Presales targets missed; growth still expected
Lower TP by 25% on missing targets. We downgrade our target price to EGP0.40/share but maintain our Overweight rating after i) lowering immediate presales forecasts on the back of weak 1H16 performance and ii) increasing discount rates by 200bps (up to 19-20%). That said, we join the more conservative end of consensus, now seeing Porto Group as a less viable exposure to the still vibrant Egyptian property market, at least in terms of its remaining upside and catalysts on the horizon.
Porto Group Holding SAE is an Egypt-based holding company. It is engaged in the following segments through its subsidiaries: education, marketing, real estate, investment and management.
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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