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EFG-Hermes maintains Sidi Kerir Buy rating

February 17, 2014



Arab Finance: EFG-Hermes maintained, in a recent study, Sidi Kerir Petrochemicals - (SKPC) "buy" rating . Hermes stated that,  Sidpec reported its 4Q2013 results , showing another solid quarter on the operational level, but disappointing our expectation on the bottom-line. Net income declined 3% Q-o-Q to EGP314 million, 9% below our expectation. It is not yet clear whether the weaker bottom-line Q-o-Q and the miss were driven by higher-than-expected S,G&A expenses, other expenses or lower other income as full financials are not yet available. On the operational level, gross profit saw a marginal gain of 3% Q-o-Q, in line with our expectation. Hermes added that , we maintain our Buy rating on Sidpec, as it continues to offer an attractive dividend yield of 12% and lower risk relative to other industrial  plays in Egypt, in our view. 


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Source: Arab Finance (Egypt)


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