Cairo – Mubasher: Pharos Research has maintained their 'overweight' recommendation for Egyptian Transport and Commercial Services Co's (Egytrans) stock at a fair value (FV) of EGP 20.
Egytrans’ revenues are not expected to decline “dramatically” during the current fiscal year, in line with the Central Bank of Egypt’s (CBE) interest rate cuts, as most of the company's cash is denominated in foreign currency, Pharos said in a recent report.
The Egypt-based transport services company has succeeded in adding new clients in its land transportation segment during 2017, including Raya, Misr Fertilizers Production Co (MOPCO), Sphinx Glass, Al-Wataneya Poultry, the report added.
Egytrans’ management expects a drop in the projects business segment for 2018, but it seeks expansion locations for its Egyptian Depot Service (EDS) activities to raise the number of cleaned and repaired containers, Pharos continued.
The report indicates that Egytrans could see up to EGP 25 million in revenues from Nasr Chemicals (NCIC) during 2018, as part of transporting NCIC’s production line.
The Egyptian transport-focused company is planning to bid for project awards within El-Hamraween power plant, the report noted.
“Initiation of new major projects including El-Hamraween and El-Dabaa is considered a major catalyst for Egytrans, though the timing is hard to expect, as it depends on the availability of funds by the government and the construction timeline, enabling Egytrans to transport equipment to the sites,” Pharos highlighted.
