- Market Overview
- COMI
- ABUK
- ORAS
- RMDA
- HRHO
- EMFD
- JUFO


- Prepared by: Mayada Amin - CETA, CFTe

PMI improved slightly in April to 46.9 up from March's 46.5, but still remained below the 50.0 threshold that separates growth from contraction, as non-oil private sector activity contracted as the Ukraine war added to cost pressures.

Net International Reserves inched up to USD 37.12 billion at the end of April, from USD 37.08 billion a month earlier.

The details of the FY2022/23 budget include total revenues projected at EGP1.5 trillion, +16.7% YoY; total expenditures expected at EGP2.07 trillion, 15.6% YoY; Overall deficit at 6.1% of GDP; Primary surplus is projected at 1.5% to GDP in FY2022/23; Debt to GDP at 84% in FY2022/23; Government to raise EGP6 billion from the government IPO program and plans to issue international bonds worth EGP91.5 billion, and borrow EGP55 billion from international financial institutions. 

Cabinet and CBE are discussing ways to facilitate importation of strategic goods and production requirements.

Prime Minister issued a decision to amend some Egyptian Accounting Standards to account for the recent change in the FX rate. FX gains and losses will be recognized within "Other comprehensive income." 

US government issued a "Reconsider travel to Egypt due to terrorism" warning to its citizens, in light of the Saturday's terrorist attack in Sinai. 

The amount of money raised through the 18% CDs reached EGP627 billion since issuance.

OPEC+ countries decided to increase the daily oil production through June to 432 thousand barrels amid fear of Russian supply interruption due to European Union sanctions. The decision also considers the Chinese lower demand due to the pandemic closures. Brent accordingly hit USD112.73/bbl. 

ABUK released positive 3Q21/22 net profit after taxes at EGP3,761 million (2.95x YoY). On an annual basis, net profit after taxes for 9M21/22 came in at EGP6,965 million that is up 1.85x YoY. ABUK is trading at 2022 P/E multiple of 5.3x and EV/EBITDA of 2.8x.

General authority of land and dry ports intends to launch a tender for the establishment and operation of Tenth of Ramadan dry port with an expected investment of EGP2.0 billion. (SWDY, ORAS)

AMIC: March’s passenger car sales recorded a 3% YoY decline and 3.8% MoM decline to reach 18.9k unit. 1Q22 sales hit 55.5k unit, higher YoY by 9.4%. GB AUTO market share reached 16.5% in March, declining by 6.5% ppt and 4.5% ppt.

FRA approved AUTO’s request to cancel 8.5 mn shares treasury shares. 

Car dealers are facing losses due to a recent decision by the Consumer Protection Agency to clamp down on the overpricing of cars, through setting retail prices by the importer or assembler.

ADCI released 9M21/22 initial financial indicators. Bottom line declined by 15.6% YoY to reach EGP69 million in 9M21/22, compared to EGP81 million in 9M20/21. On a quarterly basis net profit fell significantly recording a net loss of EGP45.7 million in 3Q21/22, compared to a net profit of EGP22.9 million in 3Q20/21. This decline is partially driven by muted sales due to insufficient raw materials/inventory for some of the products, in addition to the increase in cost of production and other expenses. ADCI is trading at FY2021/2022f P/E of 3.5x and EV/EBITDA of 1.9x

CPCI released 9M21/22 net profit EGP151 million (+46.7% YoY); On quarterly basis net profit witnessed a spike of 92% YoY to record EGP69 million in 3Q21/22. CPCI is currently trading at FY21/22f P/E of 4.5x and EV/EBITDA of 2.1x.

- Market Overview
- COMI
- ABUK
- ADIB
- AUTO
- CCAP
- EKHO
- ESRS
- ETEL
- HELI
- MFPC



- Prepared by: Mayada Amin - CETA, CFTe

The Fed raised its benchmark interest rate by 0.5%, the largest since 2000 as a response to inflation pressures. The Fed also indicated it will begin reducing asset holdings on its balance sheet in June.

Ministry of Finance decided to raise the customs dollar rate to EGP17 in May, up from EGP16 in the previous month.

Minister of Finance said that the Ministry expects achieving a primary surplus of EGP91 billion and decreasing overall deficit to 6.2% to GDP and public debt to 85% in FY2021/22.

