Market Overview 
ABUK
ADIB
EKHOA
JUFO
ALCN
CSAG
SWDY


Prepared by: Mayada Amin- CETA, CFTe

Bloomberg reported that GCC countries await stability in Egypt's FX rate and an in-depth economic reform program before the injection of billions worth of investments into Egypt.

Prime Minister is heading to Qatar today in a bid to push forward talks for fresh Qatari investment.

Egypt is set to take its inaugural panda bond issuance to the market in early FY23/24, noting that early plans put the issuance at USD500 million in CNY-denominated bonds.

The government spent EGP66 billion on fuel subsidies in 1H FY22/23, 4x YoY, due to the devaluation and higher oil prices.

EBRD launched the second phase of its program to help digitize operations at the Suez Canal Economic Zone.

GASC purchased 240k tons of Russian wheat in last week’s international World Bank-backed tender.

EKHO 4Q22 net profit reached USD34 million (-6% YoY, -47% QoQ), bringing FY22 net profit to USD241 million (+41% YoY). Board proposed a dividend distribution of USD0.11/share.

EKHO targets spending USD170 million in CAPEX during FY23.

SKPC’s Board proposed a dividend distribution of EGP0.50/share. The Board also approved allocating EGP620 million to investment reserve.

ARCC 4Q22 net profit reached EGP97 million (+69% YoY, -32% QoQ), bringing FY22 net profit to EGP359 million, more than 10-folds higher than FY21.

ORAS and Arab Contractors signed a contract with French construction company NGE and its subsidiary TSO to construct half of the first phase of Egypt’s high-speed rail line.

BINV FY22 net profit reached EGP861 million (+600% y/y). The Board approved distributing dividends of EGP4.0/BINV share. Moreover, the BOD suggested another OGM soon to approve a cash dividend distribution of EGP1.0/BINV share along with a stock dividend distribution of 0.25 share/BINV share.

COMI signed a USD50 million credit risk guarantee agreement with the Dutch Entrepreneurship Development Bank “FMO” to guarantee loans granted by the bank to SMEs.

Several investment banks and sovereign funds have expressed interest in acquiring a controlling stake in Banque du Caire.

The price of chicken has fallen by around EGP10 in the past three days due to increased imports.

Chinese auto firm Dongfeng’s E70 500 Pro electric vehicles are now being sold in the Egyptian market, with Misr Helwan Automotive being its distributor.

Market Overview 


Prepared by: Mayada Amin- CETA, CFTe

Egypt's USD1.5 billion Sukuk issuance was c.4x oversubscribed, which narrowed the final yield to 10.875% from an initial guidance of 11.625%.

Cabinet approved yesterday setting price floors for corn, soybean, and sunflower crops sold by farmers to the government, to encourage farmers to increase production and lower the country’s import bill.

FDI in 1QFY22/23 reached USD3.3 billion (+94% YoY).

Egypt secured USD330 million from Japan to support The Universal Healthcare program.

Cabinet approved yesterday a request by the Ministry of Housing to stop any subsidies for low-income housing units, which used to be sold excluding the value of the land. 

Ministry of Electricity and Renewable Energy is negotiating with ORAS to launch wind electricity generation projects with capacities that could reach 3,000 MW and investments up to USD3 billion. The projects are planned to be fully operational by 2028. 

ECAP 4Q22 net profit reached EGP44.2 million (+208.0% YoY, -18.9% QoQ), bringing FY22 net profit to EGP171.1 million (+75.6% YoY).

Almarai has bought PepsiCo’s entire 48% stake in the parent company of juice and dairy producer Beyti for USD68 million. Almarai is considering exporting some USD240 million worth of Egypt-made juices and food products to its Saudi factories every year.

Stellantis, Nissan, and Al Mansour Automotive could invest a total of USD145 million in the nation’s auto industry over the next three years. If all three agreements are executed, the companies would produce a total of 60k-70k traditional and electric vehicles every year, some of which would be earmarked for export.

The Public Investment Fund has reportedly hit pause on talks for the acquisition of state-owned United Bank due to a dispute over its valuation.

Oil prices fell to their lowest in two weeks on Wednesday. Brent crude futures settled 3% lower at USD80.60/bbl. 

Kima denied the details published yesterday about the new ammonium nitrate and nitric acid project. The company clarified that the investment cost and financing structure are still under study and not determined yet.

ZMID reported FY22 net profit of EGP261.1 million, up 0.7% y/y. The Board proposed the distribution of EGP0.15/share cash dividends. 

