🌟 Sectoral Efficiency vs. Growth Potential: Key Insights for Romanian Companies 🚀 When analyzing Romanian companies listed on the Bucharest Stock Exchange, the intersection of efficiency and growth potential reveals some fascinating insights: 🔌 Energy Production & Utilities: Efficiency is the name of the game. With a strong Operating Margin and solid Return on Assets (ROA), this sector excels at maximizing profitability. However, high Debt-to-Equity ratios show that careful financial management is essential to sustain this momentum. 💼 Financial Services: Banks and financial institutions demonstrate their strength through impressive Return on Equity (ROE) and robust Net Interest Margins (NIM). Yet, watch for rising Cost-to-Income ratios, indicating potential pressures on operational efficiency. Still, the sector remains resilient in the face of evolving market conditions. 🏭 Manufacturing: A powerhouse of potential! High Inventory Turnover and solid Gross Margins highlight operational efficiency, but Capacity Utilization suggests there’s room to grow. This sector could be ripe for expansion, especially with the right strategic investments. Key Takeaways: Efficiency Wins in Energy & Manufacturing. Growth Potential still to be tapped in Manufacturing. Financial Services balancing profitability with rising costs. 📈 What does this mean for investors? Now is the time to look for strategic plays in sectors demonstrating both efficiency and growth potential. Identify companies with room for expansion while keeping an eye on cost management! Note: This post is for informational purposes only and does not constitute financial advice #RomanianEconomy #BVB #FinancialAnalysis #EnergySector #Manufacturing #FinancialServices #InvestmentInsights
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Kicking off our Publication Cycle for this quarter, is our Emerging Europe (EME) Desk, focusing on the Renewables and Energy (R&E) industry in Hungary! In this quarter's edition of Executive Briefs (EBs) by EME, we take a deep dive into Hungary's economy going into 2024, and what the 2nd half of the year has in store for the currently rapidly expanding economy. Hungary’s government has been doing well by turning the economy around positively from a technical recession in 2023 to a positive growth. The economy is seen to only be growing further with its hopes pinned on export recovery. Our desk consisting of Desk Director Aw Kai Rui and Associates Si Ning Lai and Tiffany Ang, lead us through a bullish analysis into the future of the Hungary economy amid positive macro indicators to leverage on favourable EU support. == This EB is part of a 3-part release by our EME desk covering the macro economy, industry, and company. Our Publication Cycles run at the end of every quarter for each of our 5 desks, with each quarter covering a different area of research spanning across - Fast Moving Consumer Goods (FMCG), Financial Institutions (FI), Industrial Corporate Groups (ICG), and Resource & Energy (R&E). Check out our other Publications here: https://lnkd.in/gwh9UESH If you wish to find out more, do reach out to us at sem@sa.smu.edu.sg or contact our President, Kai He Ong, or Vice-Presidents Eve Toh and Shang Ze Koh. #emergingmarkets #Hungary #EME #emergingeurope #resourceandenergy #executivebrief #SMUEM
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CEE Investment volume growth rates Investment volume growth in the Czech Republic is showing a positive trend, with a 5% increase in 2024 H1 compared to 2023 H1. In traditional sectors like office and retail, investors are leaning towards “Core+” and “Value-Add” opportunities. The industrial sector is also seeing significant activity, with some prime transactions recently closed or soon to be announced. If larger transactions currently in the pipeline conclude during the second half of 2024, the total investment volume for the year could potentially exceed £1.4 billion. While the market remains challenging, signs of optimism are beginning to emerge. Source: ARETE, data: Colliers #CzechRepublic #InvestmentTrends #CommercialRealEstate #PropertyMarket #OfficeRealEstate #RetailRealEstate #IndustrialRealEstate #CorePlus ARETE
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Shaping Investment Trends in Europe Investment activity in Europe is showing promising signs of recovery as we progress through 2024. The gap between sellers' and buyers' price expectations is narrowing, marking a positive shift after significant price drops over the past 18 months. Investment volume in Europe for the second quarter has surged by 19% compared to the previous quarter, and the rolling 4-quarters investment volume has increased by 1.3% from first quarter, marking the first positive improvement since Q3 2022. There has been a notable increase in high-leverage transactions, buoyed by improved conditions in the debt market. For the first half of 2024, investment volume in Europe is expected to exceed €74 billion. Several countries, including the Czech Republic and Poland, anticipate year-over-year growth in investment volume during this period. Investors are maintaining a selective approach, focusing on assets that promise the highest returns through robust profit growth and favourable supply and demand dynamics. Consequently, sectors such as logistics, multifamily, and hospitality are seeing strong investor interest. Source: ARETE, data: Savills #EuropeanInvestment #InvestmentTrends #RealEstateInvesting #MarketInsights #EconomicRecovery ARETE
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At €1.2 billion, the first quarter of 2024 saw CEE investment volumes decline by ca. 15% YoY. According to preliminary results, this is largely in line with European and Global results. Given the current conditions, particularly in relation to the continued elevated cost of debt, we expect 2024 volumes could reach up to €6.0 billion. Check our Q1 2024 CEE Investment Scene report here https://lnkd.in/dSmaZFdP
