swot analysis - Search Center - Bank Audi

ENTITY OF AUDI SARADAR GROUP 

CURRENT PRICE EGP 5.00 

FAIR VALUE EGP 5.01 

RATING HOLD 

Stock Data 

Ownership Structure 

Stock Performance 

Bloomberg Consensus 

September 14, 2012 

HIGHLIGHTS 

Ticker JUFO EY 

Bloomberg Median TP (EGP) 5.71 

Market Cap (EGP mn) 3,531 

Market Cap (USD mn) 579 

Number of Shares (mn) 706.1 

Av. Monthly Liquidity (EGP mn) 54.9 

52 Week High (EGP) 5.05 

52 Week Low (EGP) 3.69 

COMPANY COVERAGE 

Alaa Ghanem, CFA, CVA 

Senior Equity Analyst 

Alaa.Ghanem@asib.com 

Youssef Nizam, CFA 

Head of Equity Research 

Youssef.Nizam@asib.com 

INITIATION OF COVERAGE 

JUHAYNA FOOD INDUSTRIES 

EQUITY RESEARCH 

COST INCREASE COUNTERBALANCES CAPACITY GROWTH 

Juhayna is a leading food producer in Egypt. It produces milk, yoghurt, cheese and Juice. The company 

has the primary market share in most of the sectors it operates and it is spending heavily on expansion. 

Dairy consumption in Egypt increased by 11% between 2008 and 2011 and it is expected to increase by 

10% in the coming 3 years. Fluid milk accounts for about 45% of total dairy consumption and Juhayna 

has more than 70% market share. Dairy contributed 51% of 2011 total revenues. The company is 

establishing a dairy farm in order to meet up to 50% of its milk demand. 

Demand for yoghurt increased by 60% between 2009 and 2011 to reach 156 million Kg in Egypt and it 

is expected to grow by 25% in the coming 3 years. The company is restoring its market share after the 

drop in 2010 because of the fire in Egyfood. Juhayna is in the process of doubling the capacity of its 

yoghurt plant. Yoghurt contributed 27% of the company’s total revenues in 2011. 

Juice demand increased at a CAGR of 17% between 2009 and 2011 in Egypt to reach 351 million Kg, and 

it is expected to increase at a CAGR of 8% in the coming 5 years. Overall, Juhayna has a market share 

of 19% as it dominates the pure segment. Juice contributed 19% of total revenues in 2011. 

The company is following a vertical integration. On top of the dairy farm, it is establishing a fruit farms 

in order to fulfill about 50% of its fruit needs in addition to the cultivation of animal feed. This helps the 

company to have more control on the raw material sources, including prices and quality, and also to 

reduce its exposure to foreign currency risk. 

Juhayna has a well established distribution network of 24 centers and more than 800 vans. The 

company is keeping investing in the development and expansion of its distribution capabilities. 

In the short term, however, fodder prices are going to increase in the coming quarters because of 

unfavorable weather conditions that reduce the grain crop globally. Moreover, the volatility in the prices 

of crude oil affects the production, packaging and distribution cost. 

Juhayna is able to benefit from the demand growth in the sectors it operates and also to gain more 

market share in some segments, namely yoghurt. Profitability margins will shrink in the short term 

because of the increase in the fodder cost and the expansion of the distribution network. The increase of 

the capacity of the yoghurt factory, the expansion of the milk production lines and the establishment of 

the dairy farm, and the agriculture business will increase revenues and reduce cost in the medium term, 

which will improve margins. We initiate our coverage with a fair value of EGP 5.01 per share, and we 

recommend to hold the stock. 

