Buy on cheap valuation, growth profile
TP still offers upside following price drop. We downgrade our TP by c15% to AED2.50/share, primarily on: i) a c3% revision to 2017e rental price/sqft in Dubai Mall following 3Q17 results (base rent up 3% y-o-y vs. 11% in 3Q16), and ii) a c10% decrease in 2018-22e gross rental income primarily on lower growth assumptions (avg. 3% in next 5 years vs. 6% previously) amid regional turbulence and shrinking consumer baskets. That said, following a c20% drop in share price, our current TP implies an upside of c16%, warranting an Overweight rating.
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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