CI Capital - RAK Ceramics Bangladesh Ltd (RAKCERAMIC) Overweight on new capacity, restructuring

Report

CI Capital

Alia El Mehelmy

EUR 48.62 For Business Accounts Only

Overweight on new capacity, restructuring

Growth ahead, adding to RAK’s c9% dividend yield. 2015 earnings beat our estimate by 17% (although revenue fell short of our expectations) thanks to restructuring via the centralisation of raw material procurement, consolidation of the high-margin tableware unit, and sale of units that were diluting returns. These, alongside reinstatement of production in Iran mid- 2016, drive our more positive margin outlook, and we raise our target price by 6.8% to AED4.7. We see RAK’s P/E falling to 7.3x by 2017 (30% lower than regional peers) from 10.1x in 2015, despite higher UAE gas prices.

13/03/2016 10 EN

Underlying

RAK Ceramics Bangladesh Ltd

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BD0634RAKCR4 Dhaka Stock Exchange Bangladesh

Provider

CI Capital

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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Analysts

Alia El Mehelmy

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Overweight on new capacity, restructuring

India and Saudi M&A to bear fruit; Reiterate OW

Insider sold: A director sold 1,000,000 shares at 0.000BDT

Egypt banks | Higher RRR: A manageable headwind; flag CAE

The Pulse | Cityscape Egypt 2022: Positive vibes

EKHO EY | EGP listing offers ideal currency hedge

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