BMCE Capital Global Research (BKGR) recommends that investors subscribe to the IPO of Disty Technologies.
“We recommend subscribing to the initial public offering by capital increase and sale of Disty Technologies shares at the price proposed as part of the IPO of 284 dirhams with a target price of 318 dirhams and P/E levels (Editor's note: Price Earnings: price-to-earnings ratio)
targets of 15.4x in 2022 to improve to 13.1 in 2023 (compared to 19.5x and 17.9x for the market)", indicate BKGR analysts in a note dedicated to this operation, under the theme “Disty Technologies, a game-changer in IT distribution on the Stock Exchange”.
In its organic growth process, Disty Technologies should continue, believes BKGR, to deploy its development strategy initiated 3 years ago, which revolves around the development of its information system for better productivity, the continuation of its rationalization and digitization which enabled it to improve its operating margins in 2021 by +3.3 pts to 7% (compared to an average of 3.5% before 2019).
Thus, analysts base their opinion on five main arguments. According to them, Disty Technologies is a growing SME that supports technological and digital transformation in Morocco, adding that its ambitious development prospects are driven by the +20.1% growth of the North African PC market between 2019 and 2021 and the expected 24% growth in the international printer market.
The third argument relates to its multiple partnerships with the world's leading manufacturers of PCs, printers, and photography equipment (HP, ASUS, EPSON, CANON, etc.).
Likewise, the company offers, adds BKGR, a generous dividend distribution with a D/Y of 5.3% distributing a DPA (dividend per share) of 15 dirhams (compared to a D/Y of 5.7% for Dis way based solely on its ordinary DPA of 40 dirhams), noting that its valuation based on a conservative Business Plan, showing an upside of +12.1% compared to the proposed price.