Cairo – Mubasher: MubasherTrade Research has maintained its Buy/Moderate risk rating for Misr Fertilizers Production Company (Mopco) at a price target (PT) of EGP 111.33 per share, according to a recent report.

“Performance came broadly in line with our full year's estimates with a gross profit margin for 2017 first nine-month standing at 64%, versus 65% in our estimates for 2017,” MubasherTrade said.

“With favorable feedstock pricing formula and a rebound in global urea prices, backed by a gradual relaxation of local price capping, we remain positive on MOPCO's operations,” the report continued.

In October 2017, the government raised local prices of urea to EGP 3,200 per tonne from EGP 2,959.

Mopco reported a net loss of EGP 296.73 million in the third quarter of 2017, compared to EGP 503.47 in Q3-16.

Mopco would have recorded a net profit of EGP 75.58 million, along with EGP69.7mn of foreign exchange losses, missing multidimensional real-time economic modelling of EGP 327.4 million on higher tax expense, MubasherTrade highlighted.

Tax expense surged 48% year-on-year to EGP 293.6 million from EGP 105.9 million for MRTE-Modelling, the report noted.

Mopco had turned to profitability during the first nine months of 2017 due to a growth in sales.

Consolidated profits amounted to EGP 241.84 million in the nine-month period ended September 2017, up from EGP 99.29 million the year-ago period, including minority shareholder’s rights.