Report
Mohammad Kamal
EUR 29.18 For Business Accounts Only

MCQE FY 16A earnings review- Weakness at the EPS level


  • Misr Cement Qena grows Q4 top line by 162% on consolidation of ASEC Minya and strengthening in selling prices. However, growth in net earnings lags behind (+52% y/y) due to ballooning net finance costs (+8x y/y to 38% of EBIT vs. 16% in Q4 15A).
  • We remain bearish on the Egyptian cement industry as the proliferation in direct costs (EGP deval, increase in coal prices and subsidy cuts) results in lower margins in the medium term.


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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