El-Sewedy Electric [SWDY]
Egypt / Industrials / Q1 2021 Results
12M PT EGP12.7 (+55%)
as of 28 December 2020
Investment Rating: Overweight | Risk Rating: Medium
Strong recovery: Elsewedy Electric’s [SWDY] Q1 2021 consolidated net income after minorities jumped to EGP700mn (+75% y/y) on higher revenues of EGP12.3bn (+14% y/y). All revenue segments strengthened in Q1 2021 on a yearly basis, except for turnkey. Revenues from turnkey declined to EGP4.5bn (-7.9% y/y). SWDY managed to increase its backlog slightly to EGP49.8bn in Q1 2021 from EGP49bn in 2020. Meanwhile, its gross profit surged to EGP1.87bn in Q1 2021 (+56% y/y). Thus, gross profit margin improved to 15.2% from 11.1%, thanks to higher volumes and prices in the wire & cable segment and higher prices of meters and transformers.
Dina Abdelbadie
Equity Analyst
T +202 3300 5716