SODIC - Valuation Update

​We raise SODIC`s fair value to EGP 18.5/share up from EGP 15.4/share (+20%) as we apply higher pricing hikes in 4Q2016 and 2017 of c. 20%, substituting for cutting down the target debt weight to an average of 20% over the horizon down from our previous assumption of 50%, guided by 9M2016 debt weight and the anticipated needed financing for the yet un-launched projects. Hence, we currently advice a “Buy” for SODIC although we are currently utilizing a higher average WACC of c. 20% (c. +200...