long Stock Performance & Valuation
Current Price: 5.9 EGP/share (🔼 +10.8% gain so far)
Fair Value: 7.1 EGP/share (🔼 20.3% undervalued)
P/E Ratio: 4.1X (very low, strong value play)
Market Cap: 5.48B EGP
Price Target: 8.1~9.5 EGP (+37% upside potential)
Holding Period: 12 months
Financial Performance (1H 2024)
📈 Revenue Growth: +80% YoY → Strong top-line expansion
📈 Gross Profit Growth: +110% YoY → Higher profitability efficiency
📈 Operating Profit Growth: +123% YoY → Improved operational execution
📈 Net Profit Growth: +115% YoY → Bottom-line strength
📈 Net Profit Margin: 13% (up from 11%) → Profitability improving
📌 EPS Growth: 0.81 EGP vs 0.38 EGP (YoY) → +113% growth in earnings per share
💡 Sector Strength:
Cable product revenue: +79% YoY (65% of total revenue)
Dairy product revenue: +60% YoY (16% of total revenue)
Real estate & contracting revenue: +166% YoY (8% of total revenue)
Investment Outlook & Strategy
✅ Bullish Signals:
✔ P/E ratio of 4.1X → Stock is undervalued relative to earnings
✔ Strong revenue & profit growth → +115% net profit YoY is a major positive
✔ Fair value (7.1 EGP) & TP1=price target (8.1 EGP) → Stock has a potential 37% upside
✔ Higher profitability margins (13% net profit margin)
❌ Bearish Signals & Risks:
⚠ Finance expenses surged (+176%) → Higher debt burden
⚠ Currency translation differences (-91%) → FX risk exposure
⚠ Lower gains on asset sales → One-time earnings boost may not be repeated
