Eastern Company’s Board of Directors (BoD) has proposed the distribution of EGP8.0/share for FY2016/17, lower than our forecast of EGP9.0/share but higher than the EGP6.0 paid out in FY2015/16. The proposed divided implies a dividend payout ratio of 45%, only slightly higher than the 41% paid out the prior year and a divided yield of 2.8%. However, typical to form, we expect the DPS to be raised during the company’s AGM, which should be held near the end of September 2017.
Eastern Company: EGP288.93 as of 7 Sep. 2017, Rating: Buy, TP: EGP408.00/share, MCap: USD1,641mn, EAST EY/EAST.CA
Nada S. Amin
Hatem Alaa, CFA