- Market Overview 
- ESRS
- ETEL
- COMI
- HRHO
- MFPC
- ORAS 


- prepared by: Mayada Amin - CETA, CFTe

FAB withdrew VTO on HRHO

EAST declared to participate in the capital of the United Tobacco Company with 24% of the company’s capital amounting to EGP100 mn. United Company will solely bear the total cost of the value of the new license, without EAST bearing any costs in this regard. United Company will lease the building and the current production lines dedicated to the production of Phillip Morris products for a period of 3 years, with the leasing amount yet to be declared.  Phillip Morris products contribute 85-90% to the total toll manufacturing volumes for EAST. EAST is currently trading at a FY21/22 P/E of 5.1x and an EV/EBITDA of 3.7x.

 JUFO is working on revising prices based on the increase in production costs, both in terms of packaging materials, raw materials, and dairy prices, which rose from EGP8-11/kg. Raising prices will happen gradually to protect purchasing power and sales volumes. 

The government will offer nineteen water desalination projects with a combined production capacity of 3.3 mn cubic meters/day for the private sector to bid on soon. The combined investment outlay on the plants is EGP 72 bn. 

Prime Minister asked Competition Authority to prepare a study on steel and cement fair prices, in light of the recent increases and the government is eyeing more support for contractors to maintain project completion timelines.

The Commissioners’ Authority report on EGTS’s case regarding the 20.0 million sqm third phase Sahl Hasheesh land plot is scheduled to be reviewed on 21 May 2022.

Hotel occupancy rates in Hurghada are stable, ranging between 50%-55% during the first half of April 2022, compared to weak occupancy in Sharm El Sheikh. Sources expect hotel occupancy rate in Hurghada to exceed 60% by the end of April 2022 and reach at least 75% during July and August 2022.

EgyptAir is running flights between Cairo and Benghazi starting 18 April 2022.

The Consumer Protection Agency issued a decision obligating car dealerships and suppliers to set the final selling price of passenger cars to the consumer, within 20 days maximum. 

EGAS and Eni signed a framework agreement that will allow maximizing gas production and LNG exports from Egypt to Europe, specifically to Italy, with total volumes of up to 3 billion cubic meters in 2022.

In the latest tender, Egypt purchased 350,000 tons of wheat at about USD450 per ton, including French, Bulgarian, and Russian shipments.

The fiscal budget draft under discussion in the House of Representatives shows that the interest payments in FY2022/23 are projected at EGP690.1 billion (34.4% of total expenditure, which amounts to EGP2.07 trillion). The projected salaries and compensations amount to EGP400 billion.

The trade deficit declined 32.3% YoY during January 2022, recording USD2.44 billion. Exports increased by 34.5% recording USD3.99 billion.

Egypt is targeting natural gas household installations of 1.2 million in FY21/22, with 300k in 4Q21/22, to save butane gas subsidies which cost the state budget EGP17 bn per annum.

- Market Overview 
- COMI
- FWRY
- TMGH
- ABUK 
- CCAP
- CLHO
- AUTO
- EKHO


- Prepared by: Mayada Amin - CETA, CFTe

ADQ acquired state-owned stakes in five EGX-listed companies yesterday for USD1.8 bn.

The Prime Minister gave instructions to develop a strategy to recover from the repercussions of the global crisis.

Ministry of Finance approved the Tax Authority’s proposal to not disburse export rebates to projects operating under the free zone status.

The EGP moved against the USD in local banks yesterday to record 18.45-18.55/USD.

The proceeds from real estate taxes amounted to EGP3.72 billion in 9MFY21/22 (+12.2% YoY).

Government plans to soon allow buying wheat outside of tenders to increase sources.

Finance Ministry will launch a pilot of its e-receipt system for B2C transactions this Friday, 15 April (EFIH).

JUFO is planning on installing two new milk production lines with a capacity of 80k liters/hour by July 2022 to raise efficiency and capacity. JUFO is currently trading at a FY22 P/E of 11.9x and an EV/EBITDA of 4.3x.

Emirati Agthia, one of ADQ's subsidiaries, is planning on acquiring a stake in "Abu Auf" before the latter's IPO which will take place before the end of 1H22.

