Increasing internationalization
Given its monopolistic position on the Moroccan sugar market, COSUMAR is implementing an ambitious strategy, which is based in particular on its desire to become the major regional sugar producer in Africa with complete diversified activities, sustainable creator of values while being socially responsible.
In 2016, COSUMAR has materialized its wish to expand its activities outside Morocco by acquiring 43.3% stake in DURRAH ADVANCED DEVELOPMENT CO which carries the project "DURRAH SUGAR REFINERY (DSR)" in Saudi Arabia. The prospects of this expansion are very optimistic, given the (i) the region’s annual consumption, estimated to 4 million tons of sugar, (ii) the very good geographical position of the plant based in a Red Sea port, and (iii) the selected processes and technologies that would be used. As part of our central scenario, we recommend holding the stock with a target price of MAD 350, taking into account (i) the development and the upgrading of the upstream farming, (ii) the boost in exports as well as (iii) the improvement of the industrial productivity.
BMCE Capital Global Research is a subsidiary of BMCE Capital Group dedicated to Research and Financial Analysis. It is addressed to professional investors (financial institutions, management companies, etc.) to which it provides information and independent analysis aligned with international standards. BMCE Capital Research covers equities, interest rate, Forex and commodities markets in Morocco, Tunisia and WAEMU region (Bourse Régionale des Valeurs Mobilières, BRVM). Thanks to its latest generation technology platform, to its teams and to those of its partners, the Research Office of BMCE Capital is now able to cover simultaneously several places in Africa and to produce several publications co-branded under its umbrella brand African Securities Network, ASN.
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