Today’s Trading Playbook
KEY THEMES
Another round of earnings-related news that belong to small- and mid-cap names. We begin with Alexandria Container & Cargo Handling’s [ALCN] KPIs for 4M 2021/22, which showed a 22% y/y increase in net income to EGP448mn, backed by an 11% y/y in the company's gross profit to EGP444mn. We note that ALCN revenues were flat y/y, registering EGP718mn, despite an 11% slippage in total volumes during 4M 2020/21, which hints to a notable increase in ACLN’s blended average prices during the quarter. We believe ACLN is on the road to deliver a double-digit growth this year in net earnings. On an annualized basis, ALCN is currently traded at 2021/22e P/E of 8x, which is considered a bit slim when compared to Canal Shipping Agencies [CSAG], which is currently traded at 2020/21 P/E of 11x.
Elsewhere, PACHIN's [PACH] figures for 2020/21 showed a significant jump in net income post minorities to EGP53mn, up from EGP5mn a year before, backed by a 42% y/y in the company's gross profit to EGP156mn. Meanwhile, revenues increased by 8% y/y to EGP849mn in 2020/21. We note that PACH has witnessed an 8.6% improvement in total volumes to 38,653 tons, where average selling prices came flat y/y. PACH’s current net cash position is EGP155mn (i.e. 36% of current market cap). In view of 2020/21 net earnings and a net cash position, PACH is currently traded at a cash adjusted P/E of only 6x.
Now, on to the top news and analysis for the day.