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English news

17-Jul-2018

Alexandria Containers BoD agrees on 10:1 stock split

Alexandria Containers Board of Directors (BoD) have just approved a 10:1 stock split at its meeting held yesterday. The split, which will increase the number of shared to c1,490mn  from c149mn, will be pending the necessary approvals and finalizing procedures. We believe that the stock split will likely have a positive implication on liquidity as it would bring it more retail focused investors to the table. 

Overall, stock liquidity has been a major obstacle that ALCN shares face that has been limiting the movement of the stock. Currently, the stock trades at an undemanding 2017/18 P/E multiple of c9x (9.9x if we exclude the most recent capital gain of EGP183mn), while offering c10% CAGR thereafter. Accordingly, we have a Buy rating on the stock.


Alex. Containers and Goods: EGP155.00 as of 16 Jul. 2018, Rating: Buy, TP: EGP225.00/share, MCap: USD1,295mn, ALCN EY/ALCN.CA


Ahmed Hazem Maher
Alaa Saleh

 

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