Egyptian cement sector I Suez Cement and ACC top picks for 2015
Finding energy solutions. Close to 80% of the industry has plans to migrate away from state-provisioned fuel to coal and alternative fuels, due to supply shortages and subsidy reductions, and despite the low visibility on the coal legislation currently in the works. Migration would allow full capacity utilisation and improve EBITDA margins by an average EGP47/t (USD6.6/t), or 30%. If the government continues to increase fuel prices as we expect it to, migration savings would improve margins by cEGP20/t (USD2.8/t) for every USD1/mmBtu hike. In the case of our Overweight-rated stocks, the average 2014-17e EBITDA CAGR of 35% is mainly as a result of this dynamic, and, to a lesser extent, pricing growth. Our Overweight ratings come despite our assumptions of a 30% tax on landed coal costs effective January 2015, which would necessitate a c3.5% price increase to pass through, all else constant.
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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