Alexandria Containers’ BoD recommends EGP1.45bn cash dividend, more likely to come in 2H17-18; reiterate Buy
The Board of Directors of Alexandria Containers proposed a cash dividend distribution of EGP700mn and another distribution of EGP750mn from retained earnings. This would bring the total cash dividend to EGP1.45bn, in line with our previous discussions with management. The proposed DPS of cEGP9.8/share implies a yield of c6%. We also estimate the company has the ability to pay out another EGP10/share (c6% yield) related to 2H17-18 results, especially considering the immense cash flow generation power the company enjoys. This could bring the total yield for this year to 12%, should our estimates for another round of dividends materialise. The proposed dividends will still be subject to the AGM set for 23 May.
Alex. Containers and Goods: EGP160.02 as of 17 May 2018, Rating: Buy, TP: EGP220.00/share, MCap: USD1,322mn, ALCN EY/ALCN.CA
Ahmed Hazem Maher
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