DSCW will appoint another independent financial advisor to prepare another fair value report for the company's shares for the purpose of increasing the capital.

The Egyptian Electricity Transmission Company has sent an invitation to 7 companies, including SWDY, to participate in a tender for the supply of cables.

HRHO completed the initial public offering of the Dubai Electricity and Water Authority.

Some EGP523 bn have been invested into the 18% CDs at Banque Misr and the National Bank of Egypt.

MNHD AGM approved the distribution of 228 million bonus shares, translating into a capital increase from EGP1.9 billion to EGP2.1 billion.

EgyptAir is resuming daily flights between Cairo and Moscow starting 14 April 2022.

ORWE announced the dates for its EGP1.00 DPS with the record date at 18-April and payment date at 21-April.

CIEB announced the dates for its EGP0.74 DPS with the record date at 18-April and payment date at 21-April.

ISPH’s GAM approved DPS of EGP0.10 (DY of 3.8%).

Market Overview 
- HRHO
- MFPC


- Prepared by: Mayada Amin - CETA, CFTe

The EGP moved against the USD in local banks yesterday to record 18.37-18.47/USD.

The General Authority for Supply Commodities (GASC) set a "limited tender" for the first time in years, to buy an unspecified amount of wheat from only European import origins. 

The Egyptian Businessmen Association is preparing a proposal to open accounts in Russian Rubles for Egyptian importers and exporters to Russia.

Prime Minister met with EGX Chairman to review the proposed plan to encourage investment in the stock market and attract foreign investments.

Ministry of Housing plans to tender 5 seawater desalination plants on the Red and Mediterranean coasts, at an initial investment of EGP6 billion (USD325 million) in partnership with the private sector (PPP). 

QNBA 1Q22 net profit pre-minority interest and appropriations recorded EGP2,208 billion (+28% q/q, +12% y/y). The stock is currently trading at 2022 multiples of P/B of 0.7x and P/E of 4.3x.

FAIT released positive 1Q22 standalone financial indicators where net income grew by 118.6% y/y recording EGP1.2 bn. FAIT is currently trading at P/E22 of 3.9x and P/B22 0.5x.

ATLC aims to add net financing of EGP3.5 billion in 2022.

The local securitization market has stepped up a gear with corporate issuances at EGP9.2 bn in 1Q2022 — 58% of the EGP 15.8 bn taken to the market in 2021.

The Senate approved yesterday the Unified Insurance Act and once passed in the House.

Cell phone importers have reduced the quantity supplied to distributors by 60-80% on supply shortages and slower global shipping (MTIE).

Nigerian fintech player OPay plans to expand its footprint in Egypt, launching pre-paid cards and linking up with the CBE’s new digital payment app. 

ETEL is to distribute a DPS of EGP1.00/share implying a DY of 6.0%. 

ABUK's BoD called the ordinary general assembly to distribute EGP2.00/share, DY of 8.4%.

PHAR declared a DPS of EGP3.00 per share (DY of 8.1%).

ELKA Board approved purchasing treasury shares of up to 5.0% of shares.

Air Arabia Egypt is running flights between Cairo and Dammam starting 26 April 2022.

*Weekly Commodities Update*

Brent futures are trading at USD100.23/bbl and averaged USD98.39/bbl YTD.

Egypt Urea Index was unchanged WoW at USD1,130/ton

Polyethylene (HDPE) prices were down 1% WoW to USD1,550/ton

Diesel-HSFO spreads were down 8% WoW to USD445/ton

Polypropylene prices climbed WoW by 0.8% to reach USD1,340/MT

Steel/Iron Ore spreads inched up 1% WoW to record USD625/ton 

Aluminum prices stood at USD3,375/ton lower WoW by 2% 

Retail cement prices in Egypt were stable at EGP1,350 -1,450 per ton

Steam Coal prices surged 13% WoW to record USD292/ton

Crude palm oil prices climbed to USD1,518MT, +6.01% WoW

SMP prices rose by 1.2% to reach USD4,599/MT on the 5th of April 2022

- Market Overview 



- Prepared by: Mayada Amin - CETA, CFTe

-Annual urban inflation in March recorded 10.5% YoY up from 8.8% in February, lower than our projected 11.3%. 

