HUF56964m market cap

HUF606 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 its H120 results, 4iG reported net revenues of HUF20.2bn, an increase of 39% on H119. EBITDA increased 35% to HUF1.4bn, with EBITDA margins falling slightly from 6.9% to 6.7%. H120 net income rose 34% from H119 to HUF0.8bn, with EPS of HUF8.5 (H119: HUF6.3). As well as the impact of COVID-19, the weaker margins in H120 also reflect increased personnel costs, which almost doubled to HUF3.9bn (H119: HUF2.0bn), with headcount increasing to 644 (FY19: 594). 4iG’s H120 revenues, together with an FY20 order book of HUF20.8bn, mean management continues to hold its 20% revenue growth guidance for FY20 ahead of the seasonally stronger H2. We maintain our estimates.

Y/E Dec
Revenue (HUFm)
P/E (x)
P/CF (x)
2018A 14007.0 842.0 219.0 1.11 545.9 N/A
2019A 41129.0 4075.0 3344.0 31.87 19.0 8.1
2020E 49083.0 4152.0 3358.0 31.84 19.0 16.6
2021E 58881.0 5631.0 4794.0 44.93 13.5 12.3
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. Management 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 22/09/2020
Register to receive research on 4iG as it is published
Share price graph
Balance sheet
Forecast net cash (HUFm) 4445
Forecast gearing ratio (%) N/A
Price performance
Actual (6.2) (5.5) (36.2)
Relative* 4.7 8.9 (18.8)
52-week high/low HUF936.0/HUF296.0
*% relative to local index
Key management
Csaba Gergely M&A director
Peter Fekete Advisor to the chairman