- Market Overview 



- Prepared by: Mayada Amin- CETA, CFTe

The EU will provide EUR100 million to support Egypt in response to the rise in food prices due to Russia's war on Ukraine.

The Cabinet approved increases in 5 grants from the United States with a total value of USD74.6 million to reach a total of USD569.4 million, in the sectors of health, population, education, higher education, and agriculture.

The General Authority for Investment and Free zones (GAFI), the Financial Regulatory Authority (FRA), and the Information Technology Industry Development Agency (ITIDA) have agreed to work together to make it easier for both local and international Venture Capital Institutions to invest in Egyptian startups.

The World Bank intends to invest in 10 to 15 new funds in Egypt, provided that these funds will invest in 200 to 400 companies, providing USD50 million in funding.

Ministers green-lit amendments to the Income Tax Act. Details are not disclosed yet by the government, saying only that the amendments are designed to attract investors into the stock market.

Prime Minister Mostafa Madbouly instructed an urgent meeting to be held with major steel and cement producers to discuss the price hikes witnessed in the local market. The meeting will be attended by the head of the Consumer Protection Agency. 

HELI is to soon sign a contract to sell a 243 feddan (1.0 million sqm) land plot in New Heliopolis for EGP1,700/sqm, translating into a sales value of EGP1.7 billion. We value the potential transaction at EGP828.4 million, implying EGP0.62/share and EGP812/sqm. This potential transaction would take our FY22 (12-month period ending 30 June 2022) net profit forecast to EGP1.1 billion, P/E 2022 of 7.5x, and EV/EBITDA 2022 of 7.0x.

The government and real estate developers met to discuss ideas, such as launching mortgage finance initiatives with the private sector and looking into postponing liability payments, in an effort to mitigate the impact of the Russian-Ukrainian conflict on the sector. 

Cabinet approved yesterday the establishment of a freezone for the state-owned Egyptian Group for Multi-Purpose Terminals (EGMPT) at Alexandria port. The USD 500 mn project will established by The Alexandria Port Authority (a 34% shareholder in the company), the Suez Canal Authority (33%), the Holding Company for Maritime and Land Transport (20%), and Alexandria Container and Cargo Handling Company (13%). 

DSCW released positive 4Q21 consolidated results showing attributable net profit recorded EGP14.5 mn, compared to EGP12.6 mn the previous quarter and EGP2.0 mn in 4Q20. FY21 bottom-line is boosted by healthy and solid growth in revenues as well as a rise in export rebates by 84.4% YoY. DSCW is currently trading at a FY22 P/E of 4.0x and an EV/EBITDA of 5.6x.

RTVC reported FY21 net loss of EGP455.3 million, compared to FY20 net loss of EGP443.4 million.

The required minimum hotel price levels will be implemented starting 1 November 2022.

Doctors, physiotherapists, and dentists authorized by the Medical Syndicates Union are now eligible for the Central Bank of Egypt’s (CBE) 5% interest rate loans for SMEs.

Chinese electronic device maker Oppo has partnered with HRHO’s consumer finance arm Valu to provide installment solutions to customers.

Mopco approved in its OGM the distribution of a DPS EGP10.00 with a dividend yield of 9.6%. Record date is 06/04/2022 and distribution date is 10/04/2022.

AUTO is to divide the EGP0.35/share dividends distribution into two tranches. The first will be EGP0.10/share distributed on the 21st of April 2022. The second EGP0.25/share is to be distributed on the 29th of September 2022.

ELSH Board proposed the distribution of EGP0.05/share cash dividends (DY of 0.8%).

- Market Overview 
- COMI
- HRHO
- EKHO



- prepared by: Mayada Amin - CETA, CFTe

Inflation forecast for March 2022: We expect annual urban inflation to record 11.3% YoY, and 2.9% MoM, on surging food items, tobacco, housing and fuel, and miscellaneous goods & services after EGP depreciation and the higher impact of global inflation.

Foreign exchange resources available at Egyptian banks improved on the back of the demand for the 18% CDs offered by NBE and Banque Misr, which succeeded to attract EGP443 billion.

Egypt saw a rise in wheat imports from Russia in March to 479k tons (+24%YoY); Ukrainian wheat imports were 124.5k tons (-42% YoY).

S&P Global Ratings: Egypt will become the biggest issuer of sovereign debt in EMEA this year, which forecasts the country to sell USD73 bn in bonds.

S&P Global Ratings: The impact of the currency devaluation on banks is set to be limited given that foreign-currency lending accounts for only 20% of the loan books. Credit losses in the sector could pick up on the back of turbulence in the wider economy. The 18% CDS offered by state-owned banks in Egypt will put pressure on the banks’ NIMs.

