CI Capital maintains Mobinil’s fair value at EGP 121

CI Capital Research (CICR) reaffirmed the fair and target prices of the Egyptian Company for Mobile Services (Mobinil) at EGP 121, maintaining an Overweight rating on the stock.

The telco posted net losses of EGP 108.5 million for Q2-11, hurt by the new tax system. CICR said that, before applying the new system, Mobinil reported net profit after tax (NPAT) of EGP 80.1 million.

The research firm attributed this change in profit to the lower-than-expected decrease in EBITDA margin and the forecast-beating rise in depreciation and debt amortization costs as well as non-operating costs. In general, the mobile operator’s performance was disappointing because of lower margins.