Shielded from consumption shocks, reiterate OW
Appealing valuation warrants further rerating. We raise our 12-month TP to EGP21.0/share from EGP10.5/share on higher EBITDA (+61% over 2017-21e) on i) EGP floatation gains (FCY CoGS are fully hedged), ii) better export competitiveness and iii) the export rebate programme extension. We see 2017e revenue as price driven (+36% y-o-y) on flat volume (0.7%). We assume stable FCY export prices. OWC trades on 2017 P/E of 8x (13x implied on TP ex. rebate) vs. peers’ 15x.
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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