Lucky Cement: Valuation + DRC project attracted interest We received strong investor feedback on Lucky Cement at the Frontier Markets Conference hosted by BofAML recently. Trading at 40% discount to regional peers, expansion in rapidly growing African market makes Luckys investment case extremely attractive. Luckys management expects its Iraq JV to commence operations from Dec-13, which can deliver PRs0.70-1.15/sh earnings contribution to Lucky Cement FY15E EPS based on expect EBITDA of US$15/ton. Lucky is targeting financial close of its DRC JV by Dec-Jan, with target project commencement within 3-years. Lucky expects strong rebound in cement demand in DRC with rise in GDP leading to increase in need for housing infrastructure in the country. We retain our Buy rating for Lucky Cement with a PO of PRs297. Warm Regards, KASB DIRECT-
Posted on: Fri, 29 Nov 2013 10:05:52 +0000
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