Damietta Containers and Cargo Handling Company is negotiating with four major shipping lines to add a number of services to its terminal by the end of 1H23 as part of a strategy to increase number of containers handled.

NTRA fined Egypt’s MNOs a combined EGP35.7 million for failing to meet standards.

Market Overview 


Prepared by: Mayada Amin- CETA, CFTe

Egypt's sovereign sukuk of USD 1.5 bn was about 3.5x oversubscribed.  The final guidance price is 11.125% (± 1/8th).

The government is planning to list Misr Life Insurance by the end of 1H2023.

EGCH (Kima) is targeting to secure USD300 million to finance new production lines; 600 million tons for nitric acid and 800 million tons of ammonium nitrates. Kima may cooperate in this project with ABUK and MFPC. 

Helwan Fertilizers plans to establish a new melamine production line with investment cost of EUR200 million and is getting ready to select the general contractor. Also, the company plans to add production lines of 1 million tpa for methanol and 400 thousand tpa of ammonia at USD1.3 billion. ABUK is an owner of Helwan Fertilizers and government has put the company on its privatization plan.

The BoD of ETRS decided to appoint Zaki Hashem & Partners as a legal advisor for the acquisition of the majority of the shares of "NOSCO". The deal might be executed via share swap.

We upgrade our FV for ALCN to EGP20.46/share, to reflect: Local currency outlook over the next five years, which positively impacts the company’s revenues as it is USD-denominated. Completion of terminal 96 deepening project in Dekhela’s port by the end of 2022/23. New market entrant “Tahya MisrMultipurpose Terminal” in Alexandria port. The dividend yield for FY22/23 is expected to be 13.4%. ALCN is currently trading at FY22/23f P/E of 6.1x and EV/EBITDA of 5.7x.

The ministry of supply is offering imported frozen chicken at cheaper prices than current market prices. Head of the Egyptian Poultry Association said that the effect on the local market depends on the quantity to be imported and made available. He also said that imported feed products should have been made available instead, which will eventually lead to a decline in poultry prices.

EFIH plans EGP2.0 billion of investments in the company’s subsidiaries and is exploring investment opportunities with the PIF. 

FRA approved MNHD's EGP1.0 billion securitization bond issuance.

ELSH is looking for a partner to develop its commercial space in West Cairo.

Market Overview 
COMI
AMOC
ABUK
CCAP
ORHD
ORWE
ETRS
EGAL


prepared by: Mayada Amin- CETA, CFTe

A delegation from the EGX, the Central Bank of Egypt, and the Financial Regulatory Authority (FRA) wrapped up on Friday the week-long roadshow in Riyadh, Abu Dhabi, and Dubai where they met with 20 investment funds and institutions to raise interest in the government’s privatization program. 

EBRD is expecting the domestic economy to grow at 4.3% in FY22/23 and 5.0% in FY23/24, on the back of higher commodity prices, lower investor sentiment, higher borrowing costs and greater pressure on external accounts.

A delegation from the Japan Overseas Infrastructure Investment Corporation (JOIN) will soon visit the SCZone to explore potential investments. 

EFIH recorded net profits of EGP810 million, an increase of 55.8% YoY; driven by solid revenue growth of 34.7% YoY and margin expansion. EFIH is currently trading at 2023f P/E of 30.9x and EV/EBITDA of 20.2x.

We upgraded our fair value for EGAL to EGP39.53/share up from EGP28.70/share yet maintain an Equalweight recommendation, on the back of: 1. Better-than-expected financial results for 1H22/23 mainly on currency depreciation and decent margins, 2. A moderate, yet healthy, annual growth in global aluminum cash price, 3. Boosted revenues and margins trickle down to bottom-line, and 4. Elevated electricity tariff starting 2025/26 with an annual increase of 20%. EGAL is currently trading at attractive multiples; FY22/23e P/E of 3.2x and EV/EBITDA of 2.2x.

EFIC recorded bottom line of EGP130 million (-4% YoY, +17% QoQ). FY2022 bottom line recorded EGP756 million, up by 149% YoY. EFIC is currently trading at 2023 P/E of 7.7x and EV/EBITDA of 5.2x.

Italy’s Intesa Sanpaolo is in advanced talks with the government to acquire the remaining final 20% of the Bank of Alexandria (Alexbank) it doesn’t own. Alexbank achieved 9M22 net profit of EGP2.0 bn and book value of EGP14.2 bn, which puts the valuation of the bank at EGP22-32 bn, based on recent banking transaction multiples in Egypt. 

