Report
Mohammad Kamal
EUR 44.50 For Business Accounts Only

Net profits rise 2.8x to EGP 87m on a 930bps+ widening in gross margins. Upgrade to Buy

Arabian Cement Egypt grows Q4 top line by 32% y/y on a 34% strengthening in implied cement retail prices, partially offset by a 2% drop in sales volumes

The group booked EGP 728m in FX revaluation differences during the year, via charges on P&L, OCI and PPE capitalization under special accounting treatment

We raise our TP by 28% to EGP 11.5/share and upgrade from Hold to Buy on improved earnings outlook and a sharp 72% discount to replacement cost implied in stock price, post-float


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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