Al Ahly Pharos

*Key news articles for today*

The International Finance Corporation (IFC) unveiled the list of 11 Egyptian airports slated for development through public-private partnerships (PPP).

China’s Wu’an Xin Feng signed the contract for its USD1.7 bn integrated metal industries complex in the Ain Sokhna industrial zone with the government yesterday. 

The Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) has temporarily halted the acceptance of requests to connect solar power plants to the grid until a regulatory framework for net metering and solar self-consumption is finalized.

The House of Representatives approved a grant from the Japanese government worth JPY500 million (USD3.3 million) to the Ministry of Agriculture.

Local fertilizer player Agro TH plans to establish its second factory in Sadat City in partnership with an Omani investor with an estimated investment of EGP5 bn.

Local home appliances manufacturer Royal Home plans to list 20% of its shares on the EGX within the next 18 months.

Instapay transfer fees come into effect on Tuesday, 1 April. Transfers will be subject to a 0.1% fee, ranging from EGP0.50 and EGP20 per transaction.

ORAS 4Q24 consolidated net income attributable to shareholders decreased 29.2% YoY to USD31.0 million and adjusted net income attributable to shareholders increased 0.4% YoY to USD117.3 million in FY24. ORAS is currently trading at FY25e PE of 4.9x.

JUFO reported 4Q24 attributable net profit of EGP298 million (+108.4% YoY, -69.0% QoQ). FY24 attributable net profit recorded EGP2,735 million (+167.9% YoY), missing our estimates of EGP2,969 million. JUFO is currently trading at FY25f P/E of 8.7x.

TMGH and Alameda Healthcare signed a partnership agreement to build a 200-bed hospital in TMGH’s Madinaty, with investments of EGP5.0 billion.

HELI expects its revenue to reach EGP300.0 billion in ten years.

EGCH obtained an EGP10 billion credit facility, from a consortium of 6 banks, to finance the company’s nitric acid and ammonium nitrate project. The facility is distributed USD93 million in foreign currency and EGP5 billion in local currency.

CIEB Annual General Meeting (AGM) has approved the distribution of cash dividends amounting to EGP3.2 per share, reflecting a payout ratio of 50%. The distribution date is set for April 17, and the record date is April 14.

COMI has announced cash dividends of EGP2.50 per share. The distribution date is set for April 10, with a record date of April 7. 

BTFH announced that the coverage rate for the first phase of the company's capital increase subscription reached 92.11% amounting to 4.95 billion shares. 

ValU plans to issue securitized bonds worth EGP1 billion during the second quarter of this year.

ETEL’s assembly approved distributing cash dividends of EGP1.50/share, implying a DPO of 25.4% and a DY of 4.1%.

Hilton will set up Africa’s first Signia Hotel and Signia Residence in West Cairo’s Skywalk. The 200-key hotel will include build on 5k sqm space.

The Holding Company for Tourism and Hotels is working on adding 3k keys to its portfolio within the coming three years. 

- Market Overview

- SKPC

- CIEB 

- GBCO

- JUFO

- MASR

- Prepared by: Mayada Amin- CETA, CFTe

The Madbouly government has formed new committees to address the effects of Trump’s tariffs — direct and indirect. The committees are tasked with conducting a comprehensive review of Egypt’s customs to adapt to recent global developments and, particularly, the tariffs imposed by some countries in response to US tariffs, a senior government official said. 

US President Donald Trump said auto tariffs will land “in the next few days,” with additional duties on pharma, lumber, and semiconductors set to follow “down the road”.