Elsewedy Electric announced its earnings for the second quarter (Q2) of the year, reporting a 68% year-on-year growth in profits on the back of higher revenues, according to a bourse filling on Wednesday. The electric equipment firm posted EGP 1.5 billion ($80 million) in profits in Q2 2017, registering an increase from EGP 893.04 million ($50.3 million) in the corresponding period of 2016. Revenues almost doubled to EGP 10.8 billion in Q2 2017 from EGP 5.86 billion a year ago. For the first six months of 2017, the electrical components and equipment company said it achieved EGP 3.05 billion in profits compared to EGP 1.66 billion in the first half (H1) of 2016. Standalone profits amounted to EGP 1.9 billion in H1 2017, registering a sharp increase from EGP 345.12 million in the corresponding period of 2016, according to the statement. Elsewedy Electric had previously reported a profit of EGP 1.54 billion in the three months ending March 2017, up from EGP 768.7 million, including minority shareholders' rights, in the period last year. Elsewedy's stocks rose to EGP 89.26, while turnover amounted to EGP 70 million. Meanwhile, the company said its board has recommended a cash dividend to shareholders of EGP 8 per share for the first half of 2017. Distributions will total EGP 1.747 billion, the company's financial statement published on the Egyptian Exchange (EGX) showed. In June, a research note issued by MubasherTrade Research raised its price target (PT) for Elsewedy's stock by 38% to EGP 119.32 per share from EGP 86.77, noting that the company's backlog may be able to secure "impressive operational performance for two years."
