Description

Auto Partner SA

Auto Partner SA is a Polish auto parts distributor. It’s a fast-growing number 2 in the Polish auto parts market. It has good ROIC, trades at less than 10x P/E, significant insider ownership and lots of profitable growth and investment opportunities ahead. I don’t have any immediate catalysts but even if you think Polish stocks should be cheap given macro risks, you stand to get mid-teens returns from compounding.

Business

Auto Partner is a distributor of spare parts for cars, light commercial vehicles, and motorcycles in Poland and internationally. It was founded in 1993 by Aleksander Górecki (still in charge, and together with his wife Katarzyna Górecka a 47% shareholder). Auto Partner is headquartered in Bierun, Poland. It listed on the Warsaw exchange in June 2016. Here’s one of their videos showing their distribution warehouse: https://www.youtube.com/watch?v=17NEssWhp2k&ab_channel=AutoPartner

The Company provides:

• spare parts for various car systems - electrical , exhaust , suspension and braking etc for European, Japanese and Korean cars

• motorcycle and scooter parts and accessories

• car filters (oil, fuel and air)

• car oils and chemicals

• car accessories

• Workshop software and equipment

• Loyalty network of repair shops (MaXserwis) which offers discounts, branding training, software and leasing to members

The Company’s customers are repair shops and stores.