Market CapHUF86694.6m

Last Close HUF840

4iG is one of the leading IT services and systems integrators in Hungary, working with public sector clients, large corporates and SMEs. Management is focused on becoming the market leader in Hungary by FY22 as well as targeting expansion in Central and Eastern Europe (CEE).

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Investment summary

Driven by a combination of organic growth and M&A, 4iG reported H121 net revenues of HUF32.1bn, 59% y-o-y growth. Gross profit rose by 65% y-o-y to HUF10.2bn with EBITDA rising 30% y-o-y to HUF1.8bn, as EBITDA margins fell to 5.5%. 4iG looks on track to meet our FY21e revenue estimate. 4iG also has a full M&A pipeline, with five deals still expected to complete in H221, DIGI Group, Spacecom, Antenna Hungária, Telenor Montenegro and TeleGroup, which will transform the group. We estimate that, collectively, these deals will deliver run-rate EBITDA in excess of c HUF88bn (c US$300m) but we are not yet able to update our estimates for these acquisitions.

Y/E Dec
Revenue (HUFm)
EPS (fd) (HUF)
P/E (x)
P/CF (x)
2019A 41129.0 4075.0 3314.0 30.77 27.3 10.6
2020A 57300.0 5047.0 4175.0 36.09 23.3 21.5
2021E 82710.0 8916.0 7254.0 55.88 15.0 13.2
2022E 93048.0 9903.0 8511.0 63.67 13.2 11.3
Industry outlook

4iG’s strategy is focused on three pillars: IT services; telecoms & infrastructure; and space & defence. The group is targeting market leadership in Hungary, but recent acquisitions point to an increasingly diversified regional footprint in FY21 and FY22, with organic growth supplemented by M&A.

Last updated on 20/01/2022
Content on 4iG
4iG – M&A set to launch 4iG into orbit
TMT | Update | 13 October 2021
4iG – Spacecom, 4iG shooting for the stars
TMT | Flash note | 21 June 2021
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Share price graph
Balance sheet
Forecast net debt (HUFm) 5672
Forecast gearing ratio (%) 31
Price performance
Actual (4.2) (7.7) 32.7
Relative* (7.7) (4.1) 11.8
52-week high/low HUF1094.0/HUF598.0
*% relative to local index
Key management
Gellért Jászai Chairman & CEO
Csaba Gergely M&A director
Peter Fekete Advisor to the chairman