Embed Size (px)
Citation preview
PRIME INVESTMENT RESEARCH AUTOMOTIVE |EGYPT
GB AUTO – INITIATION OF COVERAGE JANUARY, 14TH
2016
PRIME INVESTMENT RESEARCH
HOUSING|EGYPT TALAAT MOUSTAFA GROUP
FEBRUARY, 23RD 2016
We valued TMGH on a DCF – SoTP basis at EGP 15.4/share, providing a massive upside potential of 85% over the previous market close; mainly supported from assuming a full monetization program for Madinaty`s massive commercial land by 2030, providing EGP 9.71/Share, equivalent to 59% of the group`s Enterprise Value of EGP 16.45/share. The residential developments in Madinaty city, are expected to add around EGP 4.55/Share equivalent to 28% of EV; hence, c. 86.6% of our estimated EV comes from Madinaty, indicating high concentration risk, in case our modest valuation scenario failed to be true. However, to accommodate such downside, we forecast a slowdown in pricing power starting in 2018/2019 (lower clientele purchasing power), while maintaining higher costs growth, over the horizon in time we set a slowly upward areas` sales scheme.
We valued TMGH at an average WACC of 16.4%, utilizing an updated estimate for the post tax risk free rate of 13.0% in 2017, and 12.0% in 2018 and 2019, and 10.0% thereafter, driven from the EGY-US inflation differential methodology; in addition to a risk adjusted beta of 1.16. Over our valuation horizon we assumed a target debt to capital of c. 15-20% driven from adjusting 9M2016 debt portion held in foreign currencies of around USD 190mn to the post flotation expected value. We assumed such debt weight to prevail in order to cover the financing gap needed to develop the group`s land bank in addition to revolving the hospitality segment portion. It's worthy to highlight that the group also has c. USD 140mn of monetary assets, hence mitigating the USD 190mn debt portion impact on our FCFF valuation model.
TMG is Egypt`s largest real estate developer in terms of track record, and currently held backlog, of over EGP 22.6bn; TMG has the largest privately owned land bank of 43.3mn, out of which 33.6mn solely represent Madinaty, the largest under-development mixed-use community in Cairo, planned to feature 111K apartments and villas, from which the government is entitled to receive 28.79K apartments as its revenue share for the project`s allocated land, equivalent to 19.2% of the project`s residential BUA. The project`s land has been subject to disputes raised by third parties and another by NUCA, currently awaiting rulings, concerning 1) the land allocation procedures, which we do not see any adverse risk from, as the government`s revenue share has been previously adjusted upwards from 2.7mn Sqm of BUA to 3.19mn Sqm as a sort of compensation, besides the long awaited investment law which is believed to come out with more incentives concerning such disputes, 2) TMG is currently in facing another dispute concerning increasing Madinaty`s dedicated commercial land area, out of such balance c. EGP 1.8bn remains outstanding, which we fully consider in valuation, although the company has an upside of winning the case and reverse the payment to as much as EGP 900mn only as indicated by the management.
Madinaty, TMG jewel, is believed to gain more momentum and traffic strongly over the upcoming period, with heavy migration believed to start targeting the area, following the recent more aggressive price hikes in the first and fifth settlements in East Cairo, leading to more attention turning into the Suez side of East Cairo, as TMGH flagship is believed to strongly benefit from the development of Egypt`s new administrative capital city, besides, peers launching new ventures in proximity, mainly the new born Sarai developed by MNHD, in which Palm Hills is co-developing Capital Gardens, hence supporting an upward pricing in the area.
Al Rehab City, Egypt`s first large scale mixed-use community, has still c. 1.3K of remaining units equivalent to c. EGP 1.9bn as per our estimates to be sold in 2017-2019, with the city`s full recognition expected by 2022, while Al Rabwa Villas are almost over with c. 7 unsold units estimated to yield EGP 50mn in 2017, with the project`s full residential delivery expected to be concluded by early 2020.
