EFG-Hermes issued a report on Lecico Egypt, maintaining the stock’s fair value at LE 17.3; 22 percent higher than its market price of LE 14.2. The investment bank also reaffirmed its ,,Buy” recommendation on the stock.
The company’s profit went down 15 percent annually year over year to LE 25.7 million. This retreat was ascribed to the 6 percent annual drop in revenue to LE 255.7 million, as returns from sanitary ware fell 12 percent Y-o-Y on the decline in sterling and euro. In addition, the export volume plunged after fire had engulfed the firm’s export warehouse last June.
Moreover, gross profit fell 9 percent Y-o-Y to LE 110.5 million.
The report issuer forecasted Lecico’s exports to improve in H1, despite the challenges of boosting capacity and offering new products.
Demand for the company’s products would likely grow, especially after accessing new European markets, the financial institution concluded.