QUEST HOLDINGS | Instilling confidence
Continuing to execute well – Quest’s 9M results affirmed that the group is on solid footing, with growth remaining robust across all segments. Group continuing revenues shaped 40% higher yoy at €637m, with Q3 showcasing moderating – albeit still very strong – trends (revenues +26% from >40% in H1). Operating profit growth was also healthy, with 9M EBITDA +35% yoy and Q3 +15%. Net profit from continuing operations settled at €29.7m in the 9M period, markedly higher yoy, and was further bolstered by the capital gain related to the sale of Cardlink, leading to a reported net profit near €110m (from both continued and discontinued ops).Minor changes to forecasts; EBIT CAGR in 2021-24e in the mid-to-high single digits – We have made minor changes to our forecasts, which are now recalibrated to deconsolidate Cardlink and account for the supply chain frictions anticipated in Q4. We now expect FY’21 EBITDA at €59m (ex-Cardlink), indicating Q4’21e negative growth of -5% yoy which looks reasonable, given a strong comparable yoy. Looking ahead, we expect c9% EBITDA growth in 2022 assuming that challenges affecting supply (expected to impact H1’22) will gradually moderate through H2’22, with demand across all the group’s subsidiaries staying robust. Overall, we expect c13% EBITDA CAGR over 2020-23e, underpinned by the digitization push, strong demand for IT products and elevated e-Commerce penetration.
Cardlink sale completed; c€45m return to shareholders, further war chest built – Quest successfully completed the sale of its subsidiary Cardlink in Q3’21 for c€89m, significantly boosting its liquidity and switching to an €81m net cash position as of Sep 2021. As such, mgt has decided to return half of the proceeds to shareholders in the form of a special dividend (€1.25/share payable in Feb’2022). Balance sheet optionality has thus become more prevalent, in the light of the group’s ample liquidity. Given the solid track record, we reiterate our view that Quest is well placed to deliver additional shareholder value through either heftier cash returns or M&A.
Valuation – Quest shares are c87% above pre-pandemic levels, substantially outperforming Greek non-financials and peers over the last 2 years. From a valuation perspective, we believe the current valuation of
Quest Holdings SA. Quest Holdings SA, formerly Info-Quest SA, is a Greece-based information technology (IT) and telecommunication solutions provider. Its main activities include the digital technology industry, with activities across the entire spectrum of the ICT market, from the manufacture and distribution of products to the design, application and support of Integrated IT Solutions for large organizations in the private and public sectors. Quest Holdings coordinates its activities in this market via the strongest companies in the field: Info Quest Technologies, Uni Systems and iSquare. In the Green Energy sector, the Group implements large investment projects on electricity production from renewable sources with licensed power exceeding 400 MW regarding more than 30 wind and photovoltaic parks. In this market, Quest Holdings is active through Quest Energy and its subsidiaries. At the same time, the Group is also active in the Courier Services sector, through ACS.
Eurobank Equities is a Greek-based firm offering research, sales and trading services to institutional, corporate and private clients. The company is wholly owned by Eurobank, one of the 4 systemic banks in Greece.
Eurobank Equities S.A. offers a comprehensive suite of investment products—including equities, derivatives, bonds, and mutual funds—serving over 15,000 private, corporate, and institutional clients in Greece and internationally.
The firm maintains a dominant position in the Greek capital markets, consistently ranking among the top brokers in terms of market share and is repeatedly recognised in major institutional investor surveys as one of the leading brokers and top Equity Research Providers for Greece.
Its multi-awarded Research Division delivers timely insights and fundamental coverage on almost 40 listed companies—representing over 90% of the ATHEX’s market capitalisation and traded value.
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