Orbis has postponed the publication of its 2005 annual statement from March 30 to May 26, saying that it needs more time to address issues relating to the transition to IFRS. The report has been eagerly awaited as Orbis was expected to reveal more information on its real property portfolio. The hidden value of real property has become increasingly visible in the company valuation, after last year’s sale of Wanda Hotel in Cracow revealed a substantial understatement of the property value in the company’s books.
We reiterate our Sell rating on the stock with our fair value estimate of PLN 40.3, as we believe that there is no clear indication on how and when this hidden value would be released.