code-coding-computer-data-574071

4iG

BSE: 4IG

HUF58092m market cap

HUF618 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

In March, 4iG announced two M&A deals and a bond issue. First was the acquisition of 70% of the shares of Spacenet, a Cisco Gold partner specialising in data centre infrastructure solutions. Secondly, on 25 March 4iG issued a HUF15.45bn (c €43m) 10-year bond bearing a 2.9% coupon. The proceeds from the issue will be used for domestic and regional expansion. Finally, on 29 March 4iG announced the conditional acquisition of DIGI Group, a leading Hungarian telecoms services provider (FY20 revenues HUF70bn (c €195m), adjusted EBITDA HUF19bn (c €53m)). This acquisition will make 4iG one of the leading Hungarian telecoms services companies when it completes in Q321.

Y/E Dec
Revenue (HUFm)
EBITDA (HUFm)
PBT (HUFm)
EPS (fd) (HUF)
P/E (x)
P/CF (x)
2019A 41129.0 4075.0 3314.0 30.77 20.1 13.9
2020A 57284.0 5051.0 4155.0 35.54 17.4 11.3
2021E 62076.0 5614.0 4632.0 42.38 14.6 10.2
2022E 70261.0 6955.0 5883.0 53.20 11.6 8.2
Industry outlook

Management anticipates continuing consolidation-driven growth, with organic growth supplemented by market share gains and accelerating market consolidation. Management is positioning the group to benefit from high-demand new technologies including digitalisation, blockchain, deep learning, artificial intelligence, industry 4.0, cyber security and fintech.

Last updated on 12/05/2021
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Sector
TMT
Share price graph
Balance sheet
Forecast net cash (HUFm) 2404
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.8) (2.8) 20.5
Relative* (6.7) (4.5) (4.1)
52-week high/low HUF707.0/HUF505.0
*% relative to local index
Key management
Csaba Gergely M&A director
Peter Fekete Advisor to the chairman