Sell-off post MCB buyback unjustified; upgrade to Overweight
Sell-off contradicts positive developments. With over 100k RT of new DC (district cooling) capacity underway (vs. 2015 additions of 18k RT), we expect bumper EPS growth of 17% y-o-y in 2017, driven by Dubai Parks and Resorts’ DC project (43k RT), due to begin in 3Q16. The sell-off in Tabreed as a result of overall market weakness (c16% from when the Board proposed a 28% MCB buyback) puts the stock on a 2017e fully-diluted P/E of 7.1x. Alongside a stable 5-6% dividend yield, we believe Tabreed holds value and we raise our rating to Overweight from Neutral.
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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