Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
OC offers 14% dividend yield in 2021e. OC distributed USD0.46/share in 2020, and we expect this to rise to USD0.67/share in 2021 and USD0.73/share in 2022 (distributed semi-annually), on rising profitability and a liquid balance sheet. This is equivalent to a yield of 14.4% in 2021e and 15.7% in 2022e (based on the EGX)—the highest in our Egypt universe, and vs. 1.7% and 2.3% for global construction peers. OC trades on a 2022e P/E of 4.4x, 63% below peers, which we see as unjustified. Net incom...
Summary Mohammad Al-Mojil Group - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Mohammad Al-Mojil Group (MMG) is a construction company. It provides general contracting services for onshore and offshore oil and gas, and petrochemical projects. It offers constructi...
The independent financial analyst theScreener just requalified the general evaluation of ARABTEC HOLDING SUSP - SUSP.24/09/20 (AE), active in the Heavy Construction industry. As regards its fundamental valuation, the title still shows 1 out of 4 stars and its market behaviour is seen as risky. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Negative. As of the analysis date September 25, 20...
Best play on the sector, upgrade TP on improving outlook. OC offers ideal exposure to the MENA construction sector, trading at a highly attractive 2020e EV/EBITDA and P/E of 0.5x and 3.8x, respectively, while offering a 2019-21e EPS CAGR of c14%. This comes on top of a lucrative 2020e dividend yield of 9.2%, stemming from a 2020e payout ratio of 35%. An upward revision of our 2020e assumptions (revenue and net income revised by c11% and c13%, respectively, on a 16% upward revision of 2019e award...
OC reported 3Q19 revenue of USD790mn, up 8.3% y/y and down 0.1% q/q. MENA accounted for 65.1% of revenue in 3Q19 vs 73.3% in 2Q19 and 68.3% in 3Q18. EBITDA came in at USD57mn in 3Q19, down 2.2% y/y and 20.5% q/q, owing to provisions booked related to MEI in the US. Attributable net income came in at USD32mn, up 10.7% y/y and 2.9% q/q. The 81.2% sequential improvement in MENA attributable net income was offset by the USD21mn loss generated from US operations. BESIX contribution to bottom line rec...
Saudi construction market to outperform, replenishing the region’s backlog. 2019 marks a strong comeback for the Kingdom, with 2019 y-t-d award intake recording an 82% hike to USD29bn, boosted by aggressive investments in the oil, gas, and water segments. This represents 38% of MENA 2019 y-t-d new awards of USD75bn (-13% y-o-y), compensating, to a large extent, for the 40% and 70% drop in the UAE and Egypt’s awarded projects. The Kingdom’s 2019-20e pipeline includes USD70bn worth of projects (ou...
OC reported Q2 19 revenue of US$790mn, up 5.3% yoy and 12.0% qoq, owing to a 21.3% yoy and 7.8% qoq increase in MENA revenue (MENA accounted for 73.3% of revenue). EBITDA came in at US$72.1mn in Q2 19, up 38.7% yoy and 2.6% qoq. Attributable net income came in at US$31.3mn, down 38.1% yoy and up 3.6% qoq. The annual decline in profitability was driven by: 1) higher interest expense, and 2) lower contribution from BESIX (US$8.5mn vs US$17.2mn in Q2 18).
Maintain expectation of a sustained long-term gas deficit. We cut our demand estimates by 4-7% over 2018-21, mainly due to the impact of global externalities (higher oil prices and capital outflows from EM economies), on economic growth and gas demand. We hold our supply and pricing forecasts roughly unchanged. We also maintain our view that Egypt will remain a gas deficit nation beyond 2020e, despite the drastic supply improvement – Egypt’s natural gas supply should grow at a 2017-20e CAGR of 1...
Egypt offers the highest sustainable growth. Egypt has been outperforming its GCC peers over the past half-decade in terms of growth, with a steady 20% CAGR in cash spending on construction activity (USD24bn in 2018e). Egypt’s 1H18 award intake came in at USD18bn, burgeoning by 125% y-o-y, with 2018 total awards seen at USD36bn. The country’s 2018-19e pipeline stands at USD20bn, USD11bn out of which is power projects, while the balance mainly pertains to infrastructure projects. The interest on ...