HELI received offers from bidders interested in leasing an 11k sqm plot (with BUA of 1k sqm) located within the Merryland Park and is currently studying the offers.

DOMT BoD have given "Expeditions Investments" the green light to start the due. DOMT is appointing an independent financial advisor to determine the fair value of the company's. Offer reflects multiples of FY22 P/E of 7.6x, an EV/EBITDA of 6.9x, and a P/B of 1.5x.

The Cabinet is appointing committees to review the compatibility of the drafted local automotive industry support strategy with the relevant laws currently in effect.

Egyptian building materials exports increased by 29% YoY during the first two months of 2022 to record USD1.19 billion. Recent weeks have also witnessed a surge in metal exports from Egypt, especially steel, supported by European countries' tendency to meet their importation needs from new markets in light of the Russian-Ukrainian war.

The total value of financial leasing contracts recorded EGP3.6 billion in January 2022, compared to EGP5.4 billion in January 2021 (-32.2% YoY).

EFIH to distribute cash dividends of EGP0.10/share (EGP177.7 million) implying a DY of 0.56% and a payout ratio of 34.2% of 2021 net profit. Record date is 18 April 2022 while distribution date is 21 April 2022.

- Market Overview 
- COMI
- EAST
- MTIE
- SWDY
- SKPC
- HELI
- MNHD
- ATQA
- ATLC


- prepared by: Mayada Amin, -CETA, CFTe

Egypt PMI drops to 21-month low in March, to 46.5, down from 48.1 in February. Activity and new orders decline sharply as demand stutters. Ukraine war and pound devaluation drive input prices higher. Business confidence falls to record low amid inflation fears. 

Saudi Arabia’s sovereign wealth fund could take stakes in military-owned Wataniya Petroleum and the three Siemens-built power plants as part of its proposed USD 10 bn investment in Egypt. 

The Ministries of Finance, Trade and Industry to prepare a list of the most important production inputs and imported products for which the customs tariff needs to be reduced or raised, to encourage import substitution. 

Prime Minister confirmed that the government will work with the Central Bank to facilitate procedures for importing production requirements.

CBE issued EGP750 mn worth of five-year t-bonds yesterday, with an average yield of 14.22%.

National Railways Authority has completed the first draft for the indicative agreement with private sector investors in the management and operation of railway system. 

Russia might lift restrictions on flights to 52 countries including Egypt early next week.

EFID BoD agreed on raising Edita Morocco’s paid in capital to MAD100 mn, and on buying a new cake line from Edita Egypt.

El Nasr Automotive will sign next week with an unnamed Chinese company to locally assemble electric vehicles (EVs); Government is in talks with a private-sector firm to assemble the vehicles alongside El Nasr.

Weekly Commodities Update

Brent futures are trading at USD108.75/bbl and averaged USD98.12/bbl YTD

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

Polyethylene (HDPE) prices were unchanged WoW at USD1,560/ton

Diesel-HSFO spreads were down 21% WoW to USD485/ton

Polypropylene prices stood still WoW at  USD1,330/MT

Steel/Iron Ore spreads were also stable USD620/ton compared to last week

Fwd Aluminum prices dropped by 4% to stand at USD3,450/ton 

Retail cement prices in Egypt were stable at last week’s range of EGP1,350 -1,450 per ton

Coal prices dropped 21% WoW to record USD259/ton

Crude palm oil prices dropped 4% WoW to reach USD1,430MT

- Market overview 
- COMI
- CCAP
- ABUK
- ETEL
- HELI
- HRHO
- MNHD
- ORAS 



- Prepared by: Mayada Amin - CETA, CFTe

BINV’s BOD has accepted a binding offer for the sale of its entire stake (44.7%) in Giza Systems to a subsidiary of STC; The offer values 100% of Giza Systems at an Enterprise Value of USD145 million; Transaction has an implied EV/EBITDA22 of 5.8x and P/E22 of 9.0x; BINV is expected to distribute dividends post the exit

Industrial Development Authority decided to have the tender for the new cigarettes manufacturing license yesterday, with "Phillip Morris" as the sole bidder

DOMT received an acquisition offer for up to 90% of the company’s shares; Initial offering price is for EGP5.00/share; Implied multiples are FY22 P/E 7.6x, EV/EBITDA of 6.9x and a P/B of 1.5x

EFID inaugurated its manufacturing facility in Morocco;  Operations in the factory started in December 2021; EFID invested MAD203 mn (around EGP382.5 mn) and is set to pour an additional MAD170 mn (EGP320.3 mn) into a second phase of expansions

