Corporate news
EFG – Hermes [HRHO] : Multiple growth drivers, one undervalued stock
EFG Holding’s Investment banking division continues to demonstrate strong business momentum through securing high – profile advisory mandates. The Company was selected as the offering manager for the potential IPO of Misr Life Insurance. In addition, Hermes was appointed as the sole financial advisor to both Holding Company for Metallurgical Industries and Egypt Aluminum Company in their partnership with Trafigura to establish a new company for the development, ownership and operation of a new primary aluminum smelter at the Nagaa Hamadi Industrial Complex. Hermes will provide advisory services for arranging the project’s financing through both capital increase and debt financing. Additionally, Its subsidiary company Value, continues to expand its growth platform through entering new business segments and regional markets , the company recently obtained approval from the Financial Regulatory Authority to establish its SME financing business creating a new potential revenue stream for the company. Moreover, Valu received final approval from the Central Bank of Jordon to launch its services in the Jordanian market, marking another step in its regional expansion strategy. From a valuation perspective, the stock is currently trading at price to book value multiple 1.20x compare to the sector median 1.42x , this discount implies a target price of EGP 35 per share.
Walaa Mosalam – Head of Research
WMosalam@egy.primegroup.org