Egypt will delay the planned offering of shares on the stock exchange of a number of state companies until September, Public Enterprise Minister told Reuters.

Suez Canal monthly revenues hit a record high in April, registering USD629 million.

El Sisi announced new measures to boost investment and support the economy: 1) incentives to local manufacturers including five-year tax breaks and usufruct contracts for land, 2) the government will present a framework that will attempt to double the size of the EGX, 3) the government will announce a plan to reduce public debt and the state’s budget deficit over the next four years.

Polish President to coordinate ways to ship Ukrainian wheat to Egypt amid the war, potentially through Polish seaports.

A CBE official said that the MPC will meet as scheduled on May 19.

Pricing for an oil barrel in the state’s FY2022/23 budget will be between USD80-85 per barrel.

CCAP reported 4Q21 consolidated financial results posting a net loss post minority of EGP958 million, versus 3Q21’s net loss of EGP441 million and 4Q20’s net loss of EGP922 million. If it weren't for the cement sector investment write down and provisions within the cement sector, which added to EGP1.3 bn, CCAP would have reported profits on a consolidated basis. 

EFIC standalone 1H22 net profit after taxes came in at EGP98 million, significantly up by 3.85x YoY. EFIC is trading at 2022 P/E multiple of 4.9x and EV/EBITDA of 2.2x.

EAST reported 3Q21/22 bottom-line of EGP1,331 mn for the quarter; a slight rise of 0.6% QoQ, however dropping by 1.5% YoY, leading to a NPM of 31.3%, flat sequentially while dropping by 2.6pps YoY from the previous 33.9% in 3Q20/21. EAST is currently trading at a FY21/22 P/E of 4.9x and an EV/EBITDA of 3.6x.

JUFO reported weak 4Q21 results, mostly on seasonality and margin pressure: attributable net profit recorded EGP37 mn, a very steep decline QoQ by a full 78.9% and 18.1% YoY. FY21 bottom-line climbed to reach EGP526 mn, a YoY rise of 22.8%. JUFO is currently trading at an FY22 P/E of 12.3x and an EV/EBITDA of 4.6x.

SUGR reported bottom-line for 9M21/22 of EGP76.8 mn, nearly flat YoY, leading to a NPM of 12.8%, versus 34.3% in the previous period.

EGAL’s aluminum local selling price dropped during May by EGP4,000/ton on the back of slowing global aluminum cash price.

ALCN released solid 3Q21/22 financial results with net profit surging to EGP549 million in 3Q21/22 (+41.8% YoY, +44% QoQ). On annual basis, net profit hit EGP1.266 billion in 9M21/22 a surge of 25.1%YoY. ALCN is currently trading at FY21/22f P/E of 8.5 and EV/EBITDA 5.9x.

Abu Dhabi ports (ADP) has signed a contract to develop, operate and manage a multi-purpose terminal in Safaga Port, whose construction is expected to be completed by the end of 2023, as part of a joint venture with the Red Sea Ports Authority and Transport Ministry’s commercial arm.

COMI could soon receive a USD20 mn loan from the European Bank for Reconstruction and Development (EBRD) for on-lending to local women-led SMEs. 

The total value of government electronic payment and collection services reached EGP3.7 trillion during the past 34 months.

AMER disclosed that legal disputes between its subsidiary, Delmar, and NUCA regarding the Porto Marina project have been resolved.

NUCA extended the deadline to 7 June 2022 to receive negotiation requests from co

- Market overview 
- COMI
- AMOC
- ESRS
- EMFD
- MFPC
- SKPC
- SWDY
- MNHD


-,prepared by: Mayada Amin - CETA - CFTe

IMF is currently in the technical discussions phase with the Egyptian authorities in terms of the anticipated loan program.

IMF’s Director of the Middle East and Central Asia Department said that the level of Egypt’s external debt is not alarmingly high, noting that the main bulk of the public debt is in the local currency, but work should be done to reduce its rates gradually.

Cabinet approved the executive regulations for the Sovereign Sukuk Law, as Egypt is preparing to issue the first sovereign sukuk offering before the end of the fiscal year.