Afreximbank will work with SWDY and three other Egyptian companies to channel USD 1.5 bn of investment into infrastructure projects in Angola

TMGH AGM approved cash dividends of EGP0.17/share (DY of 1.9%)

PHDC AGM approved cash dividends of EGP0.10/share (DY of 6.2%); EGM approved a capital decrease from EGP6.2 billion to EGP6.1 billion through retiring treasury shares

MNHD rights issue is now 100% subscribed after the second round

- Market Overview 
- ABUK
- ADIB
- CCAP
- COMI
- EAST
- ESRS
- ETEL
- FWRY
- HELI
- HRHO
- ORAS 
- SWDY 


- Prepared by: Mayada Amin - CETA, CFTe

1Q2022 Results Expectations| Aaggregated profits will surge 30% YoY, and remain stable QoQ; For FY2022, aggregated profits will rise 26% YoY; Stocks that will witness a shift in performance: EGCH, EGAL, ABUK, AMOC, ARCC, DOMT, DSCW, AMER, MNHD, EFIH

Finance Ministry could set oil prices at USD 80-85 a barrel in the FY 2022-2023 budget

Minister of Finance noted that Egypt is preparing to issue the first sovereign Sukuk offering before the end of the current fiscal year

EBRD has downgraded Egypt’s 2022 growth outlook due to rising food and energy price inflation caused by the conflict in Ukraine to 3.1%, down from the 5.0%

Foreign Minister called on the EU for support, asking France to back Egypt in talks with both EU and international financial institutions

Suez Canal revenues rose 20% y-o-y in 1Q 2022 to USD 1.69 bn and is targeting revenues of USD 7 bn from the canal in 2022, after hitting a record USD 6.3 bn in 2021

The potential gas pipeline between Turkey and Israel is not happening anytime soon; Israel is relying on Egypt and its LNG facilities for now

Egypt has widened the number of people eligible to obtain a visa on arrival as it looks to support the tourism sector

By June 15, the Tax Authority will start implementing the seventh phase of the electronic invoice system for companies registered in Cairo, Giza, and Qalyubia

OPEC+ to increase oil production mildly in May by 432,000 barrels per day; US ordering an unprecedented release of its strategic reserves to temper prices; Brent futures trading at USD104.35/bbl

Ministry of Petroleum is looking into new measures to increase the natural gas feedstock cost for the industrial and petrochemicals sectors; The new natural gas pricing strategy will be determined through a formula that is linked to global commodity prices

ESRS raised the price of rebars, again, by EGP 3,000/ton (+18% MoM) to EGP 20,000/ton (including VAT) as of April 2, 2022

Cabinet is looking into the final decisions for the bid for new steel licenses

Sovereign Fund of Egypt (SFE), Norway’s Scatec, Fertiglobe, and Orascom Construction signed an agreement to establish and operate their planned 100 MW green hydrogen plant in Ain Sokhna 

FAB is considering submitting a new tender offer to acquire a stake in HRHO, with a value exceeding EGP20 per share

AMIC: Passenger car sales rose more than 20% YoY in February 2022, recording 19.7 thousand passenger cars, up from 16.3k in February 2021

DOMT released positive net profit for 4Q21 came in at EGP55 mn (+5.2% QoQ, +3.9% YoY) backed by trickling down of healthy top-line; Net profit for FY21 reached EGP72 mn (-54.2% YoY); DOMT is currently trading at FY22 P/E of 6.0x and EV/EBITDA of 6.0

OIH released 2021 loss from continued operations of EGP86.4 million in 2021(-45% y/y). The significant decline in losses compared to last year was mainly supported by the settlement agreement between OIH and Victore Investment worth EGP200.1 million and the positive FX differences; BoD announced focusing on Africa-based Investments in the renewable energy and real estate touristic development industries over 2022

BINV released 2021 financial results, with a consolidated attributable net income of EGP123.4 million, compared to EGP222.7 million in 2020 (-44.6% y/y); BINV BOD has proposed distributing DPS of EGP0.50, DY of 7%; BINV is currently trading at P/E22 of 10.6x and P/B22 of 0.9x

AIH released 2021 financial results, where consolidated net income stood at EGP103 million (+7.7% y/y); AIH is currently trading at P/E22 of 4.4x and P/B22 of 0.6x

EgyptAir has signed a partnership agreement with Valu and PayTabs Egypt, to finance airline ticket purchases

IFC and its IFC MENA Fund have together raised their stake in IDHC to 5%

Egyptian Drug Authority has received accreditation from World Health Organization for its locally produced covid vaccine, whi