Overcoming headwinds, reiterate Overweight
Selling price hikes trigger TP upgrade, reiterate Overweight. Consumption pressures leave raw material procurement management and swift price hikes as the only alternatives to protect margins and profits. Y-t-d Obour Land raised its prices over intervals by c15% to cEGP22/kg, implying c45% y-o-y growth vs. the 2016 average. We raise our 12-month TP to EGP20/share from EGP14/share, as we raise 2017-21e EBITDA by c33% p.a. on higher selling prices and on lower SMP and milk protein (c40% of CoGS) price assumptions (-9% vs. previous forecasts).
Obour Land for Food Industries is an Egypt-based manufacturing company, which is specialized in the production, processing and packaging of white cheese. The Company's products include cheese olive with palm oil, istambolly cheese with palm oil, feta cheese, instanbully cheese, khazin cheese with palm oil, feta cheese with palm oil, talaga cheese, instanbully cheese with pepper, double cream cheese and baramily cheese. Obour Land for Food Industries' products can be found at supermarkets in pack sizes ranging from 80 grams to 500 grams.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.