Beltone Bank recommends the purchase of "Alexandria Containers" with a fair value of 19.25 pounds per share

Economy and stock exchange

Beltone Investment Bank has recommended the purchase of Alexandria Container and Cargo Handling at a fair value of LE 19.25 per share.

Alexandria Containers and Goods Co. announced its audited financial results for the third quarter of the fiscal year 2018/2019, which showed a net income of LE 387 million, down 33% compared to the third quarter of FY 2017/2018 and 17% Of fiscal year 2018/2019.

He attributed the decrease in Alexandria's profits to the containers; adding 92 million pounds of compensation fees, especially the crane incident in the revenues of the comparison period (third quarter of the financial year 2017/2018), as well as currency exchange losses of 46 million pounds resulting from The rise in the value of the pound in the third quarter of the fiscal year 2018/2019.

Earnings from major operations, excluding compensation fees, exchange rate losses and other non-recurrent and volatile items, declined slightly by 6 percent year-on-year and 7 percent year-on-year, with annual contraction supported by lower interest income and a slight contraction in the operating margin.

Beltone added that Alexandria's container revenues rose by 4% year-on-year to LE 665 million in the third quarter of FY 2018/2019, excluding compensation fees in the third quarter of FY 2017/2018, reflecting the continued improvement in productivity by An increase of 8%, offsetting a decrease in the revenues of each unit equivalent to twenty feet in the Egyptian Pound, a drop of 4% following the rise of the value of the pound against the dollar, as well as the decline in the revenues of each container in US dollars and a decrease of 2% year on year.

On a quarter-on-year basis, revenues declined by about 7%. Beltone attributed the reasons. First, the number of containers handled declined by 5% due to seasonal factors. Second, the decrease in revenues per container due to the rise in the pound despite the slight improvement in the dollar- With a growth rate of 1%. On a nine-month basis, production reached 947,000 TEUs, up 10% YoY.

The total profit of Alexandria Container Handling witnessed a significant decline of 16% year-on-year to record EGP 435 million, but excluding the amount of non-recurring compensation in the comparison period, the total profit increased by 2% year on year.

The gross profit margin (excluding the amount of compensation) shrank 1.6 percentage points year-on-year to 65.5% in the third quarter of FY 2018/2019 due to higher rents and fees. Despite the slight increase in gross profit, profits from major operations A decrease of 6%, following a 56% decrease in interest income on a year-on-year basis to EGP 35 million, after the company distributed an exceptional EGP 1.3 billion to the shareholders. March 2019 compared to 3.9 billion pounds the previous year.

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