Romanian company iHunt, which produces rugged smartphones and smartwatches under its own brand, has this week finally completed a long-awaited bond issue to raise US$2 million for expansion across Eastern Europe.

We estimate iHunt to be the no.1 rugged smartphone brand in Romania. Rugged is a niche but growing market. Construction workers and military types love them.

The firm will use its extra cash to push outside Romania into Hungary and Bulgaria in 2021, where the rugged segment is soaring over 100% (from a low base).

What makes iHunt stand out is its astonishing profit margin. On modest revenues of just a few million dollars per year, it makes a 13% net profit. Most smartphone vendors would sell their grandmother for that level of return.