DUNA HOUSE GROUP
Investor update
29 April 2024
CONSUMER FINANCE & REAL ESTATE SOLUTIONS Listed on Budapest Stock Exchange Premium category
Investment story
COMPELLING EQUITY CHARACTERISTICS
ATTRACTIVE MARKET | DHG AS A WELL POSITIONED | CONTINOUS GROWTH AT | ||
COMPANY | ATTRACTIVE VALUATION LEVELS | |||
- Stable real-estate and loan commission rates
- Market knowledge and expertise of over 20 years with a committed
- Devotion to increase shareholder value and liquidity
management team
• Access to markets: population of 120 | • Cash producing business, the core: | |||
million, over 1 million real estate | • | Leading regional role, truly diversified | services rendered | |
transactions | operations | |||
• | Significant cash inflow from RE | |||
• Markets recovering from fall after | • | Counter-cyclical business model | developments | |
inflation and interest rate hikes | ||||
• | International operation with proven | • | Continuous growth and committed | |
• Market share of brokers building up in | M&A capabilities | dividend payout | ||
Italy | ||||
• | BB-/Stable credit rating |
3
Investment story
WE ARE THE LEADING RESIDENTIAL REAL ESTATE + LOAN BROKER IN CEE
WE SERVE PEOPLE. REAL ESTATE IS OUR PASSION
4
2.0bn€
14k
110
300+
4k
86m
Presence in 4 countries: Hungary, Poland, Czech Republic and Italy
Brokered loan volume per year
Successful real estate transaction per year
Financial institution partners
Real estate offices in 4 countries
No of salespersons
Listed on Budapest Stock Exchange with EUR 86m market cap
4
3.6X EBITDA GROWTH SINCE IPO | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales revenue & EBITDA of DHG (m HUF) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues - HUFm | |||||||||||||||||||||||||||||||||||||||||||||||||||||
32 819 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
30 265 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
30 000 | 4 726 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
3 267 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HUF | 25 000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
20 000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
14 462 | MyCity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
840 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
million | 15 000 | 28 093 | |||||||||||||||||||||||||||||||||||||||||||||||||||
7 891 | 9 068 | 27 | 26 998 | ||||||||||||||||||||||||||||||||||||||||||||||||||
10 000 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
7 985 | Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4 791 | 4 685 | 1 952 | 152 | 13 622 | |||||||||||||||||||||||||||||||||||||||||||||||||
5 000 | 7 | 6 | 6 033 | 7 739 | 9 041 | ||||||||||||||||||||||||||||||||||||||||||||||||
4 784 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4 678 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
EBITDA level - HUFm | |||||||||||||||||||||||||||||||||||||||||||||||||||||
5 000 | 4 449 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4 000 | 986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
3 160 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HUF | 3 000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2 018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2 214 | 819 | MyCity | |||||||||||||||||||||||||||||||||||||||||||||||||||
million | 2 000 | 1 558 | Services | ||||||||||||||||||||||||||||||||||||||||||||||||||
1 000 | 878 | 951 | 820 | 1 189 | 50 | 2 460 | 3 463 | 2 341 | Total | ||||||||||||||||||||||||||||||||||||||||||||
880 -2 | 1 023 -72 | 1 394 | 1 139 | 1 661 | -103 | -442 | |||||||||||||||||||||||||||||||||||||||||||||||
0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 000 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Note: Italian subsidiaries are consolidated since 1 April 2022, their Q1 2022 revenues and EBITDA are excluded from the financials presented in the graphs.
