Duna House Group - Avanti Ragazzi
We increase our TP to HUF 800 per share from HUF 560 per share with BUY
recommendation which is the combination of roll over of our previous price target,
incorporating the Italian operation and improvement in CF from the Forest Hill development
project .The new target price implies 11x P/E’22 and 13x P/E’23 which should be compared
to the IPO pricing of 11.5x P/E 6 years ago. However, today’s DHG is larger in profit and
more diversified geographically than 6 years ago.
DHG is a typical growth story. Mgmt built out the Hungarian loan intermediation
segment in 15 years, entered the Polish market in 2016 with negligible market share and 6
years later they have around 4-5% market share and generate ca HUF 500 mn EBITDA p.a.
This modus operandi is what we could expect from mgmt. in Italy with the exception that
the Italian assets now could generate ca. HUF 1.2 bn profit with 1-2% market share in loan
intermediation.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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