New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bulgarian stocks, typically moving 9.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 44% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.9% average weekly change). Market cap is less than US$100m (€40.6m market cap, or US$46.9m). Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €12.50, the stock trades at a trailing P/E ratio of 78.8x. Average trailing P/E is 19x in the Chemicals industry in Europe. Total loss to shareholders of 30% over the past three years. Reported Earnings • Feb 03
Full year 2025 earnings released: EPS: лв0.31 (vs лв1.50 loss in FY 2024) Full year 2025 results: EPS: лв0.31 (up from лв1.50 loss in FY 2024). Revenue: лв355.2m (up 31% from FY 2024). Net income: лв813.0k (up лв4.68m from FY 2024). Profit margin: 0.2% (up from net loss in FY 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year whereas the company’s share price has fallen by 21% per year. Reported Earnings • Aug 30
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: лв77.8m (up 100% from 2Q 2023). Net income: лв8.51m (up лв22.3m from 2Q 2023). Profit margin: 11% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Reported Earnings • Jun 04
First quarter 2024 earnings released First quarter 2024 results: Revenue: лв55.8m (down 48% from 1Q 2023). Net loss: лв5.77m (loss narrowed 41% from 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. New Risk • Apr 11
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Bulgarian stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Market cap is less than US$100m (лв47.8m market cap, or US$26.2m). Reported Earnings • Mar 03
Full year 2023 earnings released: лв15.12 loss per share (vs лв27.09 profit in FY 2022) Full year 2023 results: лв15.12 loss per share (down from лв27.09 profit in FY 2022). Revenue: лв294.5m (down 53% from FY 2022). Net loss: лв39.1m (down 156% from profit in FY 2022). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. New Risk • Jan 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bulgarian stocks, typically moving 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (7.5% average weekly change). Market cap is less than US$100m (лв73.2m market cap, or US$40.8m). Reported Earnings • Nov 30
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: лв75.1m (down 19% from 3Q 2022). Net loss: лв201.0k (down 143% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 31
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: лв39.3m (down 70% from 2Q 2022). Net loss: лв13.8m (down 223% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. New Risk • Jul 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bulgarian stocks, typically moving 6.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (6.0% average weekly change). Market cap is less than US$100m (лв81.5m market cap, or US$45.2m). Upcoming Dividend • Jun 27
Upcoming dividend of лв5.00 per share at 19% yield Eligible shareholders must have bought the stock before 04 July 2023. Payment date: 17 August 2023. The company is not currently making a profit but it is cash flow positive. Trailing yield: 19%. Within top quartile of Bulgarian dividend payers (7.3%). Higher than average of industry peers (4.2%). Reported Earnings • Jun 02
First quarter 2023 earnings released First quarter 2023 results: Revenue: лв108.9m (down 59% from 1Q 2022). Net loss: лв9.72m (down 115% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • May 31
Neochim AD, Annual General Meeting, Jun 21, 2023 Neochim AD, Annual General Meeting, Jun 21, 2023, at 12:00 E. Europe Standard Time. Reported Earnings • Mar 01
Full year 2022 earnings released: EPS: лв30.70 (vs лв18.04 in FY 2021) Full year 2022 results: EPS: лв30.70 (up from лв18.04 in FY 2021). Revenue: лв646.0m (up 83% from FY 2021). Net income: лв79.4m (up 70% from FY 2021). Profit margin: 12% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 30
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: лв105.7m (up 124% from 3Q 2021). Net income: лв464.0k (up лв6.22m from 3Q 2021). Profit margin: 0.4% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 122% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 1 highly experienced director. No independent directors (7 non-independent directors). Deputy Chairperson Elena Shopova was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Jun 27
