According to the daily Puls Biznesu both ComArch and Emax were approved by the Ministry of Education to submit offers in four tenders for the delivery of hardware (mainly PCs) for schools. The value of all tenders totals PLN 220m. The offers should be submitted in May and the deliveries completed by the end of August. The daily points to a big competition in these tenders and mentions at least five other potential bidders.
Although the contracts are attractive size wise, the margins would be thin. Given the current early stage of the tenders we do not expect this to be a price moving news. We reiterate our Buy recommendation for both Emax (fair value estimate of PLN 143 per share) and ComArch (fair value estimate of PLN 145.2 per share).