- Market Overview
- COMI
- ABUK
- AMOC
- EAST



Prepared by : Mayada Amin - CETA, CFTe

Inflation for February: Annual urban inflation jumped to 8.8% compared to 7.2% in January; Monthly reading is 1.6% up from 0.9% in January, on soaring food prices, and unfavorable base effect

The government will try to absorb the costs of the rising commodity prices “as much as possible” and relieve the inflationary impact on the public

The government budget has EGP170 billion of emergency provisions to face the repercussions of the current crisis between Russia and Ukraine

Egypt’s exports recorded growth of more than 15% YoY in the first two months of 2022

The WB expected Egypt’s tourism sector to witness stagnation, as  Russians and Ukrainians make up at least a third of tourist arrivals

US and European stocks had their best day since 2020 on hopes of a diplomatic solution to the Russia-Ukraine conflict

Brent fell 12% to USD 112 a barrel after the UAE’s US ambassador suggested that the country would push OPEC+ to increase supply

Rising natural gas prices force Norwegian fertilizer produce, Yara International, to temporarily cut production of Ammonia and Urea to 45%; Urea-April delivery reached USD1,025 per ton and May delivery is at USD935/ton

ABUK BoD agreed to study the establishment of a project to produce hydrogen and green ammonia, in cooperation with the French energy company "Total"; RAKT might sell an unutilized land plot to ABUK

MFPC reported strong results for 2021. Attributable net income came in at EGP4.791 billion, up 93% on an annual basis on Urea prices and lower financing expenses; 4Q21 bottom line came in at EGP1.272billion, +57% YoY; Stock is trading at a 2022 P/E of 4.28x, EV/EBITDA of 3.55x

KIMA turned profitable in 1H FY21/22, achieving EGP331.23 million, compared to a loss of EGP631.26 million in 1H20/21, in light of the increase in revenues from EGP691.16 million to EGP2.11 billion during the same periods, respectively

ESRS has raised the price of rebars, again, by EGP 1,500/ton (+10% WoW) to EGP 17,000/ton (including VAT)

Steel producers are reporting difficulty in securing raw materials since the Russian-Ukrainian war started since 70-80% of their pellets and scalp needs were secured from Russia; Producers are trying to secure raw material needs from other countries, including Turkey and India

EFIH management guided for 2022 revenue growth of high 40s (compared to our estimate of 40.7% YoY, EGP2.76 billion) and 2022 NPM guidance of mid-high 20s (compared to our estimate of 29.1% YoY, EGP806 million)

EFIH net profit recorded EGP520 million, + 47.5% YoY 4Q21 net profit came in at EGP139 million (+85.7% YoY) Contraction in net profit is attributed to a higher effective tax rate during 2021 of 30.0% (+7.1pps YoY); BoD proposed distributing a DPS of EGP0.10/share (DY of 0.5%);  EFIH is currently trading at 2022f P/E of 39.3x and 30.4x

Banks now have until 14 September 2022 to comply with the new minimum capital requirements required by the 2020 Banking Act (EGP5 bn). 

CBE has highlighted additional exclusions from paying imports value in any of the accepted banking methods, such as imports below USD25k or its equivalent in other currencies

EGBE received approval from FRA regarding its bonus shares distribution from the 2020 bottom-line, translating into 0.0717 bonus shares per share. BOD has approved another round of capital increase financed from the 2021 bottom line translating into 0.0738 bonus shares per share. The bank’s capital will stand at EGP7.6 billion.

HRHO’s arm Corp-Solutions has signed an EGP600 mn sale and leaseback agreement with real estate developer LMD 

CNFN’s factoring arm has received requests for factoring worth EGP250 million; Company aims to record net financing facilities worth EGP1 billion during 20

- Market Overview 
- COMI


- Prepared by: Mayada Amin - CETA, CFTe

Wheat reserves should cover Egypt's needs for 8 months, after accounting for locally sourced quantities; No need for any additional wheat shipments in the short term

The CBE's, newly released, External Position Report for September 2021, revealed that it extended the tenor of two Saudi deposits, worth USD2.3 billion, until October 2026

The government could consider introducing price controls on unsubsidized bread if sellers continue to raise their prices

Global oil prices closed at their highest levels since 2008 after the US and UK announced they would ban the import of all energy imports from Russia; Brent is trading at USD131.31/bbl

EFIH will release 2021 financial results today. We expect net profit to come in at EGP522 million (+48.2% YoY). Revenues are expected to record EGP1.88 bn (+53% YoY); EFIH is currently trading at 2022f P/E of 40.4x and EV/EBITDA of 31.3x

OCDI reported fantastic 4Q21 results, with sales up 81.0% y/y to EGP6.0 billion, bringing FY21 sales up 53.7% y/y to EGP11.4 billion, boosted by the launch of June on the North Coast in 4Q21. 4Q21 net profit increased 88.5% y/y to EGP517.8 million, taking FY21 net profit up 4.9% y/y to EGP860.0 million