Upcoming dividend of лв5.00 per share Eligible shareholders must have bought the stock before 04 July 2022. Payment date: 17 August 2022. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 9.1%. Within top quartile of Bulgarian dividend payers (7.0%). Higher than average of industry peers (3.8%). Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment deteriorated over the past week After last week's 23% share price decline to лв44.00, the stock trades at a trailing P/E ratio of 2.3x. Average trailing P/E is 14x in the Chemicals industry in Europe. Total returns to shareholders of 122% over the past three years. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). Deputy Chairperson Elena Shopova was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment improved over the past week After last week's 28% share price gain to лв50.50, the stock trades at a trailing P/E ratio of 2.6x. Average trailing P/E is 14x in the Chemicals industry in Europe. Total returns to shareholders of 107% over the past three years. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improved over the past week After last week's 18% share price gain to лв40.00, the stock trades at a trailing P/E ratio of 2.1x. Average trailing P/E is 14x in the Chemicals industry in Europe. Total returns to shareholders of 50% over the past three years. Reported Earnings • Mar 04
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: лв19.50 (up from лв5.61 in FY 2020). Revenue: лв354.0m (up 60% from FY 2020). Net income: лв50.4m (up 248% from FY 2020). Profit margin: 14% (up from 6.5% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 112% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 15% share price decline to лв36.40, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 14x in the Chemicals industry in Europe. Total returns to shareholders of 28% over the past three years. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment improved over the past week After last week's 47% share price gain to лв33.00, the stock trades at a trailing P/E ratio of 4.8x. Average trailing P/E is 16x in the Chemicals industry in Europe. Total returns to shareholders of 8.3% over the past three years. Announcement • Jan 13
Daniel Rumenov Gargov acquired a 5.12% stake in Neochim AD (BUL:NEOH) from Agrofer International Establishment. Daniel Rumenov Gargov acquired a 5.12% stake in Neochim AD (BUL:NEOH) from Agrofer International Establishment on January 12, 2022. Post completion, Agrofer International Establishment hold 2.56% stake of Neochim AD.
Daniel Rumenov Gargov completed the acquisition of a 5.12% stake in Neochim AD (BUL:NEOH) from Agrofer International Establishment on January 12, 2022. Reported Earnings • Nov 30
Third quarter 2021 earnings: Revenues in line with analyst expectations Third quarter 2021 results: Revenue: лв48.5m (up 120% from 3Q 2020). Net loss: лв5.76m (loss narrowed 45% from 3Q 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 29
Second quarter 2021 earnings released The company reported a mediocre second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: лв79.9m (up 40% from 2Q 2020). Net income: лв10.9m (down 48% from 2Q 2020). Profit margin: 14% (down from 37% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment deteriorated over the past week After last week's 16% share price decline to лв33.60, the stock trades at a trailing P/E ratio of 6x. Average trailing P/E is 26x in the Chemicals industry in Europe. Total loss to shareholders of 27% over the past three years. Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment improved over the past week After last week's 16% share price gain to лв40.00, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 25x in the Chemicals industry in Europe. Total loss to shareholders of 13% over the past three years. Is New 90 Day High Low • Mar 13
New 90-day high: лв31.80 The company is up 33% from its price of лв24.00 on 11 December 2020. The Bulgarian market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 8.0% over the same period. Is New 90 Day High Low • Feb 24
New 90-day high: лв31.00 The company is up 30% from its price of лв23.80 on 19 November 2020. The Bulgarian market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 6.0% over the same period. Reported Earnings • Feb 02
Full year 2020 earnings released: EPS лв6.01 (vs лв4.82 loss in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: лв226.5m (down 12% from FY 2019). Net income: лв15.5m (up лв28.0m from FY 2019). Profit margin: 6.9% (up from net loss in FY 2019). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improved over the past week After last week's 16% share price gain to лв29.20, the stock is trading at a trailing P/E ratio of 8.1x, up from the previous P/E ratio of 7x. This compares to an average P/E of 26x in the Chemicals industry in Europe. Total return to shareholders over the past three years is a loss of 44%. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improved over the past week After last week's 18% share price gain to лв29.20, the stock is trading at a trailing P/E ratio of 8.1x, up from the previous P/E ratio of 6.9x. This compares to an average P/E of 25x in the Chemicals industry in Europe. Total return to shareholders over the past three years is a loss of 45%.