Equity Analysis /
Egypt

EKHO 2017 results: In line with estimates; catalysts to unlock value

    Tellimer Research
    19 February 2018
    Published byTellimer Research
    EKH’s board has proposed a cash dividend of USD0.05 (5% DY vs. Pharos est. 6%) , and is currently trading at 9x P/E2018e and 1.5x P/B17a. Despite market price hitting our FV, we believe that current expansion plans, a new MDF plant, untapped natural gas reserves, and the liberalization of the energy sector will unlock further upside. We continue to Overweight the stock.