Downgrade to Neutral on lower margin forecasts
Downgrade to Neutral on 21% lower target price of SAR33/share. The new USD7bn phosphate complex designed to double Ma’aden’s DAP capacity to c5.9mn tpa should start in 4Q16, preceded by the aluminium integration project in 1Q16. But the stock trades on 10.8x 2017e EV/EBITDA, implying that the market is already pricing in the 2015-18e EBITDA CAGR of 37%, the bulk of which is driven by new project launches, which could face delays.
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.
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