Latest comment from financial markets

CZGB Auction Preview: Repeated CZK1.0bn floater auction

18/06/2024 11:19

Issuance activity: Tomorrow, MinFin is scheduled to auction CZK1.0bn of 2043 floater. This is the only floater offered so far this year. In general, CZGBs floaters play a rather minor role, accounting for around 10% of marketable state debt. Their share may even decrease this year, as CZK27.7bn of floaters will be redeemed in October, while 'only' CZK11.3bn of 2043s have been sold so far this year.

Autor: Jaromír Gec Show more

Latest comment from the equity market

Company notes: CEZ: MinFin did not submit a counterproposal, dividend of CZK52 will be voted on at the AGM

18/06/2024 11:08

The Ministry of Finance, as the executor of the shareholders' rights on behalf of the State, has not submitted a counterproposal for the payment of the dividend to the Annual General Meeting. No other counterproposal meets the conditions (see www.cez.cz). Therefore, only the proposal of the Management Board will be put to vote. The CEZ Board of Directors has proposed to pay a dividend of CZK52 on the profit for the year 2023. This represents a gross yield of +5.5%. The payout ratio is 80% of the adjusted net profit. This is the upper limit of the current dividend policy for a payout ratio of 60-80%.

In our forecasts, we assumed that MinFin would make a counterproposal to distribute all of last year's profit. This would mean CZK65 per share, or a gross yield of +6.9%. We expected a counterproposal for a higher dividend, so this development is a disappointment for us. It could also be disappointing for some investors. We might see a negative market reaction today.

The AGM at which the dividend must be approved by the shareholders will be held on Monday, June 24, 2024 at 9:00 a.m. The record date for the payment of the dividend is proposed to be June 28. This means that the last trading day for the right to receive a dividend from last year's profit should be Wednesday, June 26.

Autor: Bohumil Trampota Show more