PHDC achieved solid FY21 sales despite underwhelming 4Q21 sales. 4Q21 sales reached EGP4.4 billion, down 19.0% y/y and down 14.1% q/q, bringing FY21 sales to a company record high of EGP17.3 billion, up 35.4% y/y. We forecast FY22 sales of EGP18.2 billion in our EGP3.33/share valuation.
HELI reported strong 4Q21 results, with net profit amounting to EGP91.3 million, compared to net loss of EGP43.3 million in 4Q20. Growth in revenue and profitability levels was supported by HELI’s 31k sqm land plot sale for EGP108.2 million in New Heliopolis to ZMID in December 2021. We expect revenue to further grow in FY22 in light of the expected upcoming 270 feddan land sale in New Heliopolis.
EGAL reported positive consolidated results for 2Q21/22 with attributable net income surging to EGP458 million reversing last year losses of EGP190 million, and +67% QoQ. EGAL is currently trading at FY21/22e P/E of 7.1x and EV/EBITDA of 5.4x.
SKPC has signed a Memorandum of Understanding (MoU) with Nigeria’s Rungas Group to provide technical support through all phases of the project, in return for being a minority stakeholder in the new complex.
PACH released results foe 2QFY21/22. Bottom line came in at a net loss of EGP14.8 million. PACH results were negatively impacted by higher raw material costs, which are directly correlated to oil prices, when the volume or prices barely grew.
EAST reports stable 2Q21/22 bottom-line of EGP1,323 mn for the quarter, -17.2% QoQ, -3.8% YoY. Despite sales stability, the key reason for the drop in bottom line was the provisions made for early retirement fund. EAST is currently trading at FY21/22 P/E of 5.6x and an EV/EBITDA of 2.9x.
Finance Minister noted that the government intends to provide financial incentives to encourage citizens to buy locally manufactured cars. The government intends to allocate EGP7.1 billion for the presidential initiative to replace obsolete vehicles with new natural gas operated ones.
Spanish engineering firm EOSOL Group will acquire a 50% stake in an engineering and construction subsidiary of BINV’s Giza Systems, at an undisclosed value.
CNFN has entered into a strategic partnership with Wasla e-commerce application, which includes injecting investments in phases totaling USD9 million.
Financial Regulatory Authority (FRA) could soon issue licenses for green and Islamic microfinance products.
CBE Deputy Governor Rami Aboul Naga reflected confidence in Egypt’s macroeconomic outlook. Growth is expected to reach 6.0-6.5% over next two fiscal years. Any pressure points we are witnessing, including inflation rise, CA deficit, or banks’ NFL are not going to last, and are related to temporary global developments.
The CBE is standing firm on its decision to require letters of credit for importers.
Minister of Planning expects economic growth rate to exceed 6% during 1HFY2021/22.
Unemployment rate in 4Q2021 recorded 7.4% down from 7.5% in 3Q2021 and up from 7.2% in 4Q2020. The main reason behind the uptick on annual basis is the decrease in labor force.
Chairman of Suez Canal Authority expects a 15% YoY increase in Suez Canal revenues in February, up from USD474 mn.
The Suez Canal Authority (SCA) is considering selling 20% stakes in two or three of its companies on the EGX
Israeli Energy and Water Minister Karine Elharrar pledged to increase Israel’s natural gas exports to Egypt by up to 50% by the end of February.
Egypt has signed a fresh USD 1.5 bn financing agreement with the International Islamic Trade Finance Corporation (ITFC) to fund imports of petroleum and basic commodities.
Dragon Oil has discovered a 100-mn-barrel oil field in the Gulf of Suez concessions it acquired from BP in 2020.
Amanat is still looking at potential healthcare and education acquisitions in Egypt, Saudi Arabia, and the UAE.
