Sidi Kerir Petrochemicals

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New Gas Formula Takes Margins to Decent Levels; FX Rate A Blessing. We forecast SKPC to post net profits of EGP1,731 million, marking a 40% YoY growth in FY23. SKPC is currently trading at FY23e P/E of 6.6x and EV/EBITDA of 4.9x.

SKPC reported its results for 3Q21 where sales came in at EGP 1,098 million (-19% QoQ, +47% YoY). 3Q21 net profit came in at EGP75 million, implying an NPM of 6.8%, versus 2Q21’s NP of EGP131 million and 3Q20’s net loss of EGP47 million. Our TP for S...

SKPC reported 2Q21 sales of EGP 1,360 million (+4% QoQ, +89% YoY). Gross profit for the quarter came in at EGP 285 million, implying a GPM of 21.0%, versus 1Q21’s GP of EGP 282 million with a GPM of 21.5% and 2Q20’s gross loss of EGP 33 million. SKPC...

We update our valuation for SKPC and revise our target price to EGP13.40/share from EGP9.55/share amidst a booming PE market with unusual tight supply from usual hubs. The ongoing commodity boom could not have come a better time for SKPC. As the comp...

Prices of raw materials in the food and beverages sector continued to normalize in 2Q21, except for prices of SMP and WMP. Most companies have an inventory of raw materials that covers somewhere around 2-3 months. Polypropylene prices started to norm...

SKPC released detailed financial statements for 1Q21, showing a sales figure of EGP1,310 million (+38%YoY, +25%QoQ). Despite a 15% drop in core volumes sold (Ethylene, Polyethylene) from 64,346 tons in 4Q20 to 54,548 tons, and a drop in PE utilizatio...