10. Prospectiuni (ticker: PRSN) - ROE 39%

10. Prospectiuni (ticker: PRSN) - ROE 39%Prospectiuni Bucharest (ticker: PRSN) held by Ovidiu Tender has a potential ROE (return on equity) of 39%, according to the analysis carried out by Target Capital. The 12-month price target is 0.332lei/share.

Prospectiuni reported a net profit of 22.27 million lei (€5.26 mln) in the first six months t his year, a 12-fold increase from the same period of last year, after 86% boost in sales.


9. Aerostar (ticker: ARS) ROE 42%

Aircrafts parts manufacturer Aerostar Bacau (ticker: ARS) has a potential ROE of 42% and a 12-month price target of 0.803lei/share.

ARS reported net profit of 1.36 million lei (€322,000) in the first six months, up 48% from year-ago period.

8. Zentiva (ticker: SCD) ROE 48%

Drug company Zentiva Romania is recommended as one of the companies of having strong records of returning capital to their investors. SCD shares have a price target of 0.93lei/share and a potential ROE of 48%.

During August 12 – September 22, the company carried an initial public offering, in which Zentiva Romania’s majority shareholder Sanofi Aventis Europe acquired 3.4% equity for 9.9million lei. Sanofi’s stake in Zentiva currently stands at 78%.

In the first half, SCD shares led the bull run at Bucharest Stock Exchange, with 132.3% growth.

7. Azomures (ticker: AZO) ROE 50%

Fertilizer supplier Azomures (ticker: AZO) has a “buy” rating and a 12-month price target of 0.45 lei/share. Potential ROE is 50% according to Target Capital’s analysis.

Azomures’ sales fell 45% in the first half this year, to 326.65 mln lei (€77.22mln), while net profit crashed to 16.82 mln lei (€3.98 mln).

6. Argus and Cemacon (ticker: UARG; CEON) ROE 54%

Producer of vegetable oil and fodder grits, Argus Constanta (ticker: UARG) has a potential ROE of 54% and 12-month price target of 1.97lei/share.

UARG reported first-half loss of 4.71mln lei (€1.11mln), from 23.4 mln lei net profit a year-ago period, as sales fell 41%.

Building material supplier Cemacon Zalau (ticker: CEON) has a potential ROE of 54% and a 12-month price target of 0.14lei/share.

5. Avicola Buzau (ticker: AVZU) ROE 73%

Manufacturer and distributor of poultry products, Avicola Buzau (ticker: AVZU) has a potential ROE of 73% and a price target of 0.088 lei/share.

The company reported first-half loss of 385,000 lei (€91,000), ten-fold lower from 4.1mln lei loss a year ago period, following 16% cut in spending.

4. Impact (ticker: IMP) ROE 76%

Real estate developer Impact Developer & Contractor (ticker: IMP) has a potential return of 76% and a 12-month price target of 0.967/share.

The developer of Greenfielf homebuilding in Bucharest reported a pre-tax profit of 3.27 mln lei in first half, 3% above forecasts. The company’s debt load narrowed by around 30% from 244 mln lei in 2008, to 174 mln lei at the end of June 2009, short-term debt accounting for 25%.

3. Nutricom (ticker: NUTE) ROE 81%

Grain fodder producer Nutricom Oltenia (ticker: NUTE) has a potential ROE of 81% and a 12-month price target of 1.12 lei/share.

“Buy” rating and high price target reflects the first-half strong performance and clean balance sheets of the grain fodder producer.

Jan-Jun data show sales increased by 24% year-on-year to 75.8 mln lei (€19.6 mln). In the same period, profit stood at 4.16 mln lei (€0.98 mln), nearly 12-fold higher than a year earlier.

2. Upet (ticker: UPET) ROE 91%

The promising outlook for gradual recovery in global demand of oil equipment reflects in Upet Targoviste (ticker: UPET) shares’ “buy” rating and 12-month price target of 3.02lei/shares. The issuer’s potential ROE is 91%.

UPET reported first-half loss of 5.4 mln lei (€1.27 mln) from 14mln lei profit in the same period of last year, due to 58% decrease in sales.

1. Ecopack (ticker: AMCP) ROE 111%

Packaging manufacturer Ecopack Ghimbav (ticker: AMCP) seems to be the best pick at the moment, with a potential ROE of 111% and a 12-month price target of 100 lei.

AMCP reported last year a net profit of around 3 mln lei (€812,500), up 92% from 2007, after 12% increase in sales.