Stands out of the crowd; initiate at OW
Discount to peers unjustified; we see c46% upside. Our equity value for DPW, the world’s third-largest port operator by volume, indicates USD395/TEU based on 2015 throughput, going down to USD326/TEU in 2018 as new capacity comes on stream. The stock trades at a 28% discount to peers’ equity/TEU, unjustified, in our view, due to i) 19% capacity growth by 2018, ii) stable free cash flow stream from JAFZ*, iii) limited exposure to China, and iv) average concession life of 40 years (vs. 20-25 for peers).
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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