The Polish central bank has announced a PLN 200m tender for building new Treasury and IT centre. Apart from the participation of construction companies, IT companies should also grasp a sizeable portion of the contract. The central bank wants the IT centre to be equipped with the intelligent building systems and broad security systems. We believe that two companies: ABG Ster-Projekt and ComputerLand could be participating in the tender. ABG Ster-Projekt via former Ster-Projekt has the competences of building secure data centers (e.g. TPSA or border protection guards). ComputerLand, on the other hand, has very good relationships with the central bank, confirmed by many years of cooperation by the central banks’ IT systems. Furthermore, the central bank is one of CL’s most important customers from the banking and finance sector. At the same time, given the central bank’s restrictions on tender participants – 3Y average annual sales not lower than PLN 200m and PLN 40m of credit worthiness – exclude Comp, also specializing in security systems – from the tender. The tender bids are to be posted till May 10 and the contract is to be realized in two years time.
We believe the news could have a slightly positive impact on ComputerLand that we find a probable winner. We maintain our Hold rating for ComputerLand with a fair value estimate of PLN 102.7 per share, Sell rating on ABG Ster-Projekt with a fair value estimate of PLN 8.0 per share and Sell for Comp with a fair value estimate at 74.8 per share.