CI Capital cut Sinai Cement by 29%, to EGP53/share, leaving 17% upside potential and downgraded its recommendation from Strong Buy to Hold.
CI Capital said that given the political and economic repercussions of the Egyptian uprising, it has negatively revised our estimates for the local cement market indicators (utilisation rates, demand, and prices).
Being one of the existing local cement players, it revised Sinai Cement model by lowering its own KPIs.
Additionally, SCEM’s plant was shut down for 11 working days for the attack of Bedouin activists in Sinai.
What increased the risk of Sinai as a geographical location was the natural gas pipeline in Al-Arish that was bombed twice year-to-date and yet to be repaired and secured.