Misr Chemical Industries [MICH]: A Healthy Kick-off to a Promising Year
Upgrade to Overweight on recent price drop
Misr Chemical Industries [MICH]
Egypt / Materials / Q1 2021/22 Results
12M PT: EGP13.9 (+51%)
set on 14 Nov 2021
Investment Rating: Overweight | Risk Rating: High
Astonishing sequential earnings recovery
Misr Chemical Industries’ [MICH] earnings performance in Q1 2021/22 was a remarkable job, as MICH achieved a bottom line of EGP50mn vs. EGP42mn a year earlier (+20% y/y, +96% q/q). The main drivers behind the strong earnings performance are a solid top line of EGP139mn (+9% y/y, +11% q/q), coupled with robust margins; GPM came in at 53% vs. 44% in Q4 2020/21. Revenues came broadly in line with our estimates of EGP140mn (-1.0% vs. PRe), while the bottom line came slightly ahead of our estimates of EGP47mn (+6% vs. PRe).
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Mohamed Saad
Senior Equity Analyst
T +202 3300 5719