In 2016, we believe TMG net sales will come in the range of EGP 7.36bn with revenues amounting to c. EGP 6.84bn; we expect net sales to grow to EGP 8.27bn in 2017 (+12% YoY) thanks to higher contribution from commercial sales (EGP 2.14bn in 2017), while we see revenues growing to EGP 7.27bn (+6% YoY).
TMGH … The first well diversified RE business model … awaits the opportunity
to unlock Madinaty`s Commercial Land … the key to valuation …
“STRONG BUY” MARKET PRICE EGP 8.34 FAIR VALUE EGP 15.42 UPSIDE 84.9%
INVESTMENT GRADE “GROWTH”
Stock Data Outstanding Shares [in mn] 2,063.56 Mkt. Cap [in mn] 17,767.27 Bloomberg – Reuters TMGH EY / TMGH.CA 52-WEEKS LOW/HIGH EGP 4.65– EGP 10.04 YTD AV. DAILY TURNOVER EGP 66.3MN
Ownership TMG for RE & Tourism Investment 43.16% Alexandria Construction Co. 8.03% Abd El Moneim Rashed 5.04% Others & Free Float 43.8%
Source: Bloomberg
Mohamed Marei Senior Analyst [email protected]
Dir.: +202 – 33005725
0
2
4
6
8
10
12
22-0
2-20
16
22-0
3-20
16
22-0
4-2
016
22-0
5-20
16
22-0
6-2
016
22-0
7-20
16
22-0
8-2
016
22-0
9-2
016
22-1
0-2
016
22-1
1-20
16
22-1
2-20
16
22-0
1-20
17
TMGH EGX 30 - rebased
2
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
SOURCE: PRIME
TMGH Valuation - in EGP mn Estimated
Value Per
Share Effective
Ownership Value per
Share Contribution
to EV Residential Valuation
Madinaty 9,393.46 4.55 99.9% 4.55 27.6%
Al Rehab Rehab 1,029.31 0.50 99.9% 0.50 3.0% Rabwa 79.67 0.04 99.6% 0.04 0.2%
Total Residential 10,502.43 5.09
5.08 30.9% Commercial Valuation
Madinaty
Regional. Districts & Sector centers to be
sold as BUA 9,949.20 4.82 99.9% 4.82 29.3%
Residual 5mn Sqm of Land - Sold as Land 10,114.36 4.90 99.9% 4.90 29.8% Rehab - commercial 631.43 0.31 99.9% 0.31 1.9% Total Commercial 20,694.99 10.03
10.02 60.9%
Hospitality Segment Valuation
Four-seasons Sharm 797.19 0.39 77.9% 0.30 1.8% Four-seasons Nile Plaza 1,716.33 0.83 77.9% 0.65 3.9%
Four-seasons San Stefano 493.84 0.24 65.8% 0.16 1.0% Kimpinsiki 311.86 0.15 77.9% 0.12 0.7%
Total Hospitality 3,319.23 1.61
1.22 7.4% Rental Properties
San Stefano 152.28 0.07 100.0% 0.07 0.4%
Rehab 46.14 0.02 99.9% 0.02 0.1% Madinaty 31.74 0.02 99.9% 0.02 0.1%
Rabwa 27.49 0.01 99.6% 0.01 0.1%
Total Rental Properties Value 257.65 0.12
0.12 0.8%
Enterprise Value
33,949.38 16.45
Add : Cash (9M2016 adjusted to flotation)
3077.77
Add : HFS
80.05
Add : HTM
2,408.11
Add : Assets at Fair Value through P&L
59.78
Less: Debt (9M2016 adjusted to flotation)
4,791.32
Less: Current Madinaty Land Settlement Liability
1,794.56
Less: Minority Interest
1,159.03
Equity Value
31,830.17 15.42
Market Cap
17,210.11 8.34
Upside Potential
85.0%
3
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
SOURCE: PRIME
c. EGP 120bn of sales from Madinaty in 2016-2030, driven from c. 7.4mn Sqm of BUA
Real Estate Operations (EGP 5.08/Share) … A massive upside story, with worries from
concentration risk … Following the EGP floatation TMG management rerated its residential offering by 30% in 4Q2016, leading to c. EGP 7.36bn of estimated net sales in 2016, thanks to Madinaty residential sales, believed to record the strongest figure since 2008, estimated to reach EGP 5.97bn and record over 37% increase over 2015 residential sales of EGP 4.35bn, however, driven by the recent price hikes on the expense of lower units` sales as we see 4Q2016 BUA sales as 52% lower QoQ and 22.5% lower versus 4Q2015. Although over the horizon, Madinaty consecutive phases` launches represent the main residential pillar, we also see Al Rehab City remaining residential BUA as an ongoing sales support, with EGP 1.94bn of expected sales in 2017-2019.
