Maintain Overweight: Earnings momentum intact
Unjustifiably cheap. We reiterate our Overweight rating on OC, arguing that the past 6 months’ share price drop is unwarranted. The market price implies an EV of USD746mn, 3.4x 2015e EBITDA or 0.1x Sep 2015 backlog, steeply below the EV/backlog average of 0.28x in MENA post the 2008 global financial crisis. This comes despite OC’s focus on high-margin, lower-risk infrastructure projects, and despite our expectations for margin improvement, driving a 2015-17e EPS CAGR of 40%.
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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