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Cristinel Dobrota, Deputy General Manager – Business Development, ROMCARBON SA: What we see today is the increase of import from outside EU for the products which does not observe same criteria like EU industry is obliged to follow. It is required immediate action to protect the European industry and to request following same rules for the commercial partners located outside EU, when it comes to sustainability and eco design. We are expecting a slight recovery in the second half of the year counting on the calming down of the turbulence in the energy system of Romania which have created additional problems in the local industry, knowing that for the industry, energy is an import cost element. For a leader, what matter the most, especially in 2024, is unity, we can see this at the small scale, in any company no matter how small or big it is, and at the large scale in big communities, like countries or EU. The message to our team it is “We must always be a TEAM”
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According to Oxford Economics, Central and Eastern European (CEE) industrial sectors should benefit from a pick-up in domestic and, later, external demand in H2 2024 and 2025. But the outlook is much less clear in the medium term, when major transformational requirements will be placed on the sector. OE baseline projects CEE industrial production will grow by an average rate of 2.8% in 2025-2030, above the 2.4% expected in Germany and the eurozone. Manufacturing productivity growth will outstrip Western Europe too. Nearshoring of production and shortening of the supply chain are the biggest opportunities for CEE industries. External demand and in particular but the capital-intensive green transition could benefit CEE manufacturers if they adapt to new technologies. CEE is still broadly competitive in terms of labour costs. Despite the fast catch-up in nominal labour costs over the last decade, they are still less than half of the EU average. But poor demographic outlook, biting labour shortages, and the ongoing fragmentation of global trade coupled with a rise of industrial policies are all headwinds for the CEE industries. #CEE #supplychain #nearshoring https://lnkd.in/dbg2kYTV
Europe: CEE industry faces medium-term challenges and opportunities
oxfordeconomics.com
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Find out how working capital fuels APAC high-Growth Corporates in the 2023-2024 Growth Corporates Working Capital Index: APAC Edition (a report from PYMNTS Intelligence, commissioned by Visa Commercial Solutions) https://lnkd.in/eq_Z_Uaz
Last year, APAC Growth Corporates had the second lowest rate of working capital solutions utilization across all five regions PYMNTS Intelligence studied. However, 2024 is a different story as 87% of APAC Growth Corporates plan to turn the page and use working capital solutions this year. ICYMI – watch Visa's Alan Koenigsberg & I breakdown what a Growth Corporate is, then download the 2023-2024 Growth Corporates Working Capital Index: APAC Edition (report from PYMNTS Intelligence, commissioned by Visa Commercial Solutions) here: https://lnkd.in/ezBTRPfD
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🚀 Quarterly Investment Update for the Czech Republic - Q2 2024 I recently reviewed Savills Research and here are the key takeaways: Market Highlights: Total Investment Volume: €511 million, up 68% year-on-year. H1 2024 Total Investment: €874 million, a 20% increase from H1 2023. Top Sectors: Retail: 31%, boosted by the sale of Arkády Pankrác. Offices: 24% Industrial Properties: 20% Residential Real Estate: 18% Economic Indicators: GDP Growth Prediction: 1.4% for 2024. Inflation Rate: 2.0% in June 2024. ČNB Interest Rate: 4.75% (2T REPO rate). 3M EURIBOR: 3.8%. Investment Yields: Prime Office Yield: Stable at 5.25%. Prime Industrial Yield: Down slightly to 5.20%. Prime Retail Yield: Down to 6.25%. Key Trends: Domestic Investors: 82% of total transactions. Cross-Border Investment: Up to 31% in Q2. Prague Market: 62% of Q2 investment volume. Market Outlook: 2024 Forecast: Total investment volume may exceed €1.5 billion. Investor Sentiment: Growing optimism and increasing activity. Stay tuned for more updates! 🌍📈 #Investment #RealEstate #CzechRepublic #MarketUpdate #SavillsResearch #Q22024 #Prague
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🔴 I attended the Capital Market Forum organized by Financial Intelligence, where I emphasized the significance of state-owned companies in Romania and their role in maintaining the stability of the national economy. While some state-owned companies are performing exceptionally well, it's important to highlight that they have paid dividends totaling approximately 7.6 billion lei this year, based on last year's results. Notably, five companies with high performance contributed around 87% of these dividends. 🔴 During the event, I also highlighted that the share of publicly-listed companies where the state is a majority or significant shareholder constitutes about half of the total market capitalization, which is significantly higher compared to OECD member states or at the European level. This indicates that the Romanian state has significantly contributed to developing the domestic capital market, so we should see more listings from private companies. 🔴 Moreover, Romania has made a firm commitment to list three additional state-owned companies by 2026, which will be added to the 19 companies already listed on the Bucharest Stock Exchange. These companies are performing well, adhere to the highest standards of corporate governance and transparency, and serve as reliable pillars of stability for the Romanian economy.
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🌍🔍 Our latest cycle phase analysis shows a turning point in industrial production for many developed economies! 🌟 Highlights: - France, Sweden, and Slovakia are leading Europe's recovery. - The US and UK are approaching or at cyclical troughs, poised for recovery in late 2024. - Germany, Belgium, and Netherlands are still contracting but decline is slowing. Growth is expected towards the end of 2024 and into 2025. With easing energy costs and anticipated rate cuts, we foresee a significant industrial upturn later this year, supporting growth into 2024. 🚀📈 Check out our full report to learn more: https://lnkd.in/ebiD2x_K #EconomicGrowth #IndustrialProduction #EconomicForecast #IndustryForecast
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