EMFD achieved solid FY21 sales of EGP23.2 billion, up 28.9% y/y. Net profit in 4Q21 reached EGP1.3 billion, up 84.4% y/y, bringing FY21 net profit to EGP4.1 billion, up 117.8% y/y. Net cash is at EGP11.5 billion at the end of 4Q21 (97.3% of market cap)

PORT reported growth in FY21 results despite weak 4Q21 figures, with sales in 4Q21 reaching EGP295.0 million, up 21.9% y/y, bringing FY21 sales to EGP1.5 billion, up 19.7% y/y. FY21 net profit before minority to EGP92.9 million, up 2.3x

PHDC Board approved a EGP371.0 million receivables securitization

PHDC acquired a 7.97% stake in Incolease (ICLE) for EGP65.4 million

ACAMD Board approved the offer from El Rawasy for Real Estate Development to co-develop the 60k sqm Zefta land plot; The offer projects project revenue of EGP4.0 billion, with 35.0% going to ACAMD and 65.0% going to El Rawasy

JUFO is to resume operations in the Assiut yogurt factory, which has been closed since 2016, in preparation for Ramadan, when yogurt demand usually triples compared to other months; Management also declared that new products will be launched within a few days

HRHO’s subsidiary Valu, has partnered with the online marketplace Noon to provide installment plans for customers worth EGP500 or more

CNFN has signed a factoring agreement worth EGP100 million with the B2B marketplace Capiter, with the aim of expanding its financing activities

HoldiPharma intends to sign a EGP1.0 bn a financing agreement to finance a development plan for its subsidiaries and accordingly expand exports; HoldiPharma holds stakes in AXPH, CPCI, and ADCI 

- Market Overview


- Prepared by: Mayada Amin - CETA, CFTe

Weekly Commodities Update

Brent futures are trading at USD123.31/bbl and averaged USD92.29/bbl YTD

Diesel-HSFO spreads were up 61% WoW and are at USD569/ton

The Egypt Urea Index increased by 14% WoW and prices are currently at USD835/ton

Steel/Iron Ore spreads hiked by 24% to USD542/ton

LME 3M Fwd Aluminum prices came up 15% at USD3,849/ton

Retail cement prices in Egypt followed the trend this week to range between EGP1,350 -1,400 per ton

Coal FOB Newcastle Australia prices skyrocketed 75% compared to last week recording USD419/ton

Polyethylene (HDPE) prices were up 1% WoW and prices are currently at USD1,370/ton

Polypropylene prices broadly stable at USD1,260/MT

Wheat prices reached a record-breaking USD1,348/bu, higher WoW by 50.1% 

SMP prices rose by 9.0% to reach USD4,481/MT 

Crude palm oil climbed to reach USD1,658/MT, +0.7% WoW

In latest 10-year Treasury bond bids, the Ministry of Finance accepted EGP54.7 million out of EGP500 million originally requested, due to the high requested rates, between 14.5% and 17.5%

Qatari dairy firm Baladna acquired a 5% stake in JUFO; JUFO is trading at a FY22 P/E of 11.3x and and EV/EBITDA of 4.4x

Four consortiums have been listed as qualified for the financial assessment of bids stage for the tender for the transformer stations of the High Dam and Aswan Reservoir (EGP800 million), including Siemens – El-Sewedy

The Ministry of Transport is preparing to disburse EUR150 million in favor of the Arab Contractors – Orascom Construction; . The total value of the construction work in the project is estimated at EUR1.2 billion 

TMGH achieved stellar record FY21 sales of EGP32.4 billion, up 94.8% y/y, boosted by the launch of the Noor project in 2Q21; 4Q21 net profit declined 38.9% y/y to EGP62.9 million as a result of goodwill write-down, taking FY21 net profit to EGP1.8 billion, up 5.4% y/y; Board proposed the distribution of cash dividends of EGP0.17/share, implying a DY of 1.9%

PHDC achieved impressive FY21 sales of EGP17.3 billion, up 35.3% y/y, despite underwhelming 4Q21 sales of EGP4.4 billion, down 19.2% y/y; Net profit in 4Q21 reached EGP188.9 million, down 4.3% y/y taking FY21 net profit to EGP824.3 million, up 15.8% y/y

 EGAL released its budget for FY2022/23 targeting net profit after tax of EGP1,263 million EGP1,231 million in FY2021/22

Inbound travel from the European Union and Britain to Egypt is normal and has not been affected by the Russian-Ukrainian crisis, Occupancy rates in Red Sea hotels have recently fallen to 40%, compared 65% before the crisis

FAIT 4Q21 consolidated net profit pre-minority interest and appropriations recorded EGP1,180 million (+72% q/q, +48% y/y), bringing 2021 bottom line to EGP3.0 billion (+31% y/y). FAIT is currently trading at P/B22 of 0.4x and P/E22 of 2.9x, with ROAE of 15.0%

Instant Payment System in banks for retail customers will start operating on March 22, allowing customers to complete electronic transactions in real-time, on all days of the week

Egyptians can open bank accounts without charge and with no minimum deposit starting today through the end of March as part of the CBE’s financial inclusion strategy

Aspire Capital Holding (ASPI), PIOH's financial services arm, reported a 2021 net profit of EGP578.07 million (-46.7% YoY)

