Cairo – Mubasher: Pharos Research has maintained its fair value (FV) of Oriental Weavers Carpet at EGP 19.80 per share, with an “Equalweight” recommendation.

Higher export revenues are expected to boost Oriental Weavers’ margins in the fourth quarter of 2017, Pharos highlighted in a recent report.

Oriental Weavers posted a net profit of EGP 123.7 million in Q3-17, versus EGP 143.7 million in the prior-year period.

Meanwhile, sales increased to EGP 2.6 billion in Q3-17 from EGP 1.5 billion in Q3-16, while the cost of sales rose to EGP 2.3 billion from EGP 1.2 billion.

In the first nine months of 2017, net profit stood at EGP 598.7 million from EGP 415.8 million in the year-ago period.

Average polypropylene prices went up by 14% in 2017, the research firm added, pointing out that Oriental Weavers will carry out price adjustments for both export and local markets if prices maintained rising.

“However, Oriental Weavers might refrain from increasing prices in the local market in case of an appreciation in the pound,” Pharos noted.

By 12:34 pm Cairo time, Oriental Weavers’ stock fell 4.12% to EGP 15.84.