FINANCIAL DATA 

2011 2012e 2013e 2014e 

Revenues EGP mn 2,244 2,782 3,244 3,848 

EBITDA EGP mn 385 506 555 701 

NI EGP mn 186 247 255 388 

EPS EGP 0.26 0.35 0.36 0.55 

PE 18.99 14.30 13.85 9.10 

BVPS EGP 2.57 2.83 2.97 3.39 

PB 1.95 1.77 1.68 1.48 

DPS EGP 0.15 0.18 0.23 0.32 

Dividend Yield 3.0% 3.6% 4.6% 6.4% 

1

JUHAYNA FOOD INDUSTRIES INITIATION OF COVERAGE 

EQUITY RESEARCH 

TABLE OF CONTENTS 

Company Overview 2 

Investment Case 3 

Dairy 3 

Yoghurt 4 

Juice 5 

SWOT Analysis 8 

Valuation 9 

Pro Forma Financials 10 

Appendix 11 


COMPANY OVERVIEW 

Established in 1983, Juhayna is a leading food producer in Egypt. The company mainly operates in 

producing and packaging various kinds of dairy and juice products. Production began in 1987 with 

a capacity of 35 tons/day and total sales of EGP 2.4 million. Currently, Juhayna with a paid up capital 

of EGP 706 million, employing a work force of 3,700 employees and having a daily production 

capacity of 2,900 tons. 

Chart 1: 2011 Sales by Sector 

Source: Company Financials 

Most of the sales are in the local market and exports accounts for just 5% of total revenues in H1 12. 

Juhayna has leading market shares in most of the segments it operates and it is in the process of 

increasing its capacity in the milk and yoghurt sectors. 

The company is establishing dairy and fruit farms in addition to the cultivation of animal feed in a 

step to have more control on the raw material sources, including prices and quality. 

Juhayna has also a well established distribution channel with more than 800 vehicles and 24 

distribution centers and it is in the process of opening additional distribution centers. 

Table 1: Group Legal Structure 

Juhayna Food Industries SAE 

(Milk & cream) 

Subsidiaries Ownership Products 

Dawleya Company 99.9% Juice 

Egyptian Food Industries 

(Egyfood) 

99.9% Yoghurt 

Masreya Dairy 99.9% Milk & Cheese 

El Marwa Food Industries Co. 99.9% Fruit Juice & Concentrates 

Modern Concentrate Co. 99.9% Fruit Juice & Concentrates 

Al Enmaa For Agricultural 

Development 

Enmaa For Reclamation & 

Agriculture 

99.9% Agriculture Land 

development 

99.9% Agriculture Land 

development 

Enmaa For Livestock 99.9% Dairy Farm 

Milkys Dairy Co. 40.0% Dairy Farm 

Tiba For Trading & Distribution 99.9% Sales & Distribution 

2


Imports are increasing at a decreasing 

rate 


INVESTMENT CASE 

DAIRY SEGMENT 

INITIATION OF COVERAGE EQUITY RESEARCH 

Demand for milk and dairy products in Egypt is increasing due to two main reasons: 

1 Population growth: annual historical rate averaged 1.9% during the last 10 years, according to 

IMF, and expected to increase slightly to 2% in the coming 6 years. 

1 Rising per capita consumption: from 47.6kg in 2007 to 49.8kg in 2010 and it is expected to reach 

53.6kg in 2015, according to Fapri. 

Chart 2: Dairy Consumption 

Source: Fapri 

Fluid milk accounts for about 45% of total dairy consumption. Local production, on the other hand, 

depends on 2 main factors: 

1 The number of milking cow heads: expected to increase slightly from 1.62 million in 2006 to 1.69 

million in 2015. 

1 Yield per cow: showing a noticeable improvement from 2.48 kg per day in 2007 to 2.75 in 2010, 

and expected to reach 3.48 in 2015 (CAGR of 4.8%), according to Fapri. 

Chart 3: Milk Production 

Source: Fapri 

Despite this increase, local production just covers a portion of total demand. Both local and foreign 

companies are eyeing the dairy market in Egypt to benefit from the deficit in the production 

capacity. Egyptian Dina Farms, for example, aims to double its 11,000 milking and non-milking cows 

herd by 2014. Juhayna is establishing its own dairy farm of 14,000 heads. Saudi Almarai plans to 

invest heavily in Egypt in order to gain a large market share. Therefore, imports are expected to keep 

increasing in the coming years but at a decreasing rate. 

