Maintain OW but watch subsidy spending
TP unchanged as cost efficiency offsets estimated 12%-higher subsidies. We view the name more cautiously due to rising subsidies that were offset by cost efficiency in 1Q15. Viva continues to trade at a discount to peers of 34% on 2015e P/E, while at a 2% premium on EV/EBITDA. We value VIVA at 6.8x EBITDA as we believe it will present a dividend-generating data growth play justifying the premium. The higher subsidies and more aggressive competition remain downside risks to our valuation.
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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