MVM Group: Leading utility grows and diversifies
Credit Report - Corporate Bonds , 25. Juni
Fully state-owned MVM is the leading energy group in Hungary and of strategic importance for the country's energy security. It is one of the ten largest utilities in Central and Eastern Europe. For 2024, MVM reported consolidated revenue of HUF 4,534bn (-10.7% y/y). Profitability remained at 18%, cash flows were strongly positive, and net profit amounted to HUF 324bn (-12.3% y/y).
Due to lower net debt, all credit ratios improved. MVM aims to more than double its installed generation capacity by 2035, mainly through renewables, nuclear power, and (temporarily) natural gas. The necessary financing is likely to come partly from the Hungarian government and partly from the capital market. MVM has some catch-up potential in the area of sustainability. Skillful use of this potential should further strengthen the group's market position. We assess the only outstanding EUR bond as undervalued.
Due to lower net debt, all credit ratios improved. MVM aims to more than double its installed generation capacity by 2035, mainly through renewables, nuclear power, and (temporarily) natural gas. The necessary financing is likely to come partly from the Hungarian government and partly from the capital market. MVM has some catch-up potential in the area of sustainability. Skillful use of this potential should further strengthen the group's market position. We assess the only outstanding EUR bond as undervalued.