3


Conversion rate toward packaged milk 

is slow 

Emphasizing on cost efficient products 

On track to reduce reliance on 3 rd party 

suppliers 


Chart 4: Imports 

Source: Fapri 


Important to note that the drop in production and consumption in 2009 was due to various kinds of 

diseases that affected the livestock in Egypt. Disease is a continuous risk that threats animal farms in 

Egypt which could lead to death and reproduction failure, and some limited cases were discovered 

in small farms in Egypt in 2012. 

Around 85% of the market is loose milk and just 15% is packaged milk. Different campaigns are 

done in collaboration between the private sector (including Juhayna) and the government in 

order to raise awareness among the public of the advantage of using packaged milk. However, the 

conversion toward the use of packaged milk is still slow mainly because of the price difference and 

it is expected to reach 20% in 2014. 

Juhayna is a main player in the plain packaged milk industry in Egypt with a market share of 70% 

followed by Beyti, indirectly owned by Almarai (8%). Juhayna is also the main player in the flavored 

packaged milk with a market share of 74% in 2011. In addition to milk, which is the largest contributor 

to the dairy revenues, Juhayna produces white cheese and cream. The company is increasing its 

dairy capacities - new production lines were installed during H1 12 and others will be installed in 

the coming quarters - and emphasizing on cost efficient and small size product. The dairy segment 

contributed more than 50% of the company’s total revenues in 2011. About 170 thousand tons were 

sold in 2011, recognizing revenues of EGP 1.1 billion. 

In order to reduce reliance on third parties, Juhayna is in the process of establishing its own dairy 

farms of 14,000 cows, allowing it to satisfy up to 50% of its raw milk needs – construction to begin in 

2013. This comes after the previous acquisition of 40% of Milkys Dairy, satisfying 10% of milk needs. 

In addition, it is in the process of the cultivation of animal feeds in order to have more control on raw 

material sources, including prices and quality. 

YOGHURT 

Demand for yoghurt increased by 60% between 2009 and 2011 to reach 156 million Kg in Egypt and 

it is expected to grow by 25% in the coming 3 years. However, per capita consumption remains one of 

the lowest in the world. 

Chart 5: Yoghurt Per Capita Consumption 

Source: Juhayna 

4


Fast conversion toward packaged 

yogurt 

Juhayna has the capability to expand 

in the juice sector 



Changing lifestyle, increasing health awareness and the entrance of international brands resulted in 

aggressive conversion from loose to packaged yoghurt, especially that there is little price difference. 

Packaged yoghurt accounted for 66% of total market in 2011 compared to 44% in 2008. 

Juhayna produced 61 million Kg of yoghurt in 2011, 39% higher than 2010. The company has a 

leading share of 73% in the drinkable market but it ranks second in the spoonable market with a 

31% share, after Danone (35%), according to MEMRB. 

The company’s share in the yoghurt market dropped from 44% in 2009 to 39% in 2011 due to the 

fire in its factory in 2010. In order to restore and also to increase its share, Juhayna is in the process 

of establishing a new EGP 330 million yoghurt factory in order to double its capacity. Operations are 

expected to start in mid 2013 and the company took a loan of EGP 300 million to finance the project. 

Chart 6: Juhayna Market Share in the Yoghurt Segment 


JUICE 

Juice demand increased at a CAGR of 17% between 2009 and 2011 in Egypt to reach 351 million Kg, 

but per capita consumption remains low at about 4 liters/year. Consumption is expected to increase 

at a CAGR of 8% in the coming 5 years, according to FAPRI. 

Chart 7: Juice Per Capita Consumption 


While the pure share remains constant at about 3% of total juice market, the nectar share is increasing 

(from 56% in 2009 to 59% in 2011) at the cost of drink. The juice market is fragmented with more 

than 300 players. Juhayna produced 67 million kg of juice in 2011 with an overall market share 

of 19%. Because the juice market is fragmented, and because Juhayna has the needed expertise 

and most importantly a well established distribution network, we believe that the company should 

expand in this sector in order to gain more market share in the nectar and drink segments. 

