Egypt News

CI Capital said in a note that Eastern had maintained a 4 percent 4-year compound annual growth rate on revenues and 16 percent on earnings, and traded at a forward price-to-earnings ratio of 7.3 times.

"The company's operation proved its resilience to the prevailing economic slowdown through its sustained revenue growth," CI Capital said, adding that it had raised its long-term fair value on the share to 155 Egyptian pounds ($28.32) from 136 pounds.

It added that Eastern's EBITDA margin improved in fiscal year 2008/9 on the back of a move toward making higher-margin foreign brands for multinationals such as British American Tobacco and Philip Morris
 The note added Eastern could see further margin improvements once it completes a move to a new 5.5 billion pound complex in 2012.

Eastern reported unaudited net profit of 151 million pounds in the three months to end-September compared with 148 million in the same period a year earlier. Shares were 6.2 percent down at 118 pounds by 1208 GMT.

CI Capital said it had raised its target price on Oriental Weavers, the world's largest machine-woven carpet maker, to 40.5 pounds per share from 37.5 pounds, but cut its long-term fair value estimate to 46.3 pounds from 48.3 pounds.

It said Oriental Weavers produced solid performance in the first half of 2009 with stable revenue and earnings growth, adding that it traded at a low price-to-earnings ratio of 7.3 times, based on 2009 estimated earnings.

Oriental Weavers diverted unutilised export capacity to meet growing local demand, and would complete a new industrial complex by 2017, CI Capital said.

Oriental Weavers posted a 5 percent rise in net income for the first half of 2009 to 163 million pounds, compared with 154 million pounds in the first half of 2008. Shares were 2.3 percent down at 31.31 pounds by 1208 GMT.

EGYPT NEWS

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