Weighting of pharmaceuticals to up on the new health law: Pharos

Tuesday 10 July 2018 09:49 PM

Pharos Holding for Financial Investments
Pharos Holding for Financial Investments

By  Mona Abd El-Bary
Pharos Investment Bank advised weighting of two shares of small-capital pharmaceuticals to be raised on the backdrop of predictions suggesting the two companies will record higher and more sustainable profits.
While recommending the two stocks to be raised, Pharos estimated the fare value of Alexandria Company for Pharmaceuticals and Chemical Industries at EGP198.7, and stock of El-Qehera Company for Pharmaceuticals and Chemical Industries at EGP43.7.
Stocks of the two companies had the best performance among small-cap pharmaceuticals with the former expected to  record 24% growth on average and 6.6% dividend distribution, while the latter is expected to post 34% profit margin.
ACPCI and QCPCI are expected to post revenues worth EGP906mln and EGP391mln respectively, according to pharos report, noting that shares of the two companies are cheap and positioned  to rally later on.
Pharos predicted the two companies to rally on the backdrop of positive  impact that  the new health insurance law may have on sales.
" Sales of pharmaceuticals are expected to edge up gradually because the government is implementing the new health system in more than one Egyptian province."
ACPCI ended today's trades higher at EGP155, whereas  QCPCI rose to EGP46.66 by 2.8%.