May 5, 2020 whereby the annual report, including financial reports for the year ended December 31, 2020 and the directors’ and auditors’ reports were considered and approved.
    • The equity started off the week in the green as it reached €6.25, but ended the week flat at €6.20. This was the result of 13,370 shares spread over 16 deals.
  • The board of Harvest Technology plc announced the following highlights of the financial results of the Company and its subsidiaries (the “Harvest Group”) as at March 31, 2021 as extracted from the unaudited management accounts of the Company as at such date.
    • The unaudited consolidated net profit before tax as at end March 2021 amounted to €1,117,061. This marks an improvement of 7% over the projected consolidated net profit before tax for the period, and a 34% increase of the net profit before tax for the same period in the preceding year.
    • The gross profit margin of the Harvest Group for the quarter improved by 10 percentage points to 51%. Meanwhile, EBITDA margin for the quarter improved by nine percentage points to 30%.
    • Going forward, as economies adjust to the post-COVID era, the Harvest Group will continue to invest in the group’s business with a view to pursuing its growth strategy. In this light, the Board is re-iterating its net profit before tax target of €4,000,000 for the financial year ending December 31, 2021.
    • The board expects to distribute an aggregate dividend amount similar to that distributed in the preceding financial year, split over two interim payments during the course of 2021, and a final dividend in the first part of 2022.
    • During yesterday’s Annual General Meeting, the board approved the audited consolidated financial statements for the financial year ended December 31, 2020, together with the directors’ and auditors’ reports thereon.
    • The aggregate of the net interim dividends declared and distributed by the board on July 28, 2020 (amounting to €546,785, or €0.024 per share), November 4, 2020 (amounting to €364,490, or €0.016 per share) and March 26, 2021 (amounting to €455,613, or €0.020 per share). These amount to an aggregate net dividend for the financial year ended December 31, 2020 of €1,366,888 (equivalent to €0.060 per share). Such aggregate net final dividend was approved.
    • The equity was the second most liquid of the week, as it recorded a total turnover of €93,464. The equity’s price was up by 3.5% as 63,653 shares changed hands across 11 transactions.
  • Last Wednesday, International Hotel Investments plc announced that its operating arm Corinthia Hotels Limited has signed an agreement with the Reuben Brothers to manage and operate The Surrey, a Corinthia Hotel in New York.
    • Undergoing an extensive transformation, the hotel is slated to re-open in early 2023 as The Surrey, a Corinthia Hotel, operated and managed by Corinthia Hotels, a collection of five-star hotels across Europe and the Middle East, and now North America.
    • This development will mark the Corinthia group’s first property in the United States and a second collaboration with Reuben Brothers, the global private investment firm, with whom a Corinthia Hotel is under development in Rome. The consortium will partner with Casa Tua on the New York hotel’s food and beverage offering, bringing the Miami Beach hotspot and treasured celebrity favourite to New York for the first time.
    • The equity declined to €0.625 during the week but managed to recover, as it closed unchanged at €0.68. Three deals involving 4,460 shares were executed.
  • Last Monday, Simonds Farsons Cisk plc announced that the 74th Annual General Meeting shall be convened on June 24, 2021. A 3.1% fall in price was recorded over the week, as 4,130 shares changed hands across five transactions. The equity ended the week €0.30 lower at €9.45.
  • In the property sector, Malita Investments plc announced that the Annual General Meeting shall be held on May 11, 2021. Two deal involving 5,400 shares pushed the price up by 2.3%, to €0.90.
  • Trident Estates plc will be holding its 21st Annual General Meeting on June 25, 2021. No trading activity was recorded this week.
  • Loqus Holdings plc headed the list of gainers, as it closed 48.1% higher at €0.097. This was the outcome of a single deal of just 1,000 shares.
  • Last Saturday, Medserv plc approved the audited consolidated financial statements for the financial year ended December 31, 2020.
    • The board resolved that these audited consolidated financial statements be submitted for the approval of the shareholders at the forthcoming Annual General Meeting (AGM).
    • Subject to regulatory approval of the shareholder circular relating to the share for share exchange transaction with Regis Holdings Limited, the AGM is scheduled to be held on June 11, 2021.
    • The total revenue generated for the year amounted to €32,411,788 (2019: €68,729,751) as against a forecast of €27,055,000.
    • Adjusted Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to €5,565,272 (2019: €12,718,683) as against a forecast of €5,480,000.
    • Forecast results are those projected in the financial analysis summary published on the July 15, 2020. The results for the year are in line with the forecast published in the financial analysis summary.
    • The equity was not active during the week.
  • Last Wednesday, LifeStar Holding plc (LSI) announced that the offer for sale of 18,518,519 ordinary shares at an offer price of €0.54 per share and the offer of 6,570,000 ordinary shares to its shareholders in exchange for their ordinary shares at an exchange ratio of 1 company share to 1 share in LSI, has been approved by the listing authority.
    • Trading is expected to commence on June 1, 2021.
    • The net proceeds from the IPO shall be for the benefit of the Company and shall be applied by the Company principally in order to redeem the €10,000,000 5.00% unsecured bonds maturing June 2, 2021.
    • Any excess of the net proceeds from the IPO over the amounts required to redeem outstanding LSH Bonds, shall be used by the Company for general corporate purposes following such redemptions.
    • No trading activity was recorded.
  • The MSE MGS Total Return Index lost further ground, as it closed 0.07% lower at 1,124.15 points. A total of 19 issues were active, six of which headed north, while another eight closed in the opposite direction. The best performance was recorded by 2.4% MGS 2041 (I) as it closed 2% higher at €125.00. On the other hand, the 2.2% MGS 2035 (I) closed 5.6% lower at €119.00.
  • The MSE Corporate Bonds Total Return Index registered a further 0.18% increase, reaching 1,121.07 points.  Out of 47 active issues, 19 registered gains, while another 15 lost ground. The 4.5% Shoreline Mall plc Secured € Bonds 2032 headed the list of gainers with a 2.4% increase, to close at €101.41. Conversely, the 5% Dizz Finance plc Unsecured € 2026 lost 3.5%, ending the week at €96.50.
  • In the Prospects MTF market, seven issues were active. The 5% FES Finance plc Secured € 2029 was the most liquid, as it generated a total turnover of €14,550.

