Unibep S.A. – Analytical Report

The financial results of the Unibep group in 2023 were the worst in history. However, we believe that the management board has drawn appropriate conclusions and has been implementing remedial actions for several months to avoid similar situations in the future. The group's order portfolio has been growing in recent months, and the company is more active in obtaining more profitable orders in road infrastructure. The management board plans to partially reduce the group's debt in the coming months, mainly through the sale of land properties. The development strategy for the coming years assumes greater emphasis on acquiring medium-sized contracts in the energy sector and expanding road and building construction beyond the current regions of operation. We expect relatively poor results in Q1'24, but we assume improvement from Q2'24. We forecast more significant increases in profits in 2025 and 2026. We set the target price per share at PLN 12.0 (previously - PLN 12.5).