Cairo – Mubasher: Pharos Research has reiterated their fair value (FV) for Al Ezz Dekheila Steel – Alexandria at EGP 1000, implying an ‘Overweight’ recommendation.

The Egyptian iron and steel firm is expected to report attributable net income of EGP 2.1 billion in 2018, Pharos said in a research note on Monday.

The company’s gross processing margins (GPM) are likely to hover around 15.7%, the research firm added.

Al Ezz Dekheila Steel – Alexandria reported it has turned profitable in the first quarter of 2018 due to higher sales.

Consolidated profits surged to EGP 431.7 million during the three-month period ended last March, versus EGP 68.8 million in Q1-17, the company said in a filing to the Egyptian Exchange (EGX).

Sales grew to EGP 1.3 billion in Q1-18 from EGP 414.5 million in the prior-year period.