-The recently recorded inflation rates and inflation outlook room for another 100 bps rate hike.  Being aware of the costs of high interest rates on the real and fiscal sides at this stage, we believe the CBE will wait and monitor the markets’ reaction to March’s 100 bps hike, before raising borrowing costs once again. The Fed decision in early May and the momentum of Fed tightening will play a role here. 

-A delegation is soon heading to India to look into importing Indian wheat.

-Vika Egypt submitted an offer to purchase up to 56.063 million shares of Sinai Cement, or 42.12%, at a value of EGP377.8 million pounds, and an average price of 6.74 pounds per share (close to market price). Sinai Cement is reporting losses and has a negative book value. The plant has an annual capacity of 1.1 million tons per annum of white cement.  

-EKHO will distribute DPS of USD0.07 (DY 5.5%) payable on 21/04 with a record date of 18/07.  

-EFIC will distribute EGP2.00 (DY 12.3%) in two equal installments. The record date is 19/04, while distribution dates are 26/04 and 31/07. 

- Market Overview 
- COMI
- FWRY
-,EFIH



- Prepared by: Mayada Amin - CETA, CFTe

Net International Reserves dropped to USD37.08 billion in March 2022 down from USD40.99 billion in February, for "covering substantial foreign investor outflows, ensuring availability of imported strategic goods, and repaying external debt obligations."

Government is still aiming to maintain a primary surplus of 1.3%, the overall budget deficit at 6.2%, and the debt-to-GDP ratio to be less than 90% by the end of the current fiscal year.

Inflation figures for March 2022 will be released today, We expect urban inflation to record 11.3% YoY, and 2.9% MoM.

The joint committee of the "QIZ" agreement intends to add new industries such as communications and information technology, processed foods, and leather.

The House of Representatives Industry Committee is preparing a study on strengthening local manufacturing and increasing exports, to achieve industrial integration between small and large enterprises, and to activate small projects’ participation in national projects.

Customs exchange rate fixed at EGP16/USD for basic commodities and production requirements until the end of April.

ADQ is to acquire the National Investment Bank’s (NIB) entire 21.5% stake in ABUK.

EGCH (Kima) addressed a consortium of 6 local banks to reschedule debts worth EGP6.4 billion to 7 years, to end the loan tenor in 2034 instead of 2028.

EKHO decided to swap the trading currency for 1.5 million shares from EGP to USD. 

Afrexim Bank granted letters of guarantee worth USD1.0 billion for Egyptian contractors, to implement infrastructure projects in African markets, including SWDY, ORAS.

EFIH plans to deploy 1500 PoS machines in gas stations across Egypt until 2023, with 180 PoS machines in phase one.

ADQ plans to acquire a stake of around 15% in FWRY during 3Q22.

The digital banking license is set to be introduced in 2Q22. EFIH, COMI interested.

HELI signed the contract to sell a 243 feddan (1.0 million sqm) land plot in New Heliopolis for EGP1,700/sqm. We value the transaction at EGP828.4 million, implying EGP0.62/share and EGP812/sqm. This transaction takes our FY21/22 net profit forecast to EGP1.1 billion, P/E 2022 of 7.4x, and EV/EBITDA 2022 of 6.9x.

EFID is planning to invest EGP1.0 bn over the course of the coming three years; EGP400 mn to add new production lines for its baked goods and wafers; Some for expanding cake production in Morocco.

Passenger cars importers and assemblers are raising prices in the local market. The local agent for the Renault brand in Egypt announced an increase in the prices of its brands between EGP25k-55k for 2022 models. 

EgyptAir is resuming daily flights between Cairo and Moscow starting 12 April 2022.

The Sovereign Fund of Egypt (SFE) is planning to invest in two companies in the financial inclusion and non-banking financial services sectors before the end of 2Q22. 

HRHO is the financial advisor for the Saudi Wealth Fund (PIF) on its potential acquisition of Siemens plant(s).

MHOT is planning to inaugurate its Safir Dahab Hotel during Eid El Fitr in May 2022.