The investment bank's valuation reflects the significant value of TMG's major projects, including the massive SouthMED development on Egypt’s northwestern coast, as well as the group’s expansions into Saudi Arabia, Iraq, and Oman.
CI Capital said the market's current share price for TMG
does not fully reflect the value of its projects both inside and outside of
Egypt. It noted that the group's regional expansion, particularly the launch of
its Banan project in Saudi Arabia and the acquisition of seven hotel companies
with a portfolio of 5,000 rooms, is driving foreign currency revenue growth.
The firm added that TMG's performance and portfolio in the
hospitality sector also support the valuation. It anticipates that ongoing
hotel renovations and efforts to improve contracts with hotel operators will
boost efficiency.
CI Capital projected that TMG will achieve contractual sales of 431 billion EGP this year. Approximately 85% of these sales are expected to come from the Egyptian market, including the South Med project. The group’s projects outside of Egypt are anticipated to contribute more significantly to total sales starting next year, rising to an estimated 27% of the total, up from about 15% of this year's projected sales.