News Parkiet

Banking

Polish banks are overpriced,

analysts say

Polish banks are too expensive compared with their regional peers despite future prospects, equity analysts say. Just one Polish bank, UniCredito?s Pekao S.A. boasts double-digit Return On Equity compared with 32 percent ROE at Hungarian OTP Bank or 24 percent at Komercni Banka in the Czech Republic. Publicly traded banks will benefit from lower bad loan ratios and increased corporate lending which accompanies higher GDP growth. However, valuations of most Polish banking stocks already reflect future economic recovery well into the next year. ?High EPS growth rates could attract investors looking for growth stocks. However, that won?t last, which is why I?d personally avoid banks?, says Artur Szeski, equity analyst at CDM Pekao.

Another banking analyst, Robert Sobieraj from BDM PKO estimates that top Polish banks will increase their EPS by 70 percent this year.

Financial services

BZ WBK Faktor teams up with Bibby

BZ WBK Faktor begun selling factoring services together with UK?s Bibby Faktor using the banking network of its parent-company, Bank Zachodni WBK.

Polish company, an indirect subsidiary of Allied Irish estimates the market will triple from 12.2 billion zloty within five to seven years.

Set up just over a year ago, BZ WBK Faktor says it will reach breakeven point by mid-2004.

Breweries

Brok-Strzelec stock sale successful

Regional brewery Brok-Strzelec S.A. raised as much as 47.5 million zloty selling 25 million shares priced at 1.9 zloty each. The company, which operates several small breweries in northern and southern Poland was forced to extend closing date for the offering by one day after media reports Brok may have broken Polish laws. Net proceeds from the offering will be used to reduce Brok?s outstanding debt.

Property

Impel subsidiary signs new contract with Eastbridge

GP-BIS property management firm has signed a five-year, 25-million zloty contract with DTC Management Services, an Eastbridge subsidiary that operates Domy Towarowe Centrum department store chain.

GP-BIS is a subsidiary of publicly traded Impel S.A.

Equity markets

DI BRE raises target

for Inter Groclin

Dom Inwestycyjny BRE Banku brokerage house has issued a new report on Inter Groclin Auto, raising the target price for Poland?s largest car seat maker to 125 zloty. DI BRE gave the company ?hold? rating after the recent surge in Groclin?s stock price. The firm, which also owns top soccer club Groclin Dyskobolia signed three 1.1 billion zloty ($290 million) contracts with BMW, Smart and Mitsubishi in early January.

Shares of Inter Groclin rose 0.8 percent yesterday to close at a new all-time high of 122 zloty.

With a market capitalization of 750 million zloty, Inter Groclin is now one of the largest components of MIDWIG mid-cap index.

Telekomunikacja

TP cuts broadband prices

Poland?s national phone company Telekomunikacja Polska reduced monthly fees for Neostrada DSL service from 149 to 99 zloty ($26.4) starting February. TP, which now has about 200.000 Neostrada subscribers also said it would try to reach over million clients in three years? time.

Telecommunications

Internet Group recovering despite weaker

dollar

Independent Polish ISP Internet Group says it will post its first ever operating profits in 4Q 2003 since the shell-company switched from shoe-making to telecommunications. Publicly traded firm saw its revenue rise by almost 10 percent last year despite weaker US dollar.

Most of Internet Group?s contracts with corporate clients are denominated in US dollars. Quarterly sales of Warsaw-based firm totaled 3.7 million zloty ($1 million).

CEO Marcin Marszałek says Internet Group will stop burning cash in the first quarter of this year after internal restructuring and aInternet Group went public four years ago after a reverse takeover of Ariel S.A., a failing shoe factory from central Poland.

It has since bought six smaller firms and now offers ISP, webhosting and Voice Over IP services to clients from Warsaw and several other Polish cities.