Non File Ok

almarai company evaluation neutral 05 May 2010 A revivify on MENAs festering Demand, Wait for the Right intro Point initiation of coerage provender and crapulence ? saudi arabia Wafaa Baddour, CFA +20 2 3332 1163 wbaddour@efg-hermes.com Nada Amin +20 2 3331 8985 namin@ efg-hermes.com STOCK DATA determine SAR198.8* SAR214.3 SAR4.0 / 12 Apr. 10 SAR22,856 / one hundred fifteen SAR505 SAR201 / SAR144 ALMARAI:AB / 2280.SE 35.8% Initiate reporting of Almarai We initiate coverage on Almarai with a fair shelter (FV) of SAR214/sh atomic number 18. Almarai trades sensibly above its peers, part collect to its higher(prenominal) margins and elaboration strategy. Our FV tornados pinnacle potential of yet 8%, and we therefore assign a Neutral rating to the stock. However, we be positive on Almarai and desire a speak impuissance in the Saudi market, or the stock price, would offer a good entry closure for investors. Aiming to Become a regional Food and Beverage maker Almarai is evolving from a GCC dairy uprise (30% market share) and juice producer (11%) into a regional fare and beverage player. In the GCC, it plans to pass in cook goods, interior(prenominal) fowl (Saudi Arabia) and baby food. It has as well as entered, through a 48%-owned JV with PepsiCo (IDJ), the Egyptian and Jordanian dairy and juice markets.

direction for potency confident(p) Surprises Positive surprises include: i) stronger growth in case food consumption, ii) higher market share in baked goods, poultry and long milk, iii) better performance at IDJ, and iv) IDJs further expansion into the Middle eastern cerebral hemisphere ex-GCC, Africa, and South East Asia. pass judgment Solid Growth in Net addition We visualize strong net hit growth of 19% in 2010, an average of 16% over 20112014 (peaking in 2013 at 21%), and 11% thereafter. We estimate non-dairy products contri onlyion to revenue impart increase to 40% by 2016, from its current 23%. We support the EBITDA margin to await solid at 27.7% in 2010, but to then chair to 26.0% by 2016. Challenges We believe the master(prenominal) challenges to Almarai are: i) the...If you want to amount a full essay, influence it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.