With this publish, we crossed the “half-time” mark for the Belgian Inventory Market. Amongst these 20, in random order chosen shares, 6 made it onto the watch listing, amongst them a former holding of mine. Let’s go:
101. Newtree
In response to TIKR, this 17 mn EUR market cap firm “offers goodies, spreads, snacks, items, and occasional merchandise. It additionally gives merchandise via on-line”. On their investor web site, annual accounts are solely out there to 2018. “Move”.
102. Elia Group
Elia is th 6,6 bn EUR market cap operator of the Belgian Electrical energy transmission community. Additionally they personal and run 50 Hertz, one of many bigger German transmission community operators. Electrical energy transmission networks are absolutely regulated property, i.e. if the community is working, the proprietor will get a assured return primarily based on the “Regulated Asset Base (RAB)”.
Often these returns are by some means inflation listed. In Elia’s case, the RAB is rising fairly quick, however sadly revenue isn’t rising. MAybe this has to to with the 9 bn of web debt. The valuation at ~11x EV/EBITDA or 1,3xEV/RAB is okay, particularly as they’ve been capable of develop RAB fairly properly:
The dividend yield of two,2% is sort of low for an infrastructure asset, however comprehensible with the kind of progress.
Sadly, greater than half of the corporate is owned by the Belgium Authorities. As I attempt to steer clear of Authorities owned corporations and the inventory isn’t low cost sufficient for “deep worth”, I’ll “go”.
103. Arma (Knowledgeable MArket)
Arma is an Knowledgeable MArket inventory the place there isn’t a recorded commerce and no info out there. “Move”.
104. Immo Zenobe Gramme
That is one other considered one of these Belgium corporations that situation some sort of actual property certificates. The 12 mn market cap firm has a comparatively good inventory worth growth for one thing RE associated and appears to be a subsidiary of KBC. Nonetheless, “go”.
105. Immobel
This 280 mn EUR market cap Actual property firm has clearly seen higher days. Though the inventory worth is down -75% from the height, they nonetheless commerce at 0,6x e-book worth. “Move”.
106. Cenergy
Now Cenergy, a 1,5 bn EUR market cap firm appears to be like very fascinating. In response to TIKR, “Cenergy Holdings SA manufactures and sells aluminum, copper, cables, metal and metal pipes, and different associated merchandise in Belgium and internationally.”
One doesn’t have to be EInstein to grasp that manufacturing cables is nice enterprise lately and Cenergy’s inventory worth displays that:
The corporate has been loss making in 2016/2017 however properly recovered. Curiously, 80% of the shares are held by a Greek Holding firm. I truthfully haven’t been conscious that apart from Prysmian, Naxan and NKT there’s one other listed cable producer.
In any case, that is an fascinating one which I’ll placed on “watch”.
107. Anheuser-Busch InBev SA/NV (AB Inbev)
Technically, AB Inbev, the world’s largest brewer with a market cap of 111 bn EUR is a Belgian firm, even if a lot of the enterprise is finished within the US and the corporate famously has been rolled-up by the Brazialian 3G (“Dream Massive”) guys. As the opposite §G roll-ups (Kraft Heinz, Burger King), AB Inbev has been struggling for a while and the inventory worth did little or no:
The inventory isn’t very low cost, doesn’t pay a excessive dividend and has been doing nothing for a few years. On the plus aspect are trade main margins as may be seen in that chart from their IR presentation:
The massive drawback for my part is the nonetheless excessive quantity of debt and actually low return on capital. ROIC/ROCE is round 8% which may be very low particularly as they reinest most of their FCF into these low yielding property.
They appear to have began purchase backs, however solely to a small quantity, lower than 1% of market cap. It might be fascinating to grasp, why return on capital is so low, usually the beer gamers have considerably greater returns in comparison with the Spirits guys who have to let their stuff age for a really very long time.
AB Inbev s additionally a very good reminder that greater isn’t all the time higher in the long term.
Nonetheless, I’ll put them on “watch”.
108. SIPEF
SIPEF with a market cap of 586 mn EUR is a fairly “uncommon beast” within the inventory market because it is without doubt one of the few European plantation corporations. The most important shareholder with ~39% is Achermans van Haaren, the bulk homeowners of DEME.
SIPEF primarily crops and harvests palm oil which is used amongst different issues for cleaning soap. Palm oil has a reasonably unhealthy popularity from an ESG perspective, however SIPEF claims that their palm oil is “sustainable”.
The inventory is sort of low cost however has completed little for a very long time which isn’t so shocking for a capital intensive enterprise that produces largely commodities.
I feel the inventory may very well be fascinating within the low a part of a cycle however for me it’s a “go”.
109. Banque Nationale de Belgique
That is truly the Central Financial institution of Belgum which is surprisingly inventory listed and has a market cap of 180 mn EUR. I lined the inventory (and the Swiss Central Financial institution) a few years in the past within the weblog.
The inventory worth has been fairly weak since then, so good that I didn’t observe up right here:
The issue right here is clearly that the juicy dividends have disappeared.
The issue appears to be that the Belgium Nationwide Financial institution is loss making. It might be fascinating to grasp if and when this might flip round. So I’ll put this “outdated pal” on “watch”.