IMF expected Egyptian exports of goods and services to rise to USD61.9 billion in FY21/22, compared to USD44.7 billion the year before, and to jump to USD65.5 billion in FY22/23. 

Imports of goods and services are expected to reach USD99.2 billion in FY21/22 compared to USD81.6 billion last the year before, to reach USD105.7 billion in FY22/23.

ESRS has reduced the price of rebars by EGP 830/ton (-4% MoM) to EGP 19,170/ton (including VAT) as of May 1, on the decline in main raw materials prices, where scrap prices dropped by USD64/ton; Iron ore 65% price dropped by USD33/ton, and Russian exported billets price decreased by USD60/ton.

SWDY announced a partnership with Wolong Electric to trade electric meters, establish a service center for electric motors in Egypt, and study the local manufacturing of electric motors eventually. 

ORHD hopes to resolve in May 2022 the issue of the withdrawal of 1.75 million sqm of its Makadi Heights land plot and that there are positive indicators on the issue so far.

OCDI plans to have the updated masterplan of its relocated West Cairo project (originally the 500-feddan project) ready in 2Q22.

EMFD Board approved its 2022-2026 strategy and budget and approved looking into loan offers from banks.

ALCN BoD approved FY22/23 budget targeting net profit after tax of EGP1,600 million vs. EGP1,410 million recorded in FY20/21 and an estimated figure of EGP1,400 million in FY21/22. Revenues are targeted to reach EGP2,629million, 10% higher than the EGP2,397 million recorded in FY20/21 and 11% higher than the estimated revenues of EGP2,372 million in FY21/22. The budget estimates number of containers handled to record 773 thousand, down 8% from the 839 thousand containers handled in FY20/21 and almost stable compared to the estimated number of containers in FY21/22.

Holdi Pharma (AXPH, CPCI and ADCI’s shareholder) is planning to invest EGP1.4 billion in capex in FY22/23.

Cabinet approved extending the exemption of airport fees for foreign airlines until the end of October 2022.

Khazna has received final approval from CBE for its Khazna card, a Meeza prepaid card launched in partnership with the Abu Dhabi Islamic Bank (ADIB) that will provide unbanked users access to the fintech startup’s financial services. 

PORT and AMER signed a contract to end the use of the Porto brand in PORT's projects given PORT's name change from Porto Group Holding to Arab Developers Holding.

ELSH AGM approved the distribution of EGP0.15/share cash dividends (DY of 2.3%).

- Market Overview 
- COMI
- EAST
- EKHO
- HRHO
- AMOC
- MFPC
- ORAS
- SKPC

- prepared by: Mayada Amin - CETA, CFTe

El-Sisi issued instructions to the government to support and stimulate the economy, through higher private sector participation in state-owned assets, the listing of companies owned by the armed forces on the stock exchange before the end of this year, reactivating the government IPO program

Government wants state institutional investors to pour more funds into EGX, particularly through pension and insurance funds

El Sisi to launch an initiative to incentivize industries to rely on local production inputs

During the period July 2021-March 2022, the fiscal deficit in Egypt to GDP declined to 4.9%

Banks opened letters of credit worth USD11.6 bn in the six weeks since 1 March, when the CBE’s new rule requiring businesses to use L/Cs to import goods came into effect.

CBE: 56% of Egyptian adults (nearly 37 mn people) held a bank account, mobile wallet, or pre-paid card at the end of 2021, up from 53% in 2020

Investors have now poured EGP600 bn into the 18% CDs

Indonesia has clarified that its export ban on palm oil only encompasses processed products like cooking and frying oil, and not crude palm oil. 

The Head of the Tobacco Committee warns that more than 23 tobacco and molasses producers are unable to import raw tobacco

CLHO announced the withdrawal of the agreement signed in October 2021 to transform a brownfield project located in East Cairo into a more than 400-bed medical facility 

CLHO has taken over the site of Sky Hospital, a c.200-bed brownfield general hospital located in East Cairo’s Fifth Settlement area

A subsidiary of PIF has purchased a stake of 6.5% in RMDA raising its total stake to 11.01%

Government is in talks with an international automaker to produce vehicles to replace tuk-tuks

Etisalat Misr reported revenues of AED1.3 bn (c. EGP6.55 bn) in 1Q 2022 (+15% YoY), subscriber base in Egypt grew 6% y-o-y to reach 28.1 mn subscribers 

