Raise TP, potential EGX buyback a catalyst
Up EGP TP by 22% to reflect end-2017 USD:EGP estimate of 11.9. There are also some developments in favour of the stock that we believe are worthy of flagging. During OC’s 2Q16 investor call, the CEO stated that Saudi receivables (inclusive of charges and claims) is cUSD80mn, a marginal c4% of total receivables, limiting the impact of a write-off and backlog cancellation to 7.5% of our TP. In addition, OC demonstrated strong award intake in 1H16 with its proforma backlog rising by 13.2% y-t-d to USD9.5bn (mainly driven by Egypt), and exceeded profitability guidance with 1H16 EBITDA margins at 5% beating our estimate of 4.2%, which also supports our positive margin outlook.
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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