110. Viohalco
This appears to be the Hodiong Firm of Cable maker Cenergy (Nr. 106) plus actual property and a variety of debt. The market cap is 1,5 bn. The Stassinopoulus household appears to personal a good quantity of shares. The boss Nikos appears to be one of many richest folks in Greece.
They appeared to have moved the corporate from Greece to Belgian 10 years in the past. There appear to be extra steel primarily based actions on this Holdco, like Aluminium.
I’m not 100% certain what to do with that one, however unsure, I’ll “go”.
111. Realco
In response to TIKR, this firm “engages within the growth, manufacturing, and sale of enzyme-based hygiene options and processes primarily in Belgium”.
Market cap is round 10 mn EUR, the share worth has been going sideways with some volatility for the final 10 years.
Since 2020, the corporate has been loss making. “Move”.
112. Syensqo SA/NV
Syensqo, a 9,2 bn EUR market cap firm is a current spin-off from Belgium Chemcial Conglomerate Solvay.
The inventory to this point traded downwards from the Spin-off date:
David Einhorn had introduced that he had purchased a place early 2024.
That is what Einhorn wrote in January:
As I feel that Chemical corporations might now be very fascinating as a cyclical play, this one goes on “watch” with some precedence.
113. KBC Ancora
KBC Ancora is a Holding firm that owns a stake in KBC Financial institution and has a market cap of three,5 bn. The possession construction of KBC is sort of sophisticated:
Not my sort of inventory, so “go”.
114. Mithra Prescription drugs
This 15 mn EUR market cap firm has seen higher days and is burdened with 300 mn in debt. In response to TIKR it “develops, manufactures, and markets advanced therapeutics within the areas of contraception, menopause, and hormone-dependent cancers in Belgium, Europe and internationally”.
The corporate is loss making and with this quantity of debt, the clock is ticking. “Move”.
115. Deceuninck
Deceunink, a 348 mn EUR market cap firm “engages within the design, manufacture, recycling, and distribution of multi-material window, door, and constructing options in Europe, North America, Turkey, and internationally.”
As a lot of its friends, the inventory appears to be like low cost apart from the P/E however hasn’t completed a lot over 10 years:
The excessive P/E in comparison with EV/EBIT appears to be the results of their sizeable Turkish operations that solely look good earlier than foreign money changes. General, nothing that excites me a lot, “Move”.
116. Finasucre (Knowledgeable Market)
This Knowledgeable Market inventory truly noticed some buying and selling in 2023. In response to Euronext, the corporate “specializes within the manufacturing and advertising and marketing of sugar. As well as, the group develops manufacturing actions of renewable power, alcohol, molasses, beet pulp, animal feed, pure components, lactic acid and biodegradable and recyclable plastics.”
There’s additionally a connection to Cie Bois Sauvage via an funding into an Insect Breeding start-up and different corporations.
Additionally they publish an annual report.
In response to the annual report, they’ve 80 shares excellent which supplies them a market cap of round 280 mn EUR. Regardless of their working companies, they appear to have a variety of securities, participations and so on. Ebook Worth of fairness is twice the market worth.
I don’t know in regards to the background of the Group, however general this appears to be like fairly fascinating. If time permits, I might wish to digg deeper right here. “Watch”.
117. Messer Belgium (Knowledgeable MArket)
Undecided if that is part of the Messer Industrial Gases group, however this inventory hasn’t traded in any respect in response to the listing. “Move”.
118. Commerciale Belge (Knowledgeable Market)
Right here Euronext has a minimum of an outline: “Compagnie Commerciale Belge is an funding firm that makes a speciality of the acquisition of shares in unlisted corporations. On the finish of 2014, the corporate holds 45.12% of Belreca.” Final commerce was in 2019. “Move”.
119. Infrabel (Knowledgeable Market)
This Knowledgeable market inventory traded final in February 2024. In response to Wikipedia, this appears to be the Authorities owned Railway firm. They really situation annual studies and even made a revenue in 2022:
However investing with a Authorities isn’t my sort of factor, “go”.
120. Cie Bois Sauvage
Bois Sauvage is a 436 mn EUR market cap Holding firm that I’ve owned prior to now. The corporate owns companies in fairly numerous sectors, the most important lately being (excessive finish) Chocolate (63% of NAV), Actual property, a stake in a German Non-public Financial institution (Berenberg) and different pursuits.
That is the NAV calc from the 2023 annual report:
What makes the inventory clearly fascinating is that it trades at a reduction of > 50% to the NAV. For the final couple of months, the share worth suffered, not least due to the excessive worth of Cocoa that’s clearly a difficulty for Chocolate associated companies.
The P&L is noisy as losses within the securities portfolio (Umicore) are booked via P&L. As well as, the actual property publicity can also be possibly not the preferred asset class in the mean time.
Nearly all of the shares are held by the Paquot household. Man Paquot, who created the Group died in 2019 throughout a Safari.
On the plus aspect, the Chocolate enterprise truly owns Cocoa plantations in Ecuador and Bois Sauvage has resumed shopping for again shares and has no monetary web debt.
That is clearly one of the vital fascinating shares to this point. Due to this fact they go on “watch”.
