Report
Mohammad Kamal
EUR 37.08 For Business Accounts Only

ElSewedy Electric Q4 16A results review: Stellar growth as net profits surge 5.3x y/y to EGP 1.5bn- maintain strong Buy.

Outstanding Q4 results: Top line and gross profits up 104% and 223% y/y respectively, on a 943bps improvement in blended gross margins

  • All-time high net profits of EGP 1.5bn in Q4, +5.3x y/y (c.EGP 875m excluding one-off FX gains of EGP 948m on the revaluation of USD receivables, implying 3.1x growth vs. Q4 15A)
  • SWDY remains our top industrial pick (key play on the regional power infrastructure opportunity, beneficiary of deval through USD and EUR-linked P&L). Maintain Buy and EGP 105 TP (33%+ upside)


Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Mohammad Kamal

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