Equity Analysis /
Egypt

Lecico Q4 17: Gradual path to recovery – Maintain OW on FV of EGP8/share

    Tellimer Research
    6 March 2018
    Published byTellimer Research
    In our view, operations are gradually recovering, driven mainly by the sanitary ware performance. We expect the tile segment operations to remain challenging in FY18. We reiterate our FV of EGP8.00/share, which takes into account 1) revenues growing at a CAGR of 10.6% over our forecast horizon, 2) blended GPM of 22% over our forecast horizon, and 3) attributable net income of EGP56mn in FY18. Lecico is currently trading at FY18 P/E of 10.5x and EV/EBITDA of 5.4x.