Investment story
6.8X
Group
revenue
5.9x
Service revenue
3.6X
group
EBITDA
2.7X
Service
EBITDA
5
Investment story
ADJUSTED EBITDA AND NET PROFIT
Clean core EBITDA of the Group reached HUF 2.7 billion in 2023, 24% below the result in year 2022. Adjustments
amounted to HUF 491 million, driven by EBITDA of MyCity development projects and costs related to Hgroup acquisition
Reported EBITDA | Clean core EBITDA | Reported Net Profit | Clean core Net Profit | |||||||
(m HUF) | (m HUF) | (m HUF) | (m HUF) | |||||||
4 450 | 3 492 | 2 425 | ||||||||
-29% | -24% | 2 939 | -8% | 2 712 | -22% | |||||
3 160 | 2 669 | |||||||||
1 880 | ||||||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | |||
Adjustments - million HUF | EBITDA | Net Profit | ||||||||
2022 | 2023 | Delta | 2022 | 2023 | Delta | |||||
Reported | 4 450 | 3 160 | -29% | 2 939 | 2 712 | -8% | ||||
(-) MyCity results | 987 | 819 | -17% | 623 | 593 | -5% | ||||
Core results | 3 463 | 2 341 | -32% | 2 317 | 2 118 | -9% | ||||
(-) Costs related to before acquisition date | 0 | 0 | - | -8 | 0 | -100% | ||||
(-) Profit from sale of tangible assets | 71 | 101 | 42% | 71 | 101 | 42% | ||||
(-) Result of portfolio appraisal | 26 | 0 | -100% | 26 | 0 | -100% | ||||
(-) Result of foreign currency differences | 0 | 0 | - | 483 | -264 | -155% | ||||
(-) Result on Hgroup minority buyout | 0 | 0 | - | 0 | 83 | - |
(-) Hgroup EarnOut liability revaluation | 0 | 0 | - | 0 | 1 214 | - | |||
(-) Amortisation of Hgroup intangibles | 0 | 0 | - | -507 | -427 | -16% | |||
(-) Profit before tax of Relabora and Realizza | 0 | 0 | - | 0 | -226 | - | |||
(-) Hgroup impairment | 0 | -182 | - | 0 | -182 | - | |||
(-) Tax corrections of previous year | 0 | -37 | - | 0 | -37 | - | |||
(-) Goodwill impairment | 0 | 0 | - | -58 | 0 | -100% | |||
(-) Acquisition costs | -126 | 0 | - | -126 | 0 | -100% | |||
(-) EBITDA of Relabora and Realizza | 0 | -209 | - | 0 | 0 | - | |||
Total adjustments to core results | 29 | 328 | 1043% | 119 | -261 | -320% | |||
Tax effect of adjustments (9%) | - | - | - | -11 | 24 | -320% | |||
Clean core results | 3 492 | 2 669 | -24% | 2 425 | 1 880 | -22% | |||
Investment story
SUCCESSFUL GEOGRAPHICAL DIVERSIFICATION
Diversified geographic presence: 87% of revenues and 65% of EBITDA generated outside Hungary
Contribution & growth of our markets
Hungary
- 13% of DHG service revenue
- 35% of DHG EBITDA
Poland
- 26% of DHG service revenue
- 16% of DHG EBITDA
Italy
- 60% of service revenue
- 49% of DHG EBITDA
Sales revenue & EBITDA of Services (m HUF)
Total services revenue by country - million HUF | ||||||||||||
30 000 | 28 093 | |||||||||||
27 000 | ||||||||||||
3 546 | ||||||||||||
24 000 | ||||||||||||
Hungary | ||||||||||||
million | 21 000 | 7 365 | ||||||||||
18 000 | 227 | Poland | ||||||||||
HUF | 15 000 | Czech Republic | ||||||||||
12 000 | ||||||||||||
7 739 | Italy | |||||||||||
9 000 | 16 955 | |||||||||||
6 000 | 308 | 3 770 | Total | |||||||||
3 000 | ||||||||||||
3 661 | 0 | |||||||||||
0 | ||||||||||||
2019 | 2023 | |||||||||||
Total services EBITDA by country - million HUF
2 900 | ||||||||||||
2 400 | 2 341 | |||||||||||
million | 825 | Hungary | ||||||||||
1 900 | ||||||||||||
Poland | ||||||||||||
1 400 | ||||||||||||
Czech Republic | ||||||||||||
1 139 | ||||||||||||
HUF | 383 | |||||||||||
900 | Italy | |||||||||||
962 | 1 150 | |||||||||||
400 | Total | |||||||||||
7 | 170 | - 17 | ||||||||||
- 100 | 0 | |||||||||||
2019 | 2023 | |||||||||||
7
Investment story
SHARE PRICE AND RETURNS TO INVESTORS
DHG has generated 103,4% and 126,0% return since its IPO for institutional and retail investors
DHG share price & trading volume since 11 November 2016 IPO
1 200 | 450 000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 000 | 400 000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
350 000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
800 | 300 000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
600 | 250 000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
200 000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
400 | 150 000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
200 | 100 000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
