Mubasher TV
Contact Us Advertising   العربية

Pharos maintains Eastern Co’s FV at EGP 390/shr; recommends Equalweight

Pharos maintains Eastern Co’s FV at EGP 390/shr; recommends Equalweight
Eastern Co's gross profit margin beats Pharos estimates
Eastern Co
EAST
-0.37% 27.00 -0.10

Cairo - Mubasher: Pharos Research has maintained their target fair value (FV) for Eastern Co at EGP 390 per share, with an Equalweight recommendation, according to a recent report.

Eastern Co’s gross profit margin rose 1% quarter-on-quarter and 10% year-on-year to reach 39% in the first quarter of fiscal year 2017/2018, beating Pharos’ estimates of 25%.

The tobacco company reported an 18% quarter-on-quarter and 66% year-on-year surge in revenues of Q1 of FY17/18 to EGP 3.2 billion.

Cost of goods sold (COGS) stood at EGP 1.9 billion in Q1 of FY17/18, with an increase of 17% quarter-on-quarter and 44% year-on-year.

Net profit after tax amounted to EGP 1.04 billion from EGP 435 million in Q4 of FY16/17.

“Results show that the company is still benefitting from low-cost dollar inventory,” Pharos added.

Despite Eastern Co has not revealed full details, Pharos claims that the company’s bottom-line growth was driven by a “one-off reversal of provisions”.