WOOD Flash – Duna House: 2Q23 results – reaches EBITDA of EUR 5m in 1H23, despite adverse high-rate backdrop
The mortgage and transaction market in Hungary and Poland has turned the corner, and we seem to be past the bottom. In Italy, the high rates continue to weigh on new mortgage origination; however, even as the volume of new mortgage loans continues to drop by around 20-30% yoy, Duna House (DH) is on track to reach materially higher EBITDA in Italy than we were expecting originally in 2023E. After distributing a HUF 108 DPS in June this year (a 26% yield on the share price before the dividend announcement), the company trades at 8-10x EV/EBITDA and 7-9x P/E, on this year’s earnings, as implied by the guidance, which was reiterated. The better operating environment should drive stronger earnings from 2H23E-onwards. Duna House continues to sell apartments in the Forest Hill project – the cash proceeds could allow the company to pay yet another large dividend, or could be used for M&A.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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