Concerning the nearly fully developed Al Rabwa project, TMG`s only venture in West Cairo, we estimated 2016 sales to be represented by the 9M2016 performance recording EGP 93.6mn, while in 2017 we anticipate the full closure of the project by selling the remaining 7 Villas, at an estimated EGP 50.2mn, equivalent to EGP 21.5K/Sqm.
In 2016, we believe the average price for the year will come in the range of EGP 12K/Sqm for apartments in Madinaty, which is expected to grow by 18% to EGP 14.2K/Sqm in 2017, to accomdate the full effect of 4Q2016 price increase in addition to an c. 10% extra rerating, going forward. Conercing Madinaty Villas we believe that 2016 average price will come in the range of EGP 17.3/Sqm, which is expected to grow to EGP 19.5K/Sqm in 2017, representing c. 13% growth. We assume the same pricing growth to be applied to Al Rehab remaining units in 4Q2016 and 2017. Going forward, we believe price increases might be capped to an average of 3% starting from 2018, as construction costs should be coming down, taking into consideration the current recent declines in building materials costs relative to 2016 end. As a cosequence to such price hikes, we believe that total sales value for Madinaty and Al Rehab will be adversely impact, as the hike in prices is not seen sufficient to overcome the drop in demand, as we expect BUA sales in Madinaty to fall to 369K Sqm in 2017 down from 2016 estimated BUA sales of 451K sqm, while in Al Rehab, we expect BUA to drop to 21K Sqm down from 2016 estimated 36K Sqm.
- 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00 550.00 600.00 650.00 700.00
-
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
2016 2018 2020 2022 2024 2026 2028 2030
Madinaty Sales Value EGP Bn BUA Sold (RHS) - in `000 Sqm
-
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
20,000.00
22,000.00
- 50.00
100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00 550.00 600.00 650.00 700.00
2016 2018 2020 2022 2024 2026 2028 2030
Apartments BUA - in `000 Sqm Villas BUA - in `000 Sqm Blended Av. Price/SQm (RHS)
-
20.00
40.00
60.00
80.00
100.00
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
2016 2017 2018 2019
Al Rehab Sales Value EGP Bn BUA Sold (RHS) - in `000 Sqm
-
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2016 2017 2018 2019
Apartments BUA - in `000 Sqm Villas BUA - in `000 Sqm Blended Av. Price/SQm (RHS)
4
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
SOURCE: PRIME
SOURCE: PRIME
SOURCE: PRIME
Madinaty Residential Assumptions – in EGP mn 2017E 2018E 2019E 2020E 2021E Recognized Revenues 3,179.7 4,476.0 6,138.3 6,695.6 6,178.6
Development Costs 2,261.7 2,853.7 3,533.2 3,816.9 3,408.9 Net Contracted Sales 5,439.1 5,875.0 6,944.2 7,817.3 8,649.8
% Change -9.0% 8.0% 18.2% 12.6% 10.6% Change in WC 425.1 379.7 (249.0) (46.2) 234.8
FCFF 739.8 1,270.8 1,329.2 1,689.9 1,846.6 Total Residential Value 9,393.5
Al Rehab Residential Assumptions – in EGP mn 2017E 2018E 2019E 2020E 2021E Recognized Revenues 2,075.6 744.4 463.0 268.6 821.7
Development Costs 1,372.2 468.5 300.6 190.0 617.4 Net Contracted Sales 290.1 821.7 955.5 - -