The CBE approved the request of ABC Bank to acquire BLOM Bank Egypt, taking into consideration the rights of employees of the merged banks. August 2021 witnessed ABC Bank acquire 99.5% of Blom Bank in Egypt, in a deal worth USD425 million (EGP6.7 bn) translating to EGP22.32 per share in 2021, implying a P/E21 of 19.7x and P/B21 of 1.3x.

The Nuclear Power Plants Authority is studying, with Russia's Rosatom, approving the participation of SWDY and ORAS in Dabaa Nuclear plant.

The Cabinet has approved a two-month extension to its expat car-for-FX scheme.

The Cabinet may raise local wheat procurement prices again, in response to many senators calling for higher purchase prices to encourage increased production.

Market Overview 



Prepared by: Mayada Amin- CETA, CFTe

The government has received several expressions of interest from international investors to look further into the details of the 32 companies to be sold under the government privatization program. 

The period from 1-18th of February witnessed the release of goods worth USD3.7 billion from Egyptian Ports, as per the Cabinet statement.

The government decided to cancel Cabinet Resolution No. 94 of 2022, which imposed price controls on rice in the local market, in hopes to increase supply in the market. 

Minister of Finance, estimated the number of companies that joined the e-receipt system at about 295,000 companies, issuing an average of 1.25 million receipts per day, up from 134 companies in 2020.

The Senate approved a government-drafted bill that would allow unlicensed industrial projects to obtain temporary licenses from IDA for one year while they work to legalize their positions. The period could be extended for an additional two years.

PHAR’s shareholders decided to postpone the originally planned capital increase at the fair value and to propose to the BoD instead a rights issue (at 50% of the issued capital) at the share’s par value of EGP10/share. PHAR is currently trading at 2023f P/E of 6.3x and EV/EBITDA of 4.8x.

The Sovereign Fund of Egypt’s (SFE) health and pharma sub-fund is eyeing a minority stake in El Ezaby Pharmacy in partnership with an unnamed investment firm. 

Ministry of Transportation will evaluate the proposals of the EUR450 million tramway project in Alexandria's Raml neighborhood mid-next month. ORAS is amongst bidders. 

Sources expect compensation from the government to contractors, due to adverse macro conditions, to reach EGP6-8 billion, which applies to projects assigned from March 2022 till the end of January 2023.

MNHD signed an MoU with CONSTEC Construction and Design to carry out construction works worth over EGP500.0 million in Sarai.

OCDI’s Magued Sherif is stepping down from his role as Managing Director effective 14 April 2023. Ayman Amer has been appointed as General Manager effective 15 February 2023.

SAUD (FV: EGP12.90, OW) 4Q22 net profit recorded EGP500 million (+6% q/q) bringing FY22 net profit to EGP1,755 million (+55% y/y). The sequential and annual improvement came in despite higher effective tax rate, mainly on the back of: 1) strong top-line growth, 2) strong non-funded income growth, 3) lower OPEX, and 4) lower impairments. The stock is currently trading at P/B23 of 0.8x and P/E23 of 4.0x, with ROAE of 21%. 

Correction: EXPA will increase the bank’s paid-in capital from EGP5.237 bn to EGP6.6 bn, where 1:16 bonus shares will add to the capital base EGP327.4 mn and the remaining EGP1.0 bn will be executed through a rights issue (in 2H23).

eKhales will provide CNFN’s customers with digital payment solutions and services across Contact’s branches and mobile application, which was launched in January 2023. EFIH is currently trading at 2023f P/E of 29.4x and EV/EBITDA of 19.3x.

SKPC released detailed audited FY22 results posting 131% YoY growth in net profit to record EGP1,238 million, compared to EGP535 million in FY21. We maintain our fair value for SKPC at EGP22.35 per share. SKPC is trading at 2023f P/E of 7.0x and EV/EBITDA of 5.7x.

RTVC EGM approved 1) the sale of RTVC’s Stella Sharm Hotel for EGP700.0 million to the National Company for Hotels and Touristic Services (Tolip) and 2) purchasing treasury shares.

Nilesat net profit increased by 26.7% YoY in 2022, to record USD38.96 million, despite the decrease in revenues from USD111.76 million to USD99.85 million YoY. 

BoD of the National Navigation Company, a subsidiary of the Holding Company of Maritime and Land Transport, decided to present a proposal to re-list the company on EGX.

Weekly Commodities Update:

Brent, USD/bbl             8