50 000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016.11.11 | 2017.02.11 | 2017.05.11 | 2017.08.11 | 2017.11.11 | 2018.02.11 | 2018.05.11 | 2018.08.11 | 2018.11.11 | 2019.02.11 | 2019.05.11 | 2019.08.11 | 2019.11.11 | 2020.02.11 | 2020.05.11 | 2020.08.11 | 2020.11.11 | 2021.02.11 | 2021.05.11 | 2021.08.11 | 2021.11.11 | 2022.02.11 | 2022.05.11 | 2022.08.11 | 2022.11.11 | 2023.02.11 | 2023.05.11 | 2023.08.11 | 2023.11.11 | 2024.02.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Daily Volume (right) | Share Price (left) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DHG market capitalization (bn HUF)
+150% | 86 m EUR |
MCAP | |
33,8 | ||||||
13,5 | 13,6 | 14,6 | 16,8 | 19,1 | ||
11,3 | ||||||
2018 avg. | 2019 avg. | 2020 avg. | 2021 avg. | 2022 avg. | 2023 avg. | 2024.04.22 |
Current share price: HUF 982 (22 April 2024)
Price range since IPO: HUF 256 - 1000
Market maker: MBH
Analyst's target price (as of 04 December 2023)
Target price:
Under revision
Sponsored research
No target price
Return generated since IPO (November 2016)
Institutions | Retail investors (10% | |
discount) | ||
IPO price | 396,0 | 356,4 |
Price increase (@982 HUF/share) | 148,0% | 175,5% |
2016 dividend | 3,3% | 3,6% |
2017 dividend | 4,5% | 5,0% |
2018 dividend | 6,3% | 7,0% |
2019-2020 dividend | 9,9% | 11,0% |
2021 dividend | 8,2% | 9,1% |
2022 dividend | 27,3% | 30,3% |
Total return from dividend | 59,5% | 66,1% |
Total return | 207,4% | 241,6% |
2023 dividend proposal | 31,5% | 35,0% |
Investment story
LONG-TERM EQUITY STRATEGY
Our long-term objective is to increase free-float market cap
Ownership structure | Market Cap (mEUR) | ||||
7% | |||||
12% | + 75 - 130% | ||||
1% | 170 | ||||
1% | |||||
50% | 78% | 100 | |||
86 | |||||
Founders | Treasury shares Management |
Institutions | Retail investors |
Current market cap Short-term target | Mid-term target |
We intend to increase our market cap in the mid-term to EUR 150-200 million
- Our long-term goal is to reach 50% free float
9
M&A expertise
PROVEN ACQUISITION & IMPLEMENTATION CAPABILITIES
22.7X growth in the revenue generated outside of Hungary since the IPO
Success stories in Poland…
Acquisition of the nr1.
Polish real estate broker
Added value from DHG: effectively turning a struggling company into a leading player through:
- successful adaption of DHG's know-how and IT system
- complete transformation of the franchise
model and
• revitalization of the agent network via training and development initiatives
… and in Italy
Acquisition of the 2nd largest loan broker network in Italy
Added value from DHG: supporting to evolve to be a pioneer in a changing market segment
- Succesful expansion of partnership with banks backed by DHG's international and stock market presence
- Sound financial backing to support the formation of strategic agreement with Professionecasa
Service revenue (billion HUF)
27,0 | 28,1 |
87.4% | ||||
13,6 | revenue | |||
from | ||||
4,7 6,0 | 7,7 | 9,0 | ||
4,8 | outside | |||
of HU | ||||
2016 2017 2018 2019 2020 2021 2022 2023 |
Service EBITDA (million HUF)
Add-on acquisition of two loan brokerage companies
-
To strengthen DHG's presence in the
Polish loan intermediation segment and - enhance cross-sellingopportunities.
Strategic cooperation with one of the largest real estate agencies in Italy
- Instead of building up real estate brokerage from scratch
- To increase the mediated loan volume and profitability in Italy
3 463 | 64.7% | |||||||
2 460 | ||||||||
2 341 | EBITDA | |||||||
1 394 | 1 661 | from | ||||||
803 1 022 | 1 139 | outside | ||||||
of HU | ||||||||
2016 2017 2018 2019 2020 2021 2022 2023 | ||||||||
Hungary | Outside of Hungary | |||||||
With acquisitions in Poland in Italy and subsequent organic growth, Duna House Group has become a true international player.
On top of financial returns, DHG has been able to accumulate significant organizational and technological knowledge about organic &
inorganic growth and market exploration through M&A.
10
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Duna House Holding plc published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 08:56:10 UTC.