Misr Chemical Industries [MICH]
Annually Wild, Quarterly Tamed Overweight and 12M PT maintained
Monday, 8 February 2021 / 9:00 AM CLT
Egypt / Materials / Q2 2020/21 Results
Earnings momentum continues: Misr Chemical Industries’ [MICH] earnings performance continued to impress, with H1 2020/21 registering a bottom line of EGP82mn vs. only EGP14mn a year earlier. Sound earnings performance is the product of substantial margin improvement; GPM came in at 48.9% vs. 28.4% a year earlier. Q2 2020/21 results, while still impressive from a y/y perspective, it points to a mild sequential weakening. MICH achieved a top line of EGP122mn in Q2 2020/21 (+62% y/y, -4% q/q), whereas its bottom line came in at EGP40mn (+645% y/y, -4% q/q). This q/q mild decline in performance indicators is attributed to the price correction in MICH’s selling prices during the quarter.
Mohamed Saad
Equity Analyst
T +202 3300 5719