New Risk • May 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risks Revenue is less than US$5m (ج.م133m revenue, or US$2.7m). Market cap is less than US$100m (ج.م831.9m market cap, or US$16.7m). Duyuru • Mar 20
Medical Packaging Company, Annual General Meeting, Apr 12, 2025 Medical Packaging Company, Annual General Meeting, Apr 12, 2025, at 13:00 Egypt Standard Time. Location: cairo Egypt Reported Earnings • Aug 18
Second quarter 2024 earnings released: EPS: ج.م0.021 (vs ج.م0.007 in 2Q 2023) Second quarter 2024 results: EPS: ج.م0.021 (up from ج.م0.007 in 2Q 2023). Revenue: ج.م29.0m (up 72% from 2Q 2023). Net income: ج.م13.8m (up 224% from 2Q 2023). Profit margin: 48% (up from 25% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 143% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to ج.م1.30, the stock trades at a trailing P/E ratio of 64.9x. Average trailing P/E is 6x in the Packaging industry in Africa. Total returns to shareholders of 169% over the past three years. New Risk • Mar 31
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Egyptian stocks, typically moving 13% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risks Profit margins are more than 30% lower than last year (2.3% net profit margin). Revenue is less than US$5m (ج.م91m revenue, or US$1.9m). Market cap is less than US$100m (ج.م1.47b market cap, or US$31.1m). Reported Earnings • Mar 07
Full year 2023 earnings released: EPS: ج.م0.032 (vs ج.م0.017 in FY 2022) Full year 2023 results: EPS: ج.م0.032. Revenue: ج.م91.0m (up 54% from FY 2022). Net income: ج.م2.10m (down 63% from FY 2022). Profit margin: 2.3% (down from 9.7% in FY 2022). The decrease in margin was driven by higher expenses. Reported Earnings • Nov 18
Third quarter 2022 earnings released: EPS: ج.م7.00 (vs ج.م0.004 in 3Q 2021) Third quarter 2022 results: EPS: ج.م7.00 (up from ج.م0.004 in 3Q 2021). Revenue: ج.م15.5m (up 25% from 3Q 2021). Net income: ج.م2.37m (up 54% from 3Q 2021). Profit margin: 15% (up from 12% in 3Q 2021). The increase in margin was driven by higher revenue. New Risk • Nov 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Egyptian stocks, typically moving 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported June 2022 fiscal period end). Shareholders have been substantially diluted in the past year (90% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Revenue is less than US$5m (ج.م53m revenue, or US$1.7m). Market cap is less than US$100m (ج.م662.9m market cap, or US$21.5m). Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improves as stock rises 41% After last week's 41% share price gain to ج.م1.01, the stock trades at a trailing P/E ratio of 75.3x. Average trailing P/E is 8x in the Packaging industry in Africa. Total returns to shareholders of 207% over the past three years. Buying Opportunity • Oct 08
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 24%. The fair value is estimated to be ج.م0.80, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 32% over the last year. Earnings per share has grown by 47%. New Risk • Aug 17
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended June 2022. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported June 2022 fiscal period end). Share price has been highly volatile over the past 3 months (16% average weekly change). Shareholders have been substantially diluted in the past year (90% increase in shares outstanding). Minor Risks Revenue is less than US$5m (ج.م53m revenue, or US$1.7m). Market cap is less than US$100m (ج.م472.3m market cap, or US$15.3m). Buying Opportunity • Feb 24
Now 25% undervalued after recent price drop Over the last 90 days, the stock is down 23%. The fair value is estimated to be ج.م0.37, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% per annum over the last 3 years. The company has become profitable over the last 3 years. Is New 90 Day High Low • Mar 16
New 90-day high: ج.م1.06 The company is up 121% from a price of ج.م0.48 on 16 December 2020. Outperformed the Egyptian market which is up 4.0% over the last 90 days. Exceeded the Packaging industry, which is up 31% over the same period. Reported Earnings • Mar 07
Full year 2020 earnings released: EPS ج.م0.01 (vs ج.م0.017 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: ج.م36.7m (up 23% from FY 2019). Net income: ج.م4.41m (down 21% from FY 2019). Profit margin: 12% (down from 19% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 103% per year but the company’s share price has only increased by 70% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 01
New 90-day high: ج.م0.81 The company is up 134% from its price of ج.م0.35 on 03 November 2020. The Egyptian market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Packaging industry, which is up 36% over the same period. Is New 90 Day High Low • Jan 13
New 90-day high: ج.م0.64 The company is up 58% from its price of ج.م0.41 on 15 October 2020. The Egyptian market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Packaging industry, which is up 25% over the same period. Is New 90 Day High Low • Dec 17
New 90-day high: ج.م0.53 The company is up 14% from its price of ج.م0.46 on 17 September 2020. The Egyptian market is up 4.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Packaging industry, which is up 26% over the same period. Is New 90 Day High Low • Nov 02
New 90-day low: ج.م0.34 The company is down 9.0% from its price of ج.م0.38 on 04 August 2020. The Egyptian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Packaging industry, which is up 4.0% over the same period. Duyuru • Sep 17
An unknown buyer acquired 11.4% stake in Medical Packaging Company (CASE:MEPA) from Wael Bebawy for EGP 15.6 million. An unknown buyer acquired 11.4% stake in Medical Packaging Company (CASE:MEPA) from Wael Bebawy for EGP 15.6 million on September 16, 2020. Wael Bebawy now holds 5.07% stake in Medical Packaging Company.
An unknown buyer completed the acquisition of 11.4% stake in Medical Packaging Company (CASE:MEPA) from Wael Bebawy on September 16, 2020.