Eastern Co. [EAST.CA] is looking to pay EGP57.5bn in taxes to the government in FY18-19 (+16% Y-o-Y) compared to EGP49.7bn in the current FY budget. The company is looking to increase its profits to EGP3.25bn during the year from EGP2.98bn in 2016-17. We note that, typically, Eastern has set fairly conservative earnings targets – for FY16-17, it had initially targeted EGP1.3bn.
Nada Amin, Hatem Alaa
Eastern Company: EGP489.75 as of 15 Feb. 2018, Rating: Buy, TP: EGP580.00/share, MCap: USD2,772mn, EAST EY/EAST.CA