% Change -47.2% 183.2% 16.3% NA NA Change in WC (153.2) 242.0 148.8 156.6 (20.1)
FCFF 346.5 395.5 209.5 213.7 125.9 Total Residential Value 0.50
Al Rabwa Residential Assumptions - in EGP mn 2017E 2018E 2019E 2020E 2021E Recognized Revenues 229.2 145.6 74.9 40.1 -
Development Costs 152.9 101.6 52.2 28.0 - Net Contracted Sales 50.2 - - - -
% Change -46.4% NA NA NA NA Change in WC (22.3) 4.3 8.9 4.3 7.7
FCFF 30.7 36.4 25.4 13.2 7.7 Total Residential Value 79.35
5
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
SOURCE: PRIME
An upside momentum is seen, with over EGP 150bn of sales estimated
SOURCE: PRIME
Commercial Operations (EGP 10.02/Share) … Key to TMGH valuation, representing the group`s
biggest potential and risk simultaneously …
Madinaty Commercial Land …
TMGH owns the largest available for sale commercial land plot among peers, owning 8mn Sqm of land in Madinaty with initial to include 4.09mn Sqm of BUA, dedicated to the establishment of regional malls, sector centers (Banks complexes, Office building, Schools, Medical centers, etc.) and district centers (smaller commercial/retail areas, greenery, parking, administrative, etc.) which acts as the direct outlet for residents` daily needs.
TMGH has plans for selling around 5mn sqm of the land dedicated for the establishment of regional malls and other non-residential activities, while developing the remaining area c. 3mn Sqm, to be sold as BUA and/or leased on a 40:60 basis in order for the company to support its cash flows rapidly by the direct sales while cementing its future recurring income streams.
Throughout the horizon, we assume that TMGH will sell the 5mn Sqm of commercial dedicated land in 2017-2030 as land plots, yielding EGP 81.4bn of sales value. We assume that TMGH will develop the remaining commercial land plot of c. 3mn, to be fully sold as BUA up to 2030, rather than applying the 40:60 sale/lease. Hence yielding EGP 99.6bn of sales, mainly on the back of the company`s pricing power, as we estimate 2017 selling price at EGP 70K/Sqm, a new pricing level that seems to be the current market average after some commercial units were sold at Badr City in proximity, at EGP 60.25/Sqm for small retail units, and up to EGP 70.1K/Sqm for Hyper Market and bigger retail spaces.
We valued both plots on a DCF basis, yielding EGP 9.71/Share, divided as 1) EGP 4.90/share from the sale of 5mn Sqm of land plots, with prices assumed in 2017 at EGP 13.5K/Sqm and to grow modestly at 2-3% over the horizon. And 2) EGP 4.82/share driven from the sale of 1.3mn of developed BUA, which was driven from the residual land area after factoring in the 5mn Sqm of land area sales. We assume a payment plan of 4 years for developed BUA, while factoring in a 3 years payment plan for the 5mn Sqm, as throughout our assumptions, we forecast the sale of mega land plots, which should rationally receive favorable payment plans. it is worthy to mention that we assume no addition to the Madinaty`s current leasable assets, which were excluded from the commercial sellable land and BUA area.
