Attractive entry ahead of monetary easing in Egypt
Maintain Overweight on TP of EGP27.5/share. We upgrade our valuation by 37% primarily on incorporating: higher FX assumptions (+10% to EGP16/USD in 2018) and AUMs (post Frontier Investment Management Partners’ [FIM] acquisition), as well as rolling over our DCF. EFG should be among the main beneficiaries from Egypt’s expected shift to an expansionary monetary policy due to its strong foothold in the local market (c50% of total IB fees in 1H17). Regional AUMs’ expansion is also a key value driver for the firm. Our TP for EFG implies a 2018e P/BV of 1.2x against an expected RoE of 16% (vs. P/BV of >2x and RoE of 15% 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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