Prime Group

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​Since its founding in 1992 as a privatization consulting office to the government of Egypt, Prime has successfully reinvented itself as a regional investment bank with a presence in major Arab markets. We provide innovative and outstanding financial services to corporations, institutions, governments, and individuals, using the breadth of our expertise to enable them to reach their objectives.

Over the years, we have refocused our business and our people while extending our geographical reach and strengthening our technological capabilities.

Today, Prime is:

  • A competitive leader in the region
  • Focused on both clients and products
  • Led by pioneers who see change as an opportunity that constructively challenges the status quo
  • Driven by a fearless and unconditional commitment to delivery and performance
  • Supported by a culture that emphasizes teamwork and a sense of urgency


Taher Seif
  • Taher Seif
EUR 18.54
ETEL TELECOM EGYPT

TELECOM EGYPT – VALUATION UPDATE

​We downgrade our TE fair value to EGP 13.94/share with a “Buy” recommendation, entailing 35% upside potential. This represents almost 12% down from previous fair value of EGP 15.15/share in our last Risk free rate cuts report. We used an average WAAC of 19.02%, as we account for a 2% uncertainty risk discount surrounding the company’s prospects in the medium term, specifically related to mobile operation segment performance, the segment that should be driving growth in the company’s t...

05/03/17 May 3, 2017 6 EN
Mohamed Marei
  • Mohamed Marei
EUR 18.54
MNHD MADINET NASR fo...

MADINET NASR – VALUATION UPDATE

​We updated our valuation for MNHD, as the company`s dynamics have changed significantly. We currently value MNHD based on a SoTP-DCF methodology with only 20% of both residual land plots in Sarai and Taj City being valued on a NAV basis, as such land plots will be dedicated to the establishment of commercial properties, hence turning MNHD towards becoming a cities` developer, fully equipped with all modern amenities.

MNHD MADINET NASR FOR HOUSING AND DEVELOPMENT
04/30/17 April 30, 2017 6 EN
Ali Afifi
  • Ali Afifi
EUR 23.18
MICH Misr Chemical I...

Spotlight - Misr Chemical Industries Company

​We assign a “STRONG BUY” rating; with an upside potential of 48.9% driven from a Fair Value of EGP 12.21/share to Misr Chemical Industries Company (MICH). We applied the Discounted Cash Flow (DCF) valuation methodology to value the company’s operations, reflecting our assumptions for the company during the forecast period. Utilizing a market risk premium of 8.0% an adjusted beta of 0.44 a liquidity risk premium of 2.0%, which translates to a WACC of 16.9% and a perpetual growth rate of ...

MICH MISR CHEMICAL INDUSTRIES COMPANY
04/27/17 April 27, 2017 7 EN
Omneya El Hammamy
  • Omneya El Hammamy
EUR 27.82

DELTA SUGAR CO. - VALUATION UPDATE

​We update our Fair Value for Delta Sugar Co. - with a “Hold” rating driven from a upside potential of 6.57%; driven from our estimated Fair Value of EGP 17.52 /share. Using the DCF valuation methodology for Delta Sugar Co., we utilized an average WACC over our forecasted horizon of 16.23%, an average risk free rate of 11.40%, and a market risk premium of 8%. We used the company’s 5 years adjusted beta which is equivalent to 0.65.

04/24/17 April 24, 2017 8 EN
Mohammed Magdy
  • Mohammed Magdy
EUR 139.06

Egypt's Cement Sector Note

​Prosperity in demand boosted selling prices during 2016. Cement demand jumped by 7% y-o-y during 2016, a 3Y high, to stand at 57mn ton leaving the market with an idle capacity of 13mn ton. Massive infrastructure and energy investments coupled with stable demand over residential units, on the back of growing population and marriage rate, in addition to accumulating a stock pile of building materials by many real estate developers and contractors, all supported the robust demand growth recorded...

04/23/17 April 23, 2017 33 EN
Eman Negm
  • Eman Negm
EUR 9.24

A New Socio-Economic Era

​The long waited step of floating the local currency has been finally taken six weeks ago; leaving the whole economy, with its production and consumption sides, facing the big shock of rising costs of production as well as rising costs of living. One can conclude that the government was - actually - subsidizing the Egyptian Pound more than any other commodity and by liberalizing its exchange in terms of other currencies, a new era is now witnessed by all segments and social classes of the econ...