Madianaty Commercial Assumptions – in EGP mn 2017E 2018E 2019E 2020E 2021E Commercial BUA Revenues 149.0 98.0 111.5 2,007.9 2,048.0 Commercial Land Revenues 135.0 344.3 561.8 1,074.5 2,191.9
Infrastructure & Development Costs 51.9 50.0 67.5 653.9 735.1 Net Contracted Sales 2,142.9 2,392.3 3,354.6 4,332.7 5,915.6
% Change NA 11.6% 40.2% 29.2% 36.5% Change in WC 142.6 376.0 703.2 -402.7 -342.0
FCFF 188.5 530.7 963.4 1,197.5 1,992.7 Total Commercial Value 20,063.6
-
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
-
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
2017 2019 2021 2023 2025 2027 2029
Sales Value - EGP mn Land Area Sales in `000 Sqm (RHS)
-
50.00
100.00
150.00
200.00
250.00
-
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
2017 2019 2021 2023 2025 2027 2029
Sales Value - EGP mn BUA Sales - `000 Sqm (RHS)
6
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
SOURCE: PRIME
A gradual and conservative recover in occupancy, along with a smooth upward pricing, thanks to EGP/USD foreseeable levels
Hospitality Operations (EGP 1.22/Share) … benefiting from the EGP flotation, in time tourists
arrivals` are expected to pick up …
TMGH currently operates 4 of Egypt`s most preferred hospitality spots, 2 of which are located on Egypt`s Nile river in Cairo`s downtown, another located in Sharm El Sheikh, and the last one, overlooking Alexandria`s shore. The geographic distribution of such properties, have always provided the company with a crucial diversification and hedging property, as the Nile river and Alexandria properties, are known to host residents; besides tourists related conferences, celebrations, and other huge events, that contribute strongly to such segment operations, other than the room revenues, which also depends on domestic traffic and business trips other than the flow created from tourists` arrivals. An aspect that helped TMG mitigate the downside impact of Egypt`s tourism hit that casted its shadow over Sharm El Sheikh Four Seasons hotel operations.
Over the upcoming few years, we anticipate a stronger contribution from the hospitality segment to the group`s operations, thanks to the EGP devaluation, which is seen as a strong catalyst for a shift in absolute earnings. Besides, capturing the upside potential of more European countries removing the travel ban on Egypt, which is seen as a direct positive development for such activity. Over the span of 2017 we anticipate the return of Russian tourists, in 2H2017 as a worst case scenario, following statements from the Egyptian and Russian security delegations concerning airports safety and current measures being taken to ensure the Russian side about safety measures. An aspect seen as positively correlated with higher occupancy rates; hence an expected revival for Sharm El Sheikh severely impacted room rates, as the return of Russians to Sharm El Sheikh shores would act as a strong incentive for ensuring other nationalities about Egypt safety measures.
TMGH operates a total of 875 rooms, and is currently in process to enlarge its hospitality operations, through speeding up Sharm El Sheikh Four Seasons hotel expansion, expected to add 99 rooms, beside proceeding with the construction of Madinaty`s first hospitality segment "Four Seasons Madinaty". Although we expect Sharm El Sheikh expansion to be concluded in 2018/2019, and for Madinaty`s hospitality venture to be operational by 2020, we chose not to include such expansions in our estimates as a conservative measure, until we see significant indications concerning their operational launch. However, it is worthy to mention that both ventures would have positive impact on the company`s other operational segments, as Sharm El Sheikh Four Seasons expansion would be operational in time Egypt`s tourism gets healthier, while Madinaty`s Four Seasons, would act as a strong catalyst for unlocking more investors` interests in the company`s huge available for sale commercial properties and land in Madinaty, besides, being the first of its category to be operational in this part of East Cairo. TMGH has plans to reach up to 5000 hotel rooms in the foreseeable future, in case it was able to launch other ventures as well, including the 750 room keys in Marsa Alam with 2250 residential property, and 201 room keys in Luxor.
0%
20%
40%
60%
80%
2015 2016 2017 2018 2019 2020 2021
Four Seasons - Sharm Four Seasons - Nile Plaza
Four Seasons - San Stefano Kempinski
0
200
400
600
2015 2016 2017 2018 2019 2020 2021
Four Seasons - Sharm Four Seasons - Nile Plaza
Four Seasons - San Stefano Kempinski
7
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
Rental & Leasable Properties (EGP 0.12/Share) … Currently minor in size, but has huge
potential to grow …
TMGH currently operates minor plots of recurring income properties, around c. 30K GLA, divided across the group`s residential projects, as a mean for accommodating residents, over the upcoming few years, such segment should start contributing majorly to TMGH consolidated revenues and net profit thanks to its high margins nature, as the company proceed with constructing more leasable facilities mainly in Madinaty (currently modeled as BUA sales rather than leasable) which should significantly enhance the company`s recurring income streams.
