| Dana Gas - Bond takes gas out of Dana (Buy) |
| November 17,2011 |
| Dana's current receivables stand at US$191m (Dh701m) in Kurdistan and US$207m (Dh760m) in Egypt. In 9M11, Dana Gas received US$80m (Dh294m) in Kurdistan and US$48m (Dh176m) in Egypt. By comparison, in 9M10, we estimate Dana Gas was paid US$11m (Dh42m) in Kurdistan and US$148m (Dh543m) in Egypt.
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| Drake & Scull - Continue to remain constructive (Buy) |
| November 17,2011 |
| DSI reported total revenue of Dh847m (up 15% qoq and 96% yoy), beating our estimate of Dh701m by 21% and consensus estimate of Dh668m by 27%. The revenue beat was mainly due to better-than-expected execution. The company's annualised backlog to revenue conversion rate of 45% was 700bp ahead of our estimate. Gross margin moved up 30bp qoq to 14.6% after falling from 18.6% in 2010 to 14.3% in 2Q11 and was 30bp ahead of our estimate. The EBIT margin of 6.5% was also better than our estimate of 6.1%. Overall net profit of Dh58m (up 12% qoq and 89% yoy) beat both our forecast and consensus estimate of Dh49m by 18%.
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| Orascom Construction Ind - 3Q11 results due 21 November (Buy) |
| November 16,2011 |
| OCI will report 3Q11 results on Monday, 21 November. We expect another strong quarter, with EBITDA of US$364m (+37% yoy) and net income of S$185m (+25% yoy) 2% and 1% above company compiled consensus, respectively.
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NSCSA - Fair Seas navigator (Hold) |
| March 11,2011 |
| A critical oversupply in VLCC tonnage accompanied by weak demand in OECD economies has resulted in trough conditions for VLCC shipping rates, which are cyclical in nature. Weak rates accompanied by high bunker fuels costs lead us initiate coverage with a Hold rating and a SR16.33 target price.
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Real Estate - Navigating the downturn; (Buy) Emaar & DSI, (Hold) Aldar, Sorouh & Arabtec (Hold) |
| March 10,2011 |
| The UAE property sector continues to undergo a price correction that began in late 2008. We believe while there is more downside risk to property prices, much of this is priced in to the stocks. Emaar and DSI offer up to 16% upside potential from current levels, while Aldar, Sorouh and Arabtec offer neutral risk-reward.
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Egypt – the challenge |
| February 21,2011 |
| We expect the market to be volatile once open – it is by no means cheap and there are still many challenges ahead. We believe more clarity on Egypt's economic direction beyond 2011 could restore investor confidence in a longer-term positive outlook.
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Rasmala-RBS Research: Nakilat – Where's the growth? |
| February 16,2011 |
| Nakilat, the world's largest LNG ship owner, offers investors exposure to Qatar's gas reserves. Given the structure of the time charters, we view the current market price as fair and initiate coverage with a Hold recommendation.
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Rasmala-RBS Research: MENA Strategy: Egypt – implications of the turmoil |
| February 01, 2011 |
| We expect the current social unrest to already have had negative implications for the Egyptian economy. A new government, irrespective of who the president is, will have to focus on getting the economy back on track. Expect stock market volatility until the economic outlook is clearer.
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Rasmala-RBS Research: Initiation of coverage Qatari banks, cheerful not cheap |
| January 28, 2011 |
| With Qatar's strong economy and a fiscally expansionary budget, the backdrop could hardly be better, in our view. Consequently, even though valuations are looking high for the region, we believe these can just about be justified by the high-teens growth rate and high-teens rate of return.
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Rasmala-RBS Research: Initiation of coverage Dana Gas – Energy with a twist (Buy) |
| January 20, 2011 |
| Dana Gas is the only listed oil & gas company in the MENA region with exploration concessions in Egypt and Iraq. It offers energy asset exposure to a region with some of the world's largest energy reserves and where natural gas demand exceeds supply. We initiate coverage with a Buy recommendation.
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Rasmala-RBS Research: Initiation of coverage Jordan Telecom – Maturity reached (Sell) |
| January 04, 2011 |
| We believe revenue growth at Jordan Telecom Group (JTG) has peaked, given the company operates in a country with a population of only 6.4m and a total of four operators in a saturated telecom market. We initiate coverage on JTG with a Sell recommendation and a target price of JOD4.43.
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