Changing times; downgrade to Underweight
Energy price hikes a blow. We downgrade Ma’aden to Underweight from Neutral on a 30% lower 12-month target price of SAR23.0/share as we factor in Saudi’s feedstock, transportation, fuel, and power price revisions. Our previous target price assumed Saudi would resume its support to the mining industry. The hike in electricity prices represents the main hit, responsible for two-thirds of the SAR10 target price cut, lowering the aluminum segment’s contribution to our target price to 20% (from 32%). We cut 2016e EBITDA by 27% to SAR4.6bn.
Saudi Arabian Mining is engaged in various projects related to all stages of the mining industry, including development, advancement and improvement of the mineral industry, mineral products and by-products. Co.'s principal mining activities are at the Mahd Ad Dhahab, Al Hajar, Bulghah, Al Amar, Sukhaybarat, Al Jalamid, Az Zabirah and Al-Ghazallah mines. Co. mainly mines gold, phosphate rock, low-grade bauxite, kaolin and magnesite. Co. is involved in the following two major projects, both of which are in their development stages: Aluminium Project and Phosphate Production Facility.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.