8
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
SOURCE: TMGH, PRIME
Financial Statements … Historical & Forecast Income Statement Brief Hist. Forecast
In EGP Mn 2015 2016E 2017E 2018E
Revenues 6,180.4 6,849.5 7,265.8 7,741.4 Change 17.25% 10.83% 6.08% 6.55%
COGS 4,051.7 4534.8 4783.4 4517.9 Change 10.2% 11.92% 5.48% -5.55%
Gross Profit 2,128.7 2,314.8 2,482.4 3,223.5 SG&A 312.2 564.8 661.0 750.1
Depreciation & Amortization 129.4 139.8 142.4 145.1 EBITDA 1,816.4 1,749.9 1,821.4 2,473.3
Net Income After MI 761.6 926.1 10,47.9 1,561.3
Balance Sheet Brief Hist. Forecast
In EGP Mn 2015 2016F 2017F 2018F
Cash 1,541.5 1,927.4 2,888.3 2,378.8 Account Receivables 15,272.8 16,460.1 18,031.5 20,006.2
Work in Process 19,214.4 18,954.5 18,804.6 19,052.2 Other Current Assets 2,620.5 3,053.5 3,196.6 3,361.3
Total Current Assets 38,649.2 40,395.5 42,920.9 44,798.6
Net PPE 3,940.1 3,882.3 3,823.5 3,763.5 Goodwill & Intangible Assets 14,649.7 14,649.7 14,649.7 14,649.7
Other LT-Assets 11,084.6 11,048.4 11,014.2 10,982.3
Total Long Term Assets 21,794.2 21,815.8 21,840.4 21,868.4
Total Assets 60,443.4 62,211.2 64,761.4 66,667.0
Liabilities STD - incl CPLTD 10.5 15.0 19.2 25.0
Contractors, suppliers and notes payable 4,107.7 3,638.9 2,581.1 2,072.1 Creditors and other credit balances 3,995.1 4,381.9 4,622.1 4,365.6
Advances - customers 19,317.7 20,665.4 21,902.1 23,731.0 Other Current Liabilities 1,759.8 1,616.5 1,774.1 1,781.1
Total Current Liabilities 29,180.3 30,302.7 30,879.5 31,949.9
LTD 1,733.7 3,420.0 2,992.5 2,618.4 Other Long Term Liabilities 1,873.8 1,673.4 1,472.9 1,272.5
Total Long Term Liabilities 3,607.5 5,093.4 4,465.4 3,890.9
Total Liabilities 32,787.8 35,396.1 35,344.9 35,840.8
Equity Paid-in-Capital 20,635.6 20,635.6 20,635.6 20,635.6
Reserves 282.4 319.4 361.3 423.8 RE 5,062.9 5,697.6 6,439.7 7,264.4
Net Profit for the Period/Year 761.6 926.1 1,047.9 1,561.3 Minority interest 901.0 910.2 919.3 928.5
OCI Net Balnce 12.1 -1,673.7 12.6 12.6
Total Equity 27,655.6 26,815.1 29,416.4 30,826.1
Margins & Ratios
2015 2016F 2017F 2018F
GPM 34.44% 33.79% 34.17% 41.64% EBITDA Margin 29.39% 25.55% 25.07% 31.95%
NPM 12.32% 13.52% 14.42% 20.17% EPS 0.37 0.45 0.51 0.76 P/E 22.60 18.58 16.42 11.02 DPS 0.144 0.07 0.08 0.12 DY 1.73% 0.83% 0.93% 1.39%
ROA 1.26% 1.51% 1.65% 2.38% ROE 2.75% 3.40% 3.73% 5.18%
Debt/Equity 10.72% 17.87% 15.20% 13.75%
9
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
Stock Recommendation Guidelines
Recommendation Target-to-Market Price (x)
Buy x > 15%
Accumulate 5%< x <15%
Hold -5% < x < 5%
Reduce -15% < x < -5%
Sell x < -15%
Strong Buy x > 40%
Investment Grade Explanation
Growth 3 Yr. Earnings CAGR > 20%
Value Equity Positioned Within Maturity Stage of Cycle
Speculative Quality Earnings Reflect Above Normal Risk Factor
10
PRIME INVESTMENT RESEARCH TMGH
FEBRUARY, 2017
PRIME SECURITIES
Hassan Samir Managing Director +202 3300 5611 [email protected]
RESEARCH TEAM
Aboubakr Emam, CFA Head of Research +202 3300 5724 [email protected]
Eman Negm, MSc Senior Economist +202 3300 5716 [email protected]
Mohamed Marei Senior Equity Analyst +202 3300 5725 [email protected]
Ali Afifi Equity Analyst +202 3300 5723 [email protected]
Omneya El Hammamy Equity Analyst +202 3300 5718 [email protected]
