Unlevered, asset-light co-developer; initiate at OW
A unique model tailored for cash returns. Porto Group stands out in Egypt’s property landscape with its i) unlevered balance sheet, ii) no fixed land commitments due to its co-development agreements, iii) good delivery track record, and iv) association with a portfolio of brands owned by its sister company, Amer Group. It has access to 4.8mn sqm of land and a backlog of cEGP5.2bn planned for delivery within the next 4 years. The stock offers an attractive 2016-19e FCF yield of 29%, 2016-19e EPS CAGR of 95%, and projected 2016-19e dividend yield in excess of 7%.
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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