reports
- Alia El Mehelmy
- Michel Said
India and Saudi M&A to bear fruit; Reiterate OW
A dividend play with room for further upside. We raise our TP by 16% to AED3.48/share on: i) the acquisition of two Saudi distributors, lowering distribution costs and eliminating the risk of Saudi receivables ageing previously assumed, ii) the divesture of non-core, low-margin businesses, bringing 2017 non-core revenue to 8.4% vs. 13% in 2016, and iii) expectations for a recovery in India. Although all-in-all not a growth play, RAK is committed to sustaining at least 60% dividend payout; we ass...
Insider sold: A director sold 1,000,000 shares at 0.000BDT
A director at Rak Ceramics sold 1,000,000 shares at 0.000BDT and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years cle...
- Alia El Mehelmy
Overweight on new capacity, restructuring
Growth ahead, adding to RAK’s c9% dividend yield. 2015 earnings beat our estimate by 17% (although revenue fell short of our expectations) thanks to restructuring via the centralisation of raw material procurement, consolidation of the high-margin tableware unit, and sale of units that were diluting returns. These, alongside reinstatement of production in Iran mid- 2016, drive our more positive margin outlook, and we raise our target price by 6.8% to AED4.7. We see RAK’s P/E falling to 7.3x by 2...
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