The expansion, which is still in the planning stage, will begin with the establishment of a subsidiary in the country, while potential acquisition targets in the region are also explored.

The H1 results published by Solwers on Friday were slightly below our forecasts, but this was mainly due to non-recurring items. We have made only minor downward revisions to our organic forecasts, while also taking into account the recent acquisitions. Against this background, the overall changes made to our forecasts were not large. In our view, the stock has clear upside, provided the company manages to improve its balance sheet efficiency and execute successful acquisitions in line with its strategy.

In principle, we are positive about the small transaction, as the acquisition target seems to be of high quality and we also consider investing Solwers’ hefty cash assets in acquisitions in line with the company’s strategy sensible from the point of view of efficient capital use. The transaction price was not disclosed, but we trust it was moderate considering Solwers’ strategy and previous acquisitions.