Negatives from GCC rift priced-in; upgrade to OW from Neutral
c80% of top line remains secure till 2033e. We cut our 12M TP by 20% to QAR20/share to reflect expectations of: i) 39% y-o-y lower revenue from JVs (15% of 2016 top line) in 2017 as expiring contracts are renewed at less favourable terms and, ii) 13% higher G&A costs in 2H17e vs. 1H on rising opex post-GCC blockade. However, even with these downward adjustments, Nakilat shares appear oversold given the unchanged freight agreements of the wholly-owned fleet, minimal GCC exposure and contracts that allow for cost escalation. Also, in the event that Nakilat orders 1 new wholly-owned vessel (now the moratorium on gas development was lifted), this would add QAR1.1/share to our TP.
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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