code-coding-computer-data-574071

4iG

BSE: 4IG

HUF57340m market cap

HUF610 last close

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.

Investment summary

As part of its ongoing buy-and-build strategy, 4iG has announced the acquisition of TR Consult (TRC), a specialist IT consultancy focused on the cybersecurity sector. Based in Budapest, TRC addresses a corporate client base in the broader Central Eastern European (CEE) region, as well as in Hungary. TRC was founded in 2007 and is well known to management, having worked with 4iG for the last 10 years. In FY18, TRC had total revenues of c €2m (HUF0.7bn). The purchase price was not disclosed.

Y/E Dec
Revenue (HUFm)
EBITDA (HUFm)
PBT (HUFm)
EPS (HUF)
P/E (x)
P/CF (x)
2018A 14007.0 842.0 219.0 1.11 549.5 N/A
2019A 41129.0 4075.0 3344.0 31.87 19.1 8.1
2020E 49083.0 4152.0 3358.0 31.84 19.2 16.7
2021E 58881.0 5631.0 4794.0 44.93 13.6 12.4
Industry outlook

Management anticipates consolidation-driven growth of over 20% in the medium term, with organic growth supplemented by market share gains and accelerating market consolidation. Mmanagement is positioning the group for growth by offering high-demand new technologies including digitalisation, blockchain, deep learning, artificial intelligence, industry 4.0, cyber security and fintech.

Last updated on 13/07/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (HUFm) 4445
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (7.2) 30.6 (43.9)
Relative* (1.7) 24.8 (35.4)
52-week high/low HUF1084.0/HUF296.0
*% relative to local index
Key management
Csaba Gergely M&A director
Peter Fekete Advisor to the chairman