5



Chart 8: Juhayna Market Share in the Juice Sector 

Source: Juhayna, ASIB 

Table 2: Summary of Financials 

Revenues 

EGP million 


2008 2009 2010 2011 H1 12 

Dairy 918 907 1,037 1,135 644 

Yoghurt 262 364 402 614 346 

Juice 264 287 384 421 240 

Concentrate 18 20 39 45 17 

Agriculture 0 0 0 29 20 

Total 1462 1578 1861 2244 1267 

% of Total Revenues Dairy 63% 57% 56% 51% 51% 

Yoghurt 18% 23% 22% 27% 27% 

Juice 18% 18% 21% 19% 19% 

Concentrate 1% 1% 2% 2% 1% 

Agriculture 0% 0% 0% 1% 2% 

Gross Margin Dairy 8.0% 16.4% 16.2% 13.8% 27.0% 

Source: Juhayna, ASIB 

Yoghurt 22.4% 38.1% 36.8% 34.6% 35.0% 

Juice 34.3% 33.7% 32.2% 27.0% 29.0% 

Concentrate -5.1% -18.9% -16.3% 14.6% 21.0% 

Agriculture NA NA NA 34.6% 8.0% 

Total 20.0% 32.5% 31.3% 28.3% 28.2% 

Despite that dairy revenues are increasing, its contribution to total revenues is dropping while 

yoghurt contribution is increasing for 4 main reasons: 

1 Overall demand for yoghurt in Egypt is expected to increase at a faster pace than that of dairy 

in the coming few years. 

1 The conversion rate to packaged products is higher for the yoghurt than that of milk. As such, 

Juhayna has a greater ability to pass the increase in raw material costs to end consumers in the 

yoghurt products than that in the dairy products, as the price difference between loose and 

packaged products is smaller for yoghurt than that of milk. Average price for dairy products 

increased by 4% between Q1 11 and Q1 12, while it increased by 10% for yoghurt products, 

despite the higher competition in this sector. 

1 Gross margin of the Yoghurt segment is much higher than that of dairy. 

6


Backward integration reduces the 

company’s volatility of earnings 



1 Juhayna has a leading market share in the milk (plain and flavored) which is much higher than 

its share in the yoghurt segment.As such, Juhayna is in the process of doubling its yoghurt capacity 

in order to gain market share in this segment, which will increase yoghurt contribution to 

total revenues. At the same time, the company is working to maintain its leading market share 

in other segments. 

The volatility of the cost of fruits and animal feeds highly affects the performance of Juhayna. As 

such, the company is trying to secure parts of its needs by establishing a fruit farm, allowing it to 

secure about half of its fruit needs for concentrate plants, in addition to the cultivation of animal 

feeds. In the short term, however, the increase in the price of grains due to bad weather (including 

US and India) is expected to be reflected negatively in the company’s performance in the coming 

quarters. 

Juhayna has also a well established distribution channel with more than 800 vehicles and 24 

distribution centers and it is in the process of opening additional distribution centers. 

On the other hand, local currency devaluation is a main risk that threatens the company especially 

that more than 25% of raw materials are imported. 

In addition to local sales, Juhayna exports to neighborhood countries. Exports contributed 7.8% 

of total revenues in 2010, but it dropped to 4.1% in 2011, mainly due to the war in Libya, which 

accounted for 70% of total exports. In addition, gross margin dropped from 14% in 2010 to 8% in 

2011. Exports has started to improve in H1 12, and it contributed 5.2% of total revenues. 

Chart 9: Exports 


Juhayna was accused of violating of Anti-Monopolistic Law in pricing milk as well as many of 

its raw milk competitors such as Beyti and Enjoy. The Egyptian Competition Authority (ECA) has 

revealed that the three companies fixed the prices of raw milk bought from farmers. If proven true, 

a maximum fine of EGP 300 million will be imposed on Juhayna according to the law of punishment 

for any anti-competitive and monopolistic practices. 

