Downgrade to N; cycle-peak margins priced in
Local demand showing short-term weakness. Against volume growth of 5.2% over 2012-13, carpet demand in Egypt weakened in 2014, with OWC’s volumes coming in flat y-o-y. The local sales mix has not shown meaningful improvement over the 2012-13 average, and we believe this is due to carpets being late-cycle. We therefore reduce our local revenue growth forecasts to 10% from 12% a year, leaving 2015-19e local revenue 5.6% lower than before on lower volumes, but mainly shorter-term, and reiterate our positive outlook longer-term.
Oriental Weavers is engaged in the production, selling and exporting of ready–made carpets and the importing of related production supplies, equipment, machinery and materials.
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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