The Rear-View Mirror – EME markets: EME indices mostly in the red in April

EME Equity Market – April 2025 EME indices mostly in the red in April, Hungarian BUX and Greek ASE the exceptions. The MSCI EM Europe Index declined by 2.0% mom in EUR terms, but was up 2.9% mom in USD terms in April. The Hungarian BUX was the best performer, followed by the Greek ASE index (+3.5% and 0.8% mom in EUR terms, respectively). There was a slight decline in the Polish WIG20, and more pronounced deteriorations in the Romanian BET and Czech PX indices (-0.6%, -2.0% and -4.2% mom in EUR terms, respectively). The Turkish ISE30 Index was, again, the worst performer (-12.0% mom in EUR ter...

ODDO BHF SECURITIES LARGE CAPS MORNING NEWS 04/30/2025

ODDO BHF SECURITIES LARGE CAPS MORNING NEWS 30/04/2025

Promising start for the year, FY guidance reiterated

Magyar Telekom has reported strong results for the first quarter and beat market consensus estimates. First quarter results are promising to keep the full year guidance even with the lack of inflation-based fee adjustment. Such that management has reiterated its full year guidance, expecting HUF 190bn adjusted net profit and HUF 180bn free cashflow.

Positive financial impact was underestimated in Q1

Richter posted its Q1/25 results today morning. The Company beat analysts’ estimates in terms of net profit, while revenues and clean EBIT matched expectations. On the bottom line, the beat was attributed to significant FX gains of HUF 11bn (o/w HUF 14.0bn was unrealized). Richter generated an outstanding FCF of HUF 60bn in Q1 despite that we expected that the normalization in payables may drag on this figure. The management reiterated its guidance as they see both revenues and clean EBIT to grow by around 10% this year. Also noteworthy that foreign investors dumped Richter shares in Q1 at rec...

Marginal beat in Q1 driven by higher revenues

OTP’s reported net income came to HUF 189bn in Q1/25, beating the consensus estimate of HUF 184bn by 3% due to better-than-expect total income. 2025 guidance has been left fully unchanged by the management, but the current consensus may not reflect the full potential for 2025. Our 2025 net profit estimate is 9% above the consensus. We roll over to Jun-26 and raise our TP by HUF 30,955, implying a 26% total return upside potential including the dividends after 2024 (c. HUF 1000 adj. for treasury shares) and 2025 profit (HUF 1,252). We also take into consideration that OTP may buy back own shar...