Today’s Trading Playbook
KEY THEMES
Earlier this morning, we published our Core Coverage Report on Obour Land for Food Industries [OLFI], a leading cheese maker possessing the biggest slice of the white cheese pie in Egypt (42%). OLFI ventured lately into the milk segment to diversify its revenue mix. Currently, OLFI owns a farm that should be fully operational in 2022, further augmenting its milk production. Besides growth, we believe OLFI’s healthy cash collection policy will continue to keep its working capital at sustained levels. Furthermore, OLFI’s dividend policy of an average of 50% payout ratio should serve investors’ well, even at times of volatility, thanks to a healthy balance sheet with a very low debt/equity ratio.
We rate OLFI as Overweight/Medium Risk with a 12M PT of EGP8.6, offering an upside potential in excess of 50%.
Please click here for the full report.
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