The true potential

• We adjust our model with the recent development, namely the better-than-expected results (+23% / +41% / +40% for ‘23/’24/’25) and withdrawal of utility tax – we had expected that the extra profit tax would be revoked in 2025. As a result, we increase our TP significantly to 950 HUF/share. As a sanity check to our target price, please use DDM model and assume a DPS of ca. HUF 110 (total distribution) as perpetuity, then discount it back to 2023.

• Thanks to the better underlying, we forecast an adjusted net profit of HUF 81/115 /140 bn (assuming 12% CPI indexation in ’24) or an EPS of HUF 88/122/153 for ‘23/’24/’25, respectively. We note that we incorporated the lower number of shares into the model because of the annual SBB program of HUF 15 bn, which we continue to assume. Consequently, the total shareholder remuneration is expected to reach HUF 61 / 86 / 108 per share from the profit of ‘23 / ‘24 / ’25, implying 10.9% / 15.1% / 19.0% yield, respectively. Please note that we used the middle of the guided range (60 – 80%) for the calculation.