CI Capital - Global Telecom Utilities Inc (HGI.UN) Reiterate OW: early recovery signs evident in 2Q15

Report

CI Capital

Sarah Shabayek

EUR 22.10 For Business Accounts Only

Reiterate OW: early recovery signs evident in 2Q15

Long-term Overweight call on conviction in 9-15 month transformation program. We maintain our view that 2H15 will remain under pressure from promotions in Algeria targeting market share consolidation and see no short-term catalysts. GT should remain a long-term recovery story starting 2016e. The stock trades at a 17% discount to peers on 2015e EV/EBITDA but at double that on 2016e. Downside risks are higher-than-expected competition and sharper Algerian currency devaluation.

13/08/2015 7 EN

Underlying

Global Telecom & Utilities Inc

See profile

CA37956L1094 Toronto Stock Exchange Canada

Provider

CI Capital

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.

See profile

Analysts

Sarah Shabayek

Other Reports on these Companies

CI Capital

Recovery story: 68% upside by early 2016; reiterate OW

A valuation call on long-term data growth. We expect data to drive 80% of revenue growth as 3G penetration rises in GT’s three young markets supported by a huge 2G backlog in Bangladesh and Pakistan. GT currently trades at a 2015e EV/EBITDA of 3.9x (vs. our TP’s 4.9x), a discount of 20% to peers which widens to 33% if we factor in recovery.

EUR 97.22

June 10, 2015 June 10, 2015 24 EN

CI Capital

Back to fundamentals: A cheap play on Djezzy's recovery

Strong recovery, driven by data across all markets and voice at Algeria’s Djezzy, starting 2015e, should lead GT’s consolidated EBITDA to grow at a 2015-18e CAGR of 8%. We expect data to generate 60% of this growth, as a result of the late introduction of 3G in all of GT’s, which has led to pent-up demand for the service. Djezzy should bring in half the data revenue, with the other half coming in as two equal portions from Mobilink and Banglalink. We expect voice recovery for Djezzy to contribute the bulk of growth, on the view that it can recover its lost usage once its 3G coverage expands ac...

EUR 273.96

August 17, 2014 August 17, 2014 64 EN

Egypt banks | Higher RRR: A manageable headwind; flag CAE

Higher RRR is negative, at face value, … On 22 September, the CBE hiked the reserve requirement ratio (RRR) on short-term LCY deposits by 4pp to 18.0% in effort to tighten liquidity and combat inflationary pressures. We calculate this should result in the absorption of cEGP150bn in excess liquidity from the system, which would be deposited at the CBE with no return. The RRR on FCY deposits was maintained at 10%. We expect banks will satisfy the higher liquidity requirement mainly through reducing their interbank assets (c18% of system assets) and to a lesser extent their treasury holdings (c37...

EUR 21.33

September 28, 2022 September 28, 2022 6 EN

Marlene Milad ... (+2)

Marlene Milad
Sara Boutros

The Pulse | Cityscape Egypt 2022: Positive vibes

This periodical aims to discuss on-the-ground themes influencing MENA property developers. In this edition: Cityscape Egypt 2022: Positive vibes The Cityscape Egypt annual exhibition took place between 21 and 24 September, hosting c80 developers, notably higher than last year’s c55 developers, marking an official return to pre-pandemic levels.Notable recovery in footfall, with more serious buyers than last year. The event seemed significantly crowded with visitors. The offerings were fairly diversified on both segment and geography, with an upper and middle-income focus.Bigger weight noted fo...

EUR 34.12

September 27, 2022 September 27, 2022 EN

Ahmed Soliman

Ahmed Soliman

EKHO EY | EGP listing offers ideal currency hedge

Maintain OW; Cut TP c18%. Our 12M TP cut reflects a 2% higher WACC assumption and 16% higher natural gas price at AlexFert following the latest gas price amendment. EKH trades on a 2023e EV/EBITDA of 3.0x (based on the EGP listing), a c40% discount to global peers, unjustified in our view, with its 2023-25e EBITDA CAGR of -1.7% being in line with global peers. EKH also offers a dividend yield of 11.5% in 2022e, paid in USD for all listings.Beyond a urea/gas story. On 15 September, the Egyptian government issued a decision to change the natural gas price for urea producers to be based on a form...

EUR 21.33

September 26, 2022 September 26, 2022 7 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Reiterate OW: early recovery signs evident in 2Q15

Recovery story: 68% upside by early 2016; reiterate OW

Back to fundamentals: A cheap play on Djezzy's recovery

Egypt banks | Higher RRR: A manageable headwind; flag CAE

The Pulse | Cityscape Egypt 2022: Positive vibes

EKHO EY | EGP listing offers ideal currency hedge

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe