Bumper capacity rise fuels growth; initiate OW
Overweight with TP of EGP37.5/share. Edita is an ideal exposure to Egypt’s promising snack market (5-year CAGR of c24%), young population, F&B spending (48% of HH spend), and mid- to low-income bracket (avg. price/unit of EGP1.15). Edita is on the cusp of unlocking capacity constraint, adding 40% to its capacity in 2015 to 140k tpa (2014a utilisation of 100%). Edita’s 2016e PEG is c20% lower than MEA peers, although its RoE is superior at 32% vs. 20%. Our TP implies 2016e P/E of 26x, in line with peers, growth-adjusted.
Edita Food Industries is a Fast-Moving Consumer Goods (FMCG) company based in Egypt. Co. is engaged in developing, manufacturing and distributing products and brands such as Molto, TODO, Bake Rolz, Bake Stix, Mimix, HoHo's, Twinkies and Tiger Tail. Co. also acts as the sole regional distributor of several brands of imported sweeteners, olive oils, & pasta and maintains market activities in the Croissant, Cakes & Bread snacks categories in Egypt. Co. is predominately active in the Egyptian market but also distributes its products to consumers in more than 15 other markets in Middle East, Africa and Asia.
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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