Unfavourable dynamics priced-in; Upgrade to Neutral
Raise to Neutral on valuation, unchanged TP of SAR36.0/share. We reduce our gross government bookings forecasts by c34% over a 5-year horizon to reflect a sharper deterioration than we had envisioned. Against this, we: 1) raise retail booking forecasts by 22.4% over our horizon given the robust expansion of ATG’s online booking platform (gross 2019e sales of SAR2.2bn vs. SAR0.5bn in 2016, 50% is assumed cannibalization of brick-and-mortar) and, 2) roll-over our DCF. The net impact is a 13.6% higher EV, but a y-t-d net debt addition of cSAR775mn leaves our TP unchanged at SAR36.0/share. We nonetheless raise our rating to Neutral given the c18% y-t-d share price drop.
Seera Group Holding, formerly Al Tayyar Travel Group Holding Company SJSC, is a Saudi Arabia-based company engaged in the travel, tourism and transportation sector. The Company's services include reservation, ticketing for domestic, regional and international flights, follow-up and confirmation of reservation, ticketing for land, sea and train transportation facilities, hotel booking, furnished apartments and hotel rooms. In addition, the Company organizes tourism services, such as incentive trips, Hajj and Umrah programs, honey-moon trips, medical and educational programs, as well as conference and meeting services. The Company also provides land, sea and air transportations means to a range of Saudi Arabian urban and rural centers, along with land, marine and air cargo services, issuance of (Triptick) customs pass, international driving licenses, customs clearance for goods and commodities, as well as packing and insurance, among others.
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.