Equity Analysis /

Ezz Steel: EZZ STEEL: Stellar performance in 2Q18 as margins expand

    Tellimer Research
    14 August 2018
    Published byTellimer Research
    EZDK released 1H18 financial indicators. 2Q18 revenue came in at EGP10,293mn, up 55% y/y and 7% q/q. Average steel prices recorded EGP12,557/ton in 2Q18, up 28% y/y and 3% q/q. In our view, prices are likely to rise modestly in 2H18 (in the range of 2.5% - 3.5%) to reflect the recent hike in electricity prices. The GPM expanded to 16.6% versus 14.1% in 2Q17 and 14.8% in 1Q18. Net income came in at EGP898mn, up 97% y/y and 26% q/q.