1 / 1

Investment case A leading regional steel producer, with a market share of 40% in local market.

Ezz Steel Rebars. ESRS.CA/ESRS EY |Sell Recommendation | Moderate Risk | LTFV EGP18.4 | Target Price EGP12 | Analyst: Hany Samy. Investment case A leading regional steel producer, with a market share of 40% in local market.

tim
Télécharger la présentation

Investment case A leading regional steel producer, with a market share of 40% in local market.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ezz Steel Rebars ESRS.CA/ESRS EY |Sell Recommendation | Moderate Risk | LTFV EGP18.4 | Target Price EGP12 | Analyst: HanySamy Investment case • A leading regional steel producer, with a market share of 40% in local market. • ESRS plans to expand locally to enhance margins and to meet local market needs. ESRS has long term plans to produce 1.3 mtpa of Direct Reduced Iron by late 2011. • The company is vulnerable to international steel prices, yet local resilient construction activity maintains full utilization of long products capacities. • Backlogs of construction contracts will be completed over the coming 3-4 years, and will absorb local steel production. Downside Risks • A local political and economic situation that has a negative impact on the demand for new real estate units. • Furthermore, the company may witness an increasing number of cancellations • A regional and local political issue that has a negative impact on the tourism industry • Economic crises affected negatively Ezz flat steel sales - mostly directed to export markets • ESRS plans to expand its final product capacity by mid 2012 to produce either long or flat products with a total capacity amounting to 1,200 tons per annum • Shareholder Structure • Ezz Group Holding 64.6% • Free Float 35.09% • Banks, Insurance Companies, & Others 0.31% • 52-Week Performance & Share Data (*EGX suspended 27thJan – 23rd Mar 2011) Key Performance Indicators Company Profile Ezz Steel is a joint-stock company established in April 1994 to manufacture steel rebars. ESRS' facilities in Sadat and 10th of Ramadan have a combined production capacity of 1.4mn tons per annum. Furthermore, ESRS owns 63.1% directly and indirectly of Al-Ezz Flat Steel (EFS), with a capacity is 1.3mn tons of flat steel per annum, most of which is directed to export markets. ESRS also owns a 55% stake in Al-Ezz Dekheila for Steel- Alexandria (EZDK), which is the largest integrated steel plant in Egypt, with an annual production capacity of 1.78mn tons of long products and 1mn tons of flat products.

More Related