Turn buyers on resistant core business growth
Sell-off offers good entry point, upgrade to OW from N. We expect Mezzan’s ongoing efforts to expand its regional platform and reroute trade to Qatar via Kuwait (instead of UAE and Saudi) post Qatar rift and take advantage of Saudi manufactures’ absence in Qatar to pave the way for 2018 recovery. We cut our 12M TP by 5% to KWD1.070/share mainly to reflect a 2.9ppt lower 2017e EBITDA margin on higher logistics and overhead costs. The share price sell-off ignores the intact growth and potential LT market share gain in Qatar (9% of 1H17 revenue), in our view. Mezzan trades on a 2018e P/E of 16.2x, 9% below peers despite a 2017-19e EPS CAGR of 28% vs. 20% 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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