OCDI expects to have a five-year strategy ready in around five weeks

MHOT net profit before tax of EGP274.3 million, compared to losses

TMGH declared cash dividends of EGP0.17/share (DY of 2.0%); Record date is 10 May; Distribution dates of installments is 15 May and 6 July

- Market Overview 
- ABUK
- ADIB
- CLHO
- COMI
- ETEL
- HRHO
- RMDA 
- SKPC


- prepared by: Mayada Amin - CETA, CFTe

Standard and Poor’s (S&P) has affirmed Egypt’s long and short-term foreign and local currency sovereign credit ratings at B/B, supported by significant external support.

Fitch affirmed Egypt rating at 'B+'; Outlook Stable, backed by the "recent record of fiscal and economic reforms, the large economy with robust growth, and strong support from bilateral and multilateral partners".

The IMF sees Egypt’s budget deficit to record 6.8% by the end of the current fiscal year, and 6.1% in FY2022/23, up from 6.3% and 5.5% respectively.

Minister of Electricity said that electricity prices in Egypt are still subsidized by the until 2025.

FWRY  4Q21 attributable net profit is EGP27.8 million (-58.6% YoY, -22.8% QoQ), FY21 attributable net profit of EGP177.2 million (-4.9% YoY); FWRY is currently trading at 2022f P/E of 61.6x and EV/EBITDA of 22.4x.

The Ministry of Finance decided not to accept paper invoices for deducting or refunding the value-added tax, effective next July, after which only e-invoices will be required (EFIH).

UAE-based fintech platform FlexxPay is expanding to Egypt; which provides an instant pay platform, instead of the traditional pay cycle. The app allows employees to manage their salaries with budgeting and savings tools.

IDHC reported strong 2021 attributable net profit at EGP1.49 billion in 2021 (+151% YoY; 4Q21 attributable net profit came in at EGP345 million in 4Q21 (+47.2% YoY, -24.1% QoQ), Proposed DPS EGP2.17/share (DY of 11.3%); IDHC is currently trading at 2022f P/E of 12.3x and EV/EBITDA of 6.3x.

OCDI achieved strong 1Q22 sales of EGP3.7 billion, up 102.2% y/y and down 37.4% q/q from 4Q that is generally a strong quarter in real estate, reaching a record 1Q high in OCDI’s history. Net profit in 1Q22 reached EGP226.0 million, up 126.0% y/y and down 56.4% q/q. OCDI is on track to reach our FY22 sales forecast of EGP11.5 billion. 

OLFI released positive 1Q22 net profit of EGP90.6 mn, +29.8% YoY, -5.1% QoQ. This drop could be mainly attributed to the increase in FX losses to reach EGP19.9 mn for the quarter, preventing the trickling down of a healthy top-line. OLFI is currently trading at a FY22 P/E of 7.1x and and EV/EBITDA of 4.7x.

Abu Auf is pushing its planned EGX debut to the second half of 2022.

ABUK reduced DPS to EGP1/share, with a record date of 09/05/2022 and a distribution date of 12/05/2022. ABUK will export 45% of production. 

CFC Fertilizers and Evergrow are finalizing agreements with the Egyptian government to establish a new factory for feed and fertilizers, with a total investment of about EGP10 billion, to produce 300,000 tons of mono-calcium phosphate, and potassium sulfate.

Al Wahda Industrial Development Company, a subsidiary of El Garhy Iron and Steel Group, has decided to acquire the National Glass and Crystal Company, a subsidiary of ADIB for EGP30 mn.

The Ministry of Public Entreprises is looking forward to offering the shares of Misr Insurance Company on the EGX, following the expected offering of 25% of the shares of Misr Life Insurance Company at the end of 2022.

Commodities:

Oil slumped 9% on Monday, its lowest in two weeks, on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates. Brent futures are trading at USD102.32/bbl and averaged USD99.63/bbl YTD.

Indonesia announced a ban on palm oil exports. The country is considered one of the major exporters for the oil as it accounts for more than half of the world’s palm oil, which is used in everything from chocolate to cosmetics. Egypt is one of the largest importers for palm oil, as Indonesia suppli