7



SWOT ANALYSIS 

STRENGTHS 

1 Leading market shares 

1 Well established distribution channel 

1 Establishing of dairy and fruit farms 

1 Pricing flexibility 

WEAKNESSES 

1 High Inflation in Egypt 

1 Slow conversion to packaged milk 

1 Increase of fodder cost 

OPPORTUNITIES 

1 Restoring of exports 

1 Increasing capacity 

1 Fast conversion to packaged yoghurt 

THREATS 

1 Animal Disease 


1 High competition in the yoghurt and juice segments 

1 Fluctuation of costs of raw materials, including oil 

1 Currency devaluation 

1 Anti-monopoly case 

8



VALUATION 


The company has managed to benefit from the demand growth in the sectors it operates and also 

to gain more market share in some segments, namely yoghurt. According to our model, profitability 

margins will shrink in the short term because of the increase in the fodder cost and the expansion 

of the distribution network. The increase of the capacity of the yoghurt factory, the expansion of 

the milk production lines and the establishment of the dairy farm, and the agriculture business will 

increase revenues and reduce cost in the medium term, which will improve margins. We rely on the 

FCFF model to value the company’s share. We initiate our coverage with a fair value of EGP 5.01 per 

share, and we recommend to hold the stock. 

Table 3: FCFF 

EGP million unless otherwise stated 2012e 2013e 2014e 

Net Income 247 255 388 

Non-Cash Charges 172 203 212 

Fixed Capital Investment 500 500 300 

Change in Working Capital 70 82 53 

After Tax Interest 55 64 57 

FCFF (95) (60) 303 

PV of Terminal Value 3,613 

Net Debt 183 

Shares Outstanding (million) 706 

WACC 13.5% 

Terminal Growth 4.1% 

Fair Value (EGP) 5.01 

9



PRO FORMA FINANCIALS 


EGP million unless otherwise stated 2010 2011 2012e 2013e 2014e 

Sales 1,861 2,244 2,782 3,244 3,848 

Growth 18% 21% 24% 17% 19% 

COGS (1,279) (1,609) (1,973) (2,347) (2,733) 

Gross profit 582.7 635.0 809.6 897.3 1,115.1 

Growth 14% 9% 28% 11% 24% 

Gross margin 31.3% 28.3% 29.1% 27.7% 29.0% 

S&D expenses (205) (255) (356) (406) (462) 

G&A expenses (82) (98) (121) (141) (169) 

Others* 19 (35) 2 2 5 

EBITDA 441 385 506 555 701 

EBITDA margin 23.7% 17.2% 18.2% 17.1% 18.2% 

EBIT 315 246 334 353 489 

EBIT margin 16.9% 11.0% 12.0% 10.9% 12.7% 

Net finance cost (59) (39) (59) (68) (60) 

Taxes (28) (23) (28) (29) (40) 

NI to shareholders 228 186 247 255 388 

Growth 23% -18% 33% 3% 52% 

Net margin 12.2% 8.3% 8.9% 7.9% 10.1% 

*2011 figure included EGP 41 million factory fire losses 

EGP million unless otherwise stated 2010 2011 2012e 2013e 2014e 

PPE 1,151 1,329 1,657 1,954 2,042 

Under construction 138 214 300 200 140 

Goodwill 97 97 97 97 97 

Investments 39 42 44 45 47 

Others 1 1 1 1 1 

Total non current assets 1,425 1,683 2,099 2,297 2,327 

Cash & equivalents 724 691 533 543 666 

Inventories 280 397 468 556 629 

AR 299 188 231 273 316 

Others 1 1 2 2 2 

Total current assets 1,303 1,278 1,233 1,373 1,612 

Total assets 2,728 2,961 3,332 3,670 3,940 

LT loans 384 252 299 320 320 

Other Liabilities 77 81 85 93 104 

Total non current liabilities 461 334 384 413 424 

Short term debt 377 647 739 898 798 

Trade balances 217 149 187 235 287 

Others 29 20 26 27 37 

Total current liabilities 623 816 952 1,160 1,123 

Total liabilities 1,084 1,149 1,336 1,573 1,547 

Total equity 1,644 1,812 1,996 2,097 2,393 

ROAE 20.5% 10.8% 13.0% 12.5% 17.3% 

ROAA 9.8% 6.5% 7.8% 7.3% 10.2% 

Net debt to equity 0.02 0.11 0.25 0.32 0.19 

10



APPENDIX I 

RELATIVE VALUATION 


Below are some food producers with similar business model in the world. We include these figures 