Raise TP on margin upgrades, higher granted value to Besix. We raise our TP on OC’s Nasdaq listing by 8.5%, and EGX listing by 19.4%, to USD11.5/share and EGP203/share, respectively, the latter bolstered by a weaker EGP. The drivers are higher group margins, driving a 2017-19e EBITDA CAGR of 10%, and an improved cash cycle at Besix, valued at 1x P/B valuation, up from 0.7x. OC is cheap, trading on a 2018e EV/EBITDA of 4.4x, 50% below EM peers, and whilst its working capital drained 2017 cash flo...
Full P&L recovery around the corner, receivables the next leg. Arabtec was profitable for the fourth consecutive quarter in 4Q17, and with AED17.2bn in backlog, 2x billings. As zero-margin legacy projects (estimated at c25% of backlog) are progressively phased out by 3Q19, we foresee a 2017-19 EBITDA CAGR of 26%. A major shortcoming of 2017, though, was that working capital left operating cash flow negative. For us, Arabtec will be cleared once claims and aged receivables are settled, which is a...
Arabtec has released its Q3 2017 figures showing a slight increase of 5.66%, yoy, in its revenue to AED2,099m. On the other hand, the direct costs decreased by 7.7%, yoy, which resulted in an increase of the company’s gross margin to 5.47% (vs. -8.22% in Q3 2017). The company continued to carefully manage its general and administrative expenses which decreased by 27.3%, yoy, to AED80m (3.8% of its revenue) in Q3 2017 vs.
Arabtec has released its Q2 2017 figures, showing a 6% decrease, yoy, in its revenue to AED2.06bn. Similarly, the direct costs went down by 10.5%, resulting in a gross profit of AED104m, 20x higher than the previous year. The company was able to shrink its general and administrative expenses by 52.5% to AED73m, comparing to AED155m in Q2 2016. Arabtec reported a Q2 2017 net profit of AED40.8m, marking a jump from the previously recorded losses of AED194.8m during Q2 2016.
Arabtec has released its Q2 2017 figures, showing a 6% decrease, yoy, in its revenue to AED2.06bn. Similarly, the direct costs went down by 10.5%, resulting in a gross profit of AED104m, 20x higher than the previous year. The company was able to shrink its general and administrative expenses by 52.5% to AED73m, comparing to AED155m in Q2 2016. Arabtec reported a Q2 2017 net profit of AED40.8m, marking a jump from the previously recorded losses of AED194.8m during Q2 2016.
Downgrade earnings. EGP liberalisation should allow for increased project finance and FDI, but we reduce 2017-18e EPS by an average of 16% due to: i) translation of EGP-backlog (26% as of 3Q16) plus ii) lower margins on US provisioning and long term Egypt margins falling to EM norms. We cut our TP by 10% to USD9.00/share which on end-2017e USD:EGP of 14.35 is EGP130/share. Given a 6M rally of 102%, outperforming EGX30 by 36%, this warrants a downgrade to Neutral. The 2017e P/E implied by our TP ...
ï‚· Arabtec completes recapitalization program, including the AED 1.5bn rights offering with the subsequent capital reduction of AED 4.6bn which swipe cleaned c.100% of accumulated losses. Ex-date (post share number and price restatement) is set for June 28, 2017 ï‚· Share cancellation acts as a reverse stock split- we expect ARTC to open trading at AED 2.97/share ï‚· We adjust our TP to AED 0.47/share (AED 1.90/share when adjusted for share cancellation), reiterate Sell
Sales mix finally allows for margin uplift. We expect OC’s EBITDA margin will rise to 6.8% for 2Q-4Q17e, up from 5.4% in 1Q17 and 2.5% in 2016, even with full potential charge of USD88.4mn in mechanic liens on a US project. Drivers are healthy margins for the rump of OCI N.V. backlog and IFCo handover by 3Q17e. Our new 2017 EPS estimate (12% upgrade on higher margins) implies 5.7x P/E or 3.6x, assuming OC is not liable for mechanic liens. We raise our TP for OC’s Nasdaq listing by 18% to USD10.6...
Arabtec has released its Q1 2017 figures showing a 12% increase, yoy, in its revenue to AED2171m. On the other hand, the company’s direct costs increased by 10%, which resulted in doubling the gross profit, compared to a year earlier, to AED91m (4% gross margin vs. 2% in Q1 2016). The company continued to carefully manage its General and administrative expenses, which decreased by 11% to AED92m (4.3% of its revenue) in Q1 2017 in comparison to AED103m (5.3% of its revenue) in Q1 2016. On the b...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.