Cairo – Mubasher: Prime Holding – Investment Research cut its fair value for the stocks of Juhayna Food Industries to EGP 5 per share from EGP 6.98 with buy recommendation.
The research unit said it cut the stock fair value on recent risks related to FX losses as well as the amendments run by the company’s management in respect to its pricing plans.
Earlier, Juhayna said it was able of bringing enough supplies of its needs of exported raw materials that will cover the production needs until July 2017.The company was seeking to hedge against the risks of FX fluctuations, said Prime.
The dairy producer preferred to increase the selling prices gradually, noted the research unit.
Juhayna raised the prices by 17% and will pass the remaining increase of 13%, to the customers, gradually during the upcoming few months, said Prime.
Earlier Juhayna pointed out during a press conference that its selling cost increased by 30% in 2015, but it preferred not to fully pass such remarkable cost increase to customers amid its efforts to keep its market share.
