Research & Analysis

Despite an unfavorable sectoral context, CIMAR outperformed its market at the end of H1-20. The operator posted cement sales volumes down -7.1% against -17.8% for the sector.

As one of the world's TOP 10 Silver mines, SMI is among the few single-product miners with a competitive cash cost between 8.0 and 9.0 $/Oz. The sustainability of current Silver price levels, combined with the stability of SMI’s production, would allow the mining operator to benefit from a considerable margin effect.

With a correction of -5.8% since the beginning of 2020 against -17.3% for the MASI index, TAQA Morocco confirms its status as a defensive stock offering a real investment alternative for risk averse investors.

After a slight increase of 0.5% in Q1-20, the aggregate revenue of listed companies at the end of the 2nd quarter stood at MAD 55.7 Bn, down -10.5%. In more detail, 54 listed companies reported declining revenue in Q2-20 against 36 in the pre-vious quarter. [...]

After hitting a low since April 2013, we note a significant improvement in investor confidence toward the Equity market in September 2020. In more details, AGR Confidence Index stood at 46.6 pts, up +11.1 pts in comparison to the previous edition.

The diversification of Mutandis’s business portfolio strengthens the resilience of its results in 2020. To this end, the stock rate should benefit from a natural drop in its cost of capital on the stock market. According to our own valuation, the share price offers a potential increase of 33%.

The half-year results of Label Vie in H1-20 confirm the positive dynamics of the modern distribution sector in Morocco. Thanks to double-digit profit growth on MT, we believe the share price offers an attractive margin of appreciation of 28%.

The consumer credit sector is deeply affected by the Covid-19 crisis. However, we believe that the correction of the Eqdom on the stock market by -38% since January 2020 is disproportionate compared to the potential for a recovery in its fundamentals by 2022.

In our survey conducted in September, we identified investors' expectations regarding the evolution of the Moroccan central bank key rate in H2-20. Recall that this survey was carried out among a sample of 34 investors regarded as the most influential within the Moroccan stock market.