EGP declines vs. USD at Thursday's close    Euro area inflation rises to 2.0% in October '24 – flash estimates    IF YOU LOVE SOMEONE WHO SMOKES, GIVE THEM THE FACTS    Asian stocks slide as chip sector weakens    Egypt's Minister of Environment highlights biodiversity issues at COP16    Egypt's Agriculture Minister meets Syrian, Bahraini counterparts to boost cooperation in Amman    Al-Qassam Brigades targets Israeli vehicles in eastern Gaza    ACUD, DP World, and GAFI sign MoU to develop free zone in New Capital    Egyptian government encourages increased mutual investment with Bahrain: Finance Minister    A Tale of Two Cities: Alexandria hosts 2nd edition of exhibition celebrating Greek, Egyptian cultural ties    Egypt, Djibouti leaders discuss strengthening ties, regional issues    Egypt's FM affirms commitment to Sahel security, offers support to Niger    Egyptian banking sector support underprivileged communities in Alexandria – CBE    Afghanistan signs $163m deal for cement plant    US tightens tech investment rules for China    Biden unveils $3b investment to strengthen US port infrastructure    Military Production, Environment Ministers inaugurate banana fiber recycling plant    Luxor Museum to host exhibition on 19th century antiquities inspection tours    Nourhan Kamal Wins 2024 Helmi Sharawy Award for African Studies    Egypt observes Intl. E-waste Day, highlights recycling efforts    Egypt's military capabilities sufficient to defend country: Al-Sisi    Al-Sisi emphasises water security is Egypt's top priority amid Nile River concerns    Cairo Opera House hosts grand opening of Arab Music Festival, Conference    Grand Egyptian Museum ready for partial trial run on October 16: PM    Colombia unveils $40b investment plan for climate transition    Kabaddi: Ancient Indian sport gaining popularity in Egypt    Ecuador's drought forces further power cuts    Al-Sisi orders sports system overhaul after Paris Olympics    Basketball Africa League Future Pros returns for 2nd season    Egypt joins Africa's FEDA    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Paris Olympics opening draws record viewers    Who leads the economic portfolios in Egypt's new Cabinet?    Financial literacy becomes extremely important – EGX official    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    Egypt records 36 new deaths from Covid-19, highest since mid June    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Pachin expecting real estate bids to develop on 60,000 sqm of land
Published in Daily News Egypt on 16 - 02 - 2020

Sources at Paints and Chemical Industries, also known as Pachin, told Daily News Egypt exclusively that management could soon announce plans to develop on a 60,000 sqm plot of land pertaining to the old factory in Hadayek El Qobba. Accordingly, the company is looking to invite bids from real estate companies to develop the plot of land which has already been converted and rezoned for real estate and commercial purposes. The original function of the land was purely industrial. The company will start looking over bids from real estate companies sometime in the middle of this year.
Sources said that Pachin's growing market share, which currently controls 70-75% of the medium category market, plans to expand on its 10% share of the premium category market.
Naeem Research values Pachin with a Target Price (TP) of EGP25.7 per share and recommends to buy. The company's financial performance is expected to improve between fiscal year (FY) 2021 and 2024, as increased demand is likely to raise utilisation rates and improve margins. In addition, oil price stability will be positive for Pachin as roughly 80% of costs of goods sold are raw materials linked to global oil prices.
Naeem said that Libya's stability plans will be a positive trigger for Pachin, as it already owns a factory in Libya with a capacity of 2,500 terapascals (tpa).
Naeem indicated that Pachin owns a 60,000 sqm plot of land, which was recently rezoned and is expected to result in significant monetisation through the development model. About 30% of the fair value (or EGP7.5 per share) on Pachin is derived from undeveloped land owned by the company.
The company produces various types of architectural and decorative coatings, industrial paints, printing inks, and alkyd resins with production capacity of 120,000 tpa for paints and 3,000 tpa for ink. Pachin sells most of its output locally in Egypt. Moreover, the firm has strategic alliances with some global leaders within the paint industry such as AkzoNobel and Nova Colour, under which Pachin manufactures and sells various products on behalf of Akzo Nobel under the trademark Dulux, while other Akzo Nobel products are being manufactured under the trademark Pachin. The company owns three coating manufacturing plants: El Obour Paints & Chemical Industries in Qalubya, and in Alexandria, as well as Pachin Libya. The government owns 44.6% of the company through Chemical Industries Holding Co.


Clic here to read the story from its source.