for comparative purposes only. Calculation is based on 2011 numbers, except PE, PB and EV/EBITDA 

ratios which are based on trailing figures ending Q1 or Q2 12 (according to the availability of data). 

Table 4: Relative valuation 

PE PB EV/EBITDA DVD ROE ROA Net Debt 

to Equity 

Net 

Margin 

Gross 

Margin 

Alaska Milk Corp 10.58 3.16 5.47 4.5% 18.0% 11.9% (0.61) 9.4% 28.2% 

Nestle Lanka PLC 22.57 12.89 16.09 5.4% 79.0% 29.5% (0.02) 10.2% 33.3% 

JM Smucker Co 15.60 1.60 8.54 2.5% 8.9% 5.0% 0.36 8.3% 34.2% 

Dean Foods Co 14.94 NA 8.14 0.0% 6.0% 1.1% 2.63 0.8% 24.8% 

Agrana AG 7.77 1.14 5.83 4.5% 14.2% 6.5% 0.54 5.9% NA 

Oarmalat SpA 11.34 0.74 4.97 3.9% 6.0% 4.7% (0.41) 5.0% 20.6% 

Almarai 15.24 3.06 11.87 2.3% 16.8% 7.3% 0.98 14.3% 37.7% 

Nadec 28.01 1.51 10.09 5.1% 8.6% 3.9% 0.83 5.9% 35.2% 

Halwani Brothers 14.30 1.98 7.59 3.7% 15.0% 11.7% (0.20) 9.9% 29.9% 

Average 15.60 3.26 8.73 0.04 19.2% 9.1% 0.45 7.7% 30.5% 

Juhayna 17.10 1.85 8.13 3.8% 10.3% 6.3% 0.12 8.3% 28.3% 

APPENDIX II 

SCENARIO ANALYSIS 

We run scenario analysis concerning the major economic risks that threaten Juhayna’s operating 

environment - the depreciation of the Egyptian Pound and the change in the interest rate – and how 

they affect the valuation of Juhayna. 

EGP/USD 

WACC 

12.0% 13.0% 13.5% 14.0% 15.0% 

5.5 7.09 6.15 5.76 5.41 4.82 

6.1 6.08 5.31 5.01 4.69 4.19 

6.7 6.08 5.31 4.98 4.69 4.19 

7.3 5.61 4.9 4.61 4.34 3.88 

7.9 2.61 2.31 2.17 2.05 1.83 

11


FAIR VALUE DEFINITION 


RATING GUIDE 

ISSUER 


It is an unbiased estimate of the 12-month potential market price of the stock 

SELL REDUCE HOLD ACCUMULATE BUY 

Downside -30% -10% +10% +30% Upside 

BUY: Upside potential in share price is more than 30% 

ACCUMULATE: Upside potential in share price is between 10 and 30% 

HOLD: Upside or downside potential in share price less than 10% 

REDUCE: Downside potential in share price is between 10 and 30% 

SELL: Downside potential in share price is more than 30% 

Audi Saradar Investment Bank 

Audi Saradar Investment Bank SAL • Lebanese joint stock company with a registered capital of 

10,000,000,000 Lebanese Pounds • Commercial Registrar in Beirut: 30812 • Holding number 33 on 

the Central Bank’s Banks List. 

Bank Audi Plaza • Bab Idriss • Beirut 2021 8102 Lebanon • P.O. Box 11-2560 • Beirut 1107 2808 • 

Lebanon. Phone: +961 1 964072 • Fax: +961 1 970403 • Email: contactus@asib.com 

12



DISCLAIMER 


“All rights reserved. This research document (the “Document”) is prepared by Audi Saradar Investment Bank SAL (“ASIB”), 

being an entity of Audi Saradar Group, for the use of the clients of ASIB and/or the clients of any entity within the Audi 

Saradar Group. 