 

Upcoming Events 
Best Performers:
1. LQS+48.09%
11 MAY 2021MT: Malita Investments plc – Annual General Meeting2. FIM+23.45%
12 MAY 2021MT: Trident Estates plc – Annual Results3. HRV+3.45%
20 MAY 2021MT: Bank of Valletta plc – Annual General Meeting
24 MAY 2021MT: Grand Harbour Marina plc – Annual General MeetingWorst Performers:
26 MAY 2021MT: Main Street Complex plc – Annual General Meeting1. MDI-9.52%
2. SFC-3.08%
3. RS2-2.56%

 

 

 

Price (€): 07.05.2021Price (€): 30.04.2021Weekly Change (%)2021 Performance (%)
MSE Equity Total Return Index8,310.7618,303.2940.09-1.90
BMIT Technologies plc0.5000.505-0.993.73
Bank of Valletta plc0.9000.910-1.10-5.26
FIMBank plc (USD)0.3580.29023.45-28.40
Grand Harbour Marina plc0.6600.6600.00-5.71
GO plc3.4603.480-0.57-2.26
Harvest Technology plc1.5001.4503.45 1.35
HSBC Bank Malta plc0.8300.8053.11-7.78
International Hotel Investments plc0.6800.6800.00-5.56
Lombard Bank plc2.0002.0000.00-15.25
Loqus Holdings plc0.0970.06648.09-2.02
LifeStar Holding plc0.6000.6000.0020.00
MIDI plc0.3800.420-9.52-15.18
Medserv plc0.8300.8300.005.06
Malta International Airport plc6.2006.2000.000.00
Malita Investments plc0.9000.8802.270.00
Mapfre Middlesea plc2.3802.3800.00-3.25
Malta Properties Company plc0.5450.5450.009.00
Main Street Complex plc0.4980.4980.00-0.40
MaltaPost plc1.2401.250-0.50-6.77
PG plc2.5002.5000.0025.00
Plaza Centres plc0.8800.8800.00-10.20
RS2 Software plc Preference Shares*1.7501.7500.000.00
RS2 Software plc1.9001.950-2.56-5.00
Simonds Farsons Cisk plc9.4509.750-3.0821.15
Santumas Shareholdings plc1.3901.3900.000.00
Tigné Mall plc0.7500.7401.35-11.77
Trident Estates plc1.6001.6000.00-3.61

* Trading commenced on May 3, 2021.

 

This article, which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a Member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]