GB Capital for Financial Investments has announced appointing Arqaam Capital as the company’s financial advisor to study the available strategic options to maximise the return on the company’s investments and contributions to subsidiary companies, especially MNT Investment.
The company revealed the latest developments of the project to establish a motorcycle factory, where detailed studies of production capacity and technical specifications of the equipment were completed. The estimated production capacity of the factory was modified to become 360,000 instead of 240,000 units. The company added that the location of the project was determined and land-use contracts were signed to start construction work.
Regarding the tire factory project, the company said that negotiations are underway with more than one technology partner for the project, and the necessary financial studies have been completed, whereby the operational and financial implications are evaluated to raise the expected production capacity of the factory to about 6 million tires annually for passenger cars and light transport vehicles as well as 1 million tires for trucks and buses.
Meanwhile, the company revealed its financial indicators, showing an increase of 65.7% in net profit to EGP 1.84bn during the past year, compared to EGP 1.11bn in 2020.
The company’s revenues also grew during the past year to reach EGP 31.4bn, compared to EGP 23.3bn in 2020.
Nader Ghabbour, Managing Director of GB Auto, explained that the company’s results for the year 2021 reflected the strong contribution of the automotive sector. The company benefited from the increasing demand for its products by adjusting the product range and improving pricing policies, which resulted in maintaining the sector’s profit margins amid the inflationary pressures witnessed in the year.
Ghabbour pointed out that the passenger car sector has succeeded in overcoming the semi-conductors shortage crisis, and achieved strong results while benefiting from the new Changan and Haval brands that were recently launched within the sector’s product line-up.
The two-wheeler and three-wheeler segment witnessed continued growth in sales volumes and, consequently, revenue, in light of the strong demand for the segment’s product assortment.
He added that the commercial trucks and construction equipment sector witnessed growth in bus sales in light of the start of the recovery of the tourism sector after easing the precautionary restrictions related to the COVID-19 crisis, while truck sales witnessed a remarkable growth thanks to the company’s participation in the implementation of a group of national infrastructure projects.