This Document is disclosed to you on a confidential basis. Receipt and/or review of this Document constitute your agreement 

not to copy, modify, redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information 

contained in this Document prior to public disclosure of the same by ASIB or the Audi Saradar Group or without the express 

prior written consent of ASIB. 

This Document is not intended for dissemination, distribution to, or use by, any person or entity in any country or jurisdiction 

which would subject ASIB or any entity within the Audi Saradar Group, to any registration or licensing requirements within 

these jurisdictions or where it might be considered as unlawful. Accordingly, this Document is for distribution solely in 

jurisdictions where permitted and to persons who may receive it without breaching any applicable legal or regulatory 

requirements. In any case, this Document shall not be distributed in the Republic of Egypt. 

Your attention is drawn to the fact that you should not access this Document if the regulations of your country of citizenship 

and/or residency or any applicable regulations prohibit it. In any case, persons who are subject to any restrictions in any 

country, such as US persons are not permitted to access information contained herein. 

Neither the information, nor any opinion expressed herein constitutes an offer or an invitation or a recommendation to 

make an offer, to buy or sell any security or other investment product related to such security or investment. This Document 

provides general information only, is not intended to provide personal investment advice or recommendation and does not 

take into account the specific investment objectives, financial situation and the particular needs of any specific person who 

may receive it. You should seek financial, legal or tax advice regarding the appropriateness and suitability in investing in any 

security, other investment or investment strategy discussed or forecasted in this Document. 

You should carefully read the definitions of the Rating Guide provided in this Document. In addition you should read this 

Document in its entirety and not conclude its contents from the ratings solely. 

The information herein was obtained from various public sources believed in good faith to be reliable. Neither ASIB nor any 

entity within the Audi Saradar Group represents that the information contained in this Document is complete, accurate 

or free from any error and makes no representations or warranties whatsoever as to the data, information and opinions 

provided herein. 

This Document and any information, opinion and prospect contained herein reflect a judgment at its original date 

of publication by ASIB and are subject to change without notice. ASIB and/or any entity within the Audi Saradar Group 

may have issued, and may in the future issue, other research documents that are inconsistent with, and reach different 

conclusions from, the information, opinions and prospects presented in this Document. 

This Document reflects the different assumptions, views and analytical methods of the analysts who prepared them; ASIB, 

and the Audi Saradar Group are under no obligation to ensure that such other research documents are brought to the 

attention of any recipient of this Document. 

ASIB, any entity within the Audi Saradar Group, one or more of their affiliates and/or their officers (including but not limited 

to their strategists, analysts and sales staff) may have a financial interest in securities of the issuer(s) or related investments, 

may engage in securities transactions, on a proprietary basis or otherwise, in a manner inconsistent with the view taken in 

this Document and may take a view that is inconsistent with that taken herein. 

The price, value of and income from any of the securities or financial instruments mentioned in this Document can fall as well 

as rise. The value of securities and financial instruments is subject to market conditions, volatility, exchange rate fluctuation 

and credit quality of any issuer that may have a positive or adverse effect on the price or income of such securities or 

financial instruments. Any forecasts on the economy, stock market, bond market or the economic trends of the markets are 

not necessarily a guide to future returns. You should understand that statements regarding future prospects may not be 

realized. Past performance should not be taken as an indication or guarantee of future performance, and no representation 

or warranty, express or implied, is made regarding future returns. As a result of the preceding, you may lose, as the case may 

be, the amount originally invested. 

None of ASIB, any entity within the Audi Saradar Group, any of their affiliates and/or their officers (including but not limited 

to their strategists, analysts and sales staff) shall be held liable for any loss or damage that may arise, directly or indirectly, 

from any use of the information contained in this Document nor for any decision or investment made on the basis of 

information contained herein.” 

13

swot analysis - Search Center - Bank Audi

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