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The shares of Egypt’s Khamis family in Oriental Weavers has risen by $44.88 million (EGP702.46 million) in 48 days. The rise was due to a 32.55-percent surge in the company’s shares on the Egyptian Stock Exchange.
Oriental Weavers is a leading global machine-made rug and carpet manufacturer. It exports more than 50 percent of its production to over 100 countries.
After a resilient performance in 2020, the company recorded a consolidated net profit of $19.14 million (EGP299.74 million) in the Q1 2021. This is 72-percent higher than the $11.11 million (EGP 173.92 million) in consolidated profits posted in Q1 2020.
In reaction to the strong performance and fundamentals, investors and bargain hunters have continued to accumulate shares, pushing the company’s share price up by 31.22 percent in 48 days.
Late Egyptian industrialist Mohamed Farid Khamis, who passed away in September, founded Oriental Weavers in 1979. Since then, the company has grown from a small firm into a behemoth.
In a bid to address the rising demand for its products, Oriental Weavers revealed that it will spend $26 million on expanding its production capacity in 2021.
The expansion will see the company add nine new looms, a state-of-the-art extrusion machine that will elevate efficiency and production to a vertically integrated system, and a new digital device for the non-woven segment.
The Khamis family currently holds a 56.58-percent majority stake in the carpet company with Farida Khamis, Yasmine Khamis, Milo Slava Khamis and Amir Khamis playing significant roles in the running of the business.
As of press time, 3:40 pm (UTC+1) today, June 21, Oriental Weavers’ shares were trading at $0.51 (EGP7.86), up by 1.81 percent for the day.
The recent gains in the company’s market price have seen the value of their stake increase by 31.22 percent since the start of May.
The market value of their joint equity stake has increased from $143.77 million (EGP2.25 billion) on May 4 to $188.65 million (EGP2.95 billion) on June 21. This translates to a $44.88-million (EGP702.46 million) gain for the Khamis family in 48 days.
