A turnaround story
High prospects in India and Bangladesh, particularly now elections have passed, and in Saudi, on recovering construction activity. RAK Ceramics, the world’s third largest ceramic maker, based in Ras Al Khaimah, is steadily growing its presence in India (17% of revenue) and Bangladesh (8%), thanks to low tile consumption per capita in those markets. This excites us because margins are high in Bangladesh, where RAK is the market leader, while in India, a 7x increase in the allocation of private spending to sanitation in the 2015 state budget bodes well for RAK’s asset-light growth model. In Saudi (17% of revenue), there are signs that projects halted in the aftermath of labour reforms are being reinstated. By 2017, we expect RAK to be selling c20% more SW and c5% more tile than this year, leading to a 2014-16e EBITDA CAGR of 9%. Our assumptions come despite accounting for energy cost hikes in India, and we do not factor in guided margin expansion after Samena Capital’s June acquisition. We expect a 2016 EBITDA margin of 18% vs. a company target of 20%, which could rise if lower oil prices pull freight costs under 3.5% of sales.
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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