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10-Feb-2016

Eastern Co. raises FY2015/16 earnings target upwards by 50% to EGP1.5 billion from EGP1 billion, +17% Y-o-Y  

Eastern Company expects to reach net profit (before appropriations) of EGP1.5 billion in FY2015/16 (ending June 2016) after delivering stronger-than-expected results in 1H2015/16 (+38% Y-o-Y). The new earnings target implies Y-o-Y growth of 17% (based on revised FY2014/15 earnings figure of EGP1,273 million) and is 50% higher than the previously-announced target of EGP1.0 billion. The company’s new target beats our forecast by c26%. Typically, the company’s guidance has been conservative, beating targets over the past couple of years. (Company disclosure, Hatem Alaa, Nada Amin)   Eastern Company: EGP150.20 as of 09 February 2016, Rating: Buy, FV: EGP295.00 per share, MCap: USD959 million, EAST EY / EAST.CA

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