Taher Seif Equity Analyst +202 3300 5719 [email protected]
Mohamed Magdi Equity Analyst +202 3300 5720 [email protected]
Mai Abdelaziz Junior Analyst +202 3300 5727 [email protected]
SALES TEAM
Mohamed Ezzat Head of Sales & Branches +202 3300 5784 [email protected]
Shawkat Raslan Heliopolis Branch Manager +202 3300 5110 [email protected]
Amr Saber Team Head – Institutions Desk +202 3300 5659 [email protected]
Amr Alaa, CFTe Manager +202 3300 5609 [email protected]
Mohamed Elmetwaly Manager +202 3300 5610 [email protected]
Emad Elsafoury Manager +202 3300 5624 [email protected]
HEAD OFFICE
PRIME SECURITIES S.A.E.
Regulated by CMA license no. 179
Members of the Cairo Stock Exchange
2 Wadi El Nil St., Liberty Tower,
7th-8th Floor, Mohandessin, Giza, Egypt
Tel: +202 33005700/770/650/649
Fax: +202 3760 7543
Disclaimer Information included in this report has no regard to specific investment objectives, financial situation, advices or particular needs of the report users whether they received them directly or through any research pool and other specialized websites. The report is published for information purposes only and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Unless specifically stated otherwise, all price information is only considered as indicator. No express or implied representation or guarantee is provided with respect to completeness, accuracy or reliability of information
included in this report.
Past performance is not necessarily an indication of future results. Fluctuation of foreign currency rates of exchange may adversely
affect the value, price or income of any products mentioned in this report.
Information included in this report should not be regarded by report users as a substitute for the exercise of their own due diligence
and analysis based on own assessment and judgment criteria. Any opinions given are subject to change without notice and may
significantly differ or be contrary to opinions expressed by other Prime business areas as a result of using different assumptions and
criteria. Prime Group is under no obligation responsible to update or keep current the information contained herein.
Prime Group, its directors, officers, employees or clients may have or have had interests or long or short positions in the securities
and/or currencies referred to herein, and may at any time make purchases and/or sales in them as principal or agent.
Prime Group, its related entities, directors, employees and agents accepts no liability whatsoever for any loss or damage of any kind
arising from the use of all or part of these information included in this report whether it is received directly or through research pools
and other specialized websites. Certain laws and regulations impose liabilities which cannot be disclaimed. This disclaimer shall, in no
way, constitute a waiver or limitation of any rights a person may have under such laws and/or regulations.
Furthermore, Prime Group or any of the group companies may have or have had a relationship with or may provide or have provided
other services, within its objectives to the relevant companies. Prime Group 2017 all rights reserved. You are hereby notified that
distribution and copying of this document is strictly prohibited without the prior approval of Prime Group.
