Downgrade to Underweight on valuation grounds
Post-IPO rally more than prices in EPS growth; cut rating to Underweight. We raise our 12M TP by 22% on higher container volume growth visibility. Our revised TP (15% below the share price) implies a 7% discount to peers’ 2017 P/E, justified in our view by i) single country exposure and ii) high risk associated with new concessions. Our 2017-19e EPS CAGR of 12% takes into account a progressive loss in traffic at Safi and Nador 2019 onwards (10% of 2015 revenue) given the ANP¹’s plan to relocate ports to new concessions. Potential local concession wins aim at maintaining Marsa Maroc’s market share rather than grow it, we think.
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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