12/18/16 December 18, 2016 6 EN
EUR 46.18

FLOATATION AND HIKING RATES COMBINED EFFECT ON VALUATION

​Finally the floatation is on air, with a positive effect on the Macro level and a dual effect on the Micro level We believe the CBE’s recent decisions to adopt a Floating FX regime, which will succeed in creating an unified exchange rate in the Egyptian market, will be a growth driver for the Egyptian economy, especially that; the decision follows the announcement of investment motivating decisions by the “Supreme Investment Council“. Over the past period, we insisted on the importance ...

11/03/16 November 3, 2016 10 EN
Mohammed Magdy
  • Mohammed Magdy
EUR 139.06

Egypt's Cement Sector Note

​Prosperity in demand boosted selling prices during 2016. Cement demand jumped by 7% y-o-y during 2016, a 3Y high, to stand at 57mn ton leaving the market with an idle capacity of 13mn ton. Massive infrastructure and energy investments coupled with stable demand over residential units, on the back of growing population and marriage rate, in addition to accumulating a stock pile of building materials by many real estate developers and contractors, all supported the robust demand growth recorded...

04/23/17 April 23, 2017 33 EN
Ali Afifi
  • Ali Afifi

Egypt's Fertilizers Industry Update | New chapter in the fertilizers s...

​Long awaited price increase finally implemented by the government: The Egyptian government announced the raising of the subsidized fertilizer price from EGP 2,000/ton of urea to reach EGP 2,959/ton. Meanwhile, nitrate prices have been raised from EGP 1,950/ton to reach EGP 2,860/ton. The price increase comes a as a relief for fertilizer producers who have been recording losses due to the increase in production cost. Following the floatation natural gas cost, which is valued at USD 4.5/mmbtu w...

01/16/17 January 16, 2017 3 EN
Aboubakr Emam
  • Aboubakr Emam
EUR 9.24

Egypt's Banking Sector - FLOATATION EFFECT ON BANKS’ FINANCIAL STATE...

​Due to the expected significant effect of EGP floatation on Egyptian banks’ financial statements, we opted to held hypothetical scenario to address the effect of the new exchange rate on valuation of CIB and CIEB. In this scenario, we assume the FX rate to stand out at EGP 14/USD at the end of December 2016, as well as assuming various changes in balance sheet items during 4Q2016. This scenario yields a F.V of EGP 63.05/share for CIB and EGP 32.86/share for CAE, implying “Reduce” recomm...

11/23/16 November 23, 2016 5 EN
Ali Afifi
  • Ali Afifi
EUR 92.34
ABUK ABU QIR FERTILI...

ABU QIR FERTILIZERS - RE-INITATION OF COVERAGE

​Market leader in the nitrogenous fertilizers industry in Egypt controlling 70% of total market supply: The company is 85% owned by the government as it was established by the government in 1976 to supply the Egyptian agriculture sector with the required fertilizers. Abu Qir 1 was the first plant and was established in 1976 to produce prilled urea Abu Qir Fertilizers remains the largest producer of nitrogenous fertilizers in Egypt supplying various products, including granulated urea, prilled ...

ABUK ABU QIR FERTILIZERS
10/27/16 October 27, 2016 22 EN
Omneya El Hammamy
  • Omneya El Hammamy
EUR 110.82
DOMT Arabian Food In...

ARABIAN FOOD INDUSTRIES – DOMTY – INITIATION OF COVERAGE

​We initiate our coverage for Arabian Food Industries - Domty - with a “Buy” rating driven from a upside potential of 16%; driven from our estimated Fair Value of EGP 6.75 /share Using the DCF valuation methodology for Domty, we utilized an average WACC over our forecasted horizon of 15.60%, a risk free rate of 13.14%, and a market risk premium of 8%. We used the average F&B Sector Beta which is equivalent to 0.6. Currently, the stock is being traded at a discount to its global and local p...

DOMT ARABIAN FOOD INDUSTRIES COMPANY DOMTY GDR (REG S)
10/09/16 October 9, 2016 36 EN

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