Equinox Pharma and GCC-based institutional investor acquired 6.4% (64.28 million shares) of RMDA’s shares at an average price of EGP2.00/share

- Market Overview 
- COMI
- AMOC
- ABUK
- SKPC
- CCAP
- ESRS



- prepared by: Mayada Amin - CETA, CFTe

Minister of Finance: Soaring global prices could cost the state an additional EGP15 billion for wheat imports in FY2021/22

Minister of Finance: GDP growth target during the current FY2021/22 is 6.7%, while targeting a budget deficit of 6.7% for the current fiscal year

Eight shipping lines have disrupted cargo reservations to and from Russia because of the war on Ukraine, which might affect Egyptian imports and exports

Brent crude surged to USD 129.1/bbl (+9.2%); Feeds into oil refining margins for AMOC and CCAP's ERC

MCRO 2021 net profit came in at EGP148 million (9.5% YoY), after IPO expenses of EGP30.7 million, in addition to higher provisions and interest expense. Normalized net profit recorded EGP178.7 million (+32.2% YoY); MCRO is currently trading at 2022f P/E of 11.1x and EV/EBITDA of 7.5x

Seddik Afifi divested his stake (5.174%) in RMDA at an average price of EGP2.00/share

EAST signed an agreement to provide its workers with optional early retirement; Provisions have already been booked since the beginning of FY21/22; EAST is currently trading at a FY21/22 P/E of 6.2x and an EV/EBITDA of 3.3x

The Industrial Development Authority is expected to submit the strategy for the development of the local automotive industry to President Al-Sisi within a few days, in preparation for its implementation by early April

AUTO decided to cancel the GDR program

 FWRY’s shareholders approved increasing the company’s paid-in capital to EGP1.65 billion distributed on 3.3 billion shares 

RAYA restructured the ownership 3 subsidiaries (Raya Network Power, Raya Networks, and Raya Data Center) to its subsidiary, Raya Systems

CBE revealed that as of 2021 (versus 3 yrs back): e-commerce transactions value recorded EGP30 billion (up from EGP16 billion), transactions value through PoS grew to EGP170 billion (up from EGP110 billion),transactions value through e-wallets surged to EGP268 billion (up from EGP88 billion), number of issued cards stood at 54 million card (compared to 30 million cards)

- Market Overview
- COMI
- ABUK
- EKHO
- HRHO
- MTIE   


- Prepared by: Mayada Amin - CETA, CFTe

Net International Reserves were almost flat in February, at USD40.99 billion compared to USD40.98 in January; Value of the gold component increased

We expect annual urban inflation to jump to around 8% in February up from 7.2% in January, on surging food prices

IMF: Economic consequences of the war in Ukraine are very serious creating an adverse shock to both inflation and economic activity

FAO's benchmark gauge for world food prices went up in February by 24.1% YoY and 3.9% MoM, led by vegetable oils and dairy products

Israel has begun exporting additional natural gas to Egypt through a pipeline traversing Jordan

Minister of Electricity said that electricity prices will not be increased now but the increase will be next July, for the residential segment

GASC has approached the International Islamic Trade Finance Corporation to raise USD700 million in financing to import supply commodities

Local media reported that Fedex Express is planning an EGX listing, without specifying a time horizon

Orascom Construction-Hassan Allam Consortium is about to start different projects in Libya worth EUR3 billion (Al Shorouk)

ESRS reported expectedly solid consolidated results for 4Q21 with attributable net income surging to EGP1,041 million in 4Q21; On the back of hikes in average selling prices that reflected positively on margins; FY2021 attributable earnings surged to EGP3,522 million reversing last year’s losses; ESRS didn’t propose any dividend distributions; ESRS is currently trading at FY21 P/E of 2.2x and FY21 EV/EBITDA of 3.4x

IRAX net attributable profit recorded EGP2,598 million in 4Q21 reversing comparative quarter losses; FY2021 attributable earnings surged to EGP5,813 million reversing last year’s losses; IRAX is trading at FY21 P/E of 1.5x and FY21 EV/EBITDA of 3.1x

Severstal Russian Steel offered Egyptian producers to supply their needs of the necessary raw materials; Disruption of freight due to the war prevents producers from signing any importation contracts from Russia

ETEL net profit came in at EGP2.3 billion in 4Q21 (+75.7% YoY); 2021 net profit came in at EGP8.42 billion, +73.6% YoY; Drivers: solid revenue growth, an increase in net finance income, EGP541mn FX gain, a decline of EGP183 million in impairments, a decline of 14% YoY in net interest expense, attributed to 20% YoY decline in gross debt, a surge of 51.5% in investment income from Vodafone on the back of provisions and taxed reversals of EGP502 million; BoD proposed distributing dividends of EGP1.00/share (DY of 5.2%); Trading at 2022f P/E of 4.7x and EV/Adjusted EBITDA of 2.5x 

Egypt Post launched an e-payment system that enables citizens to pay for their traffic fines, education fees, housing projects, and other postal services

ACAMD received an updated offer to co-develop its 60k sqm Zefta land plot