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....
We expect the turnkey segment to be the sole segment that generates meaningful growth going forward. However, we do not rule out that the company might elect to grow inorganically through M&A activity such as the recent acquisition of three wind farms and one hydro-electric plant in Greece that took place in mid 2019. While such acquisitions will drive top-line growth, it could possibly weigh down on margins going forward. It is worth noting that we do not account for inorganic growth in our val...
El Sewedy Electric (SWDY) reported 2Q19 revenue of EGP10,330mn, up 2.1% y/y and down 8.0% q/q. The sequential decline was mainly driven by 16.4% decline in wires and cables sales in tandem with the sequential decline in global copper prices recording USD6,129/ton vs USD6,219/ton in 1Q19, while EGP strengthened to 17.01/USD against 17.6/USD in 1Q19. It is worth noting that the Turnkey segment and meters segment were the only segments that grew sequentially.
Government spending to drive growth • Awards in Egypt will remain highly skewed towards infrastructure investments due to high interest rates and low return on investment. • Water treatment, renewables, transmission & distribution, road works will continue to drive awards, whereas power generation awards in Egypt likely to fall since current power generation capacity exceeds consumption significantly.
SWDY reported 1Q19 revenue of EGP11,224mn, up 12.4% y/y and down 7.8% q/q. Top line declined sequentially on turnkey operations as the segment’s revenue declined 30.9% q/q. The GPM deteriorated on a quarterly basis to 16.1% versus 16.6% in 4Q18. Attributable net income came in at EGP957mn, down 31.7% y/y and 35.7% q/q. Bottom line declined on the back of 1) higher operating expense, 2) lower net interest income, 3) lower equity method income, and 4) higher tax expense (33.3% effective tax rate...
Turnkey revenues bolster top line. SWDY reported Q4 18 revenue of EGP12,175mn, up 12.8% y/y and 19.2% q/q. Turnkey segment bolstered . The GPM deteriorated on a quarterly basis to 16.6% versus 17.4% in Q3 18. Attributable net income came in at EGP1,489mn, down 17.3% y/y due to normalization post the accumulation of cheap inventory and up 31.8% q/q.
While we expect cables’ sales volume to grow on the back of the government’s investments in transmission and distribution lines as part of the government’s plan to connect and upgrade new and existing power plants to the national grid, we downgrade our estimates for the segment’s GPM to 13.8% in FY19 versus 15.5% previously on lower than expected gross profit/ton attained by the company post normalization in 9M18.
​We upgrade our fair value for El Sewedy Electric (SWDY.CA) by 55.7% from EGP 62.8/share to EGP 97.8/share following the floatation of the EGP, which took place back in November 2016. We assign an “ACCUMULATE†rating for the stock; and an upside potential of 10.6%. This upgrade came on the back of the floatation with El Sewedy being in perfect position to reap its benefits. We await the company’s announcement of 4Q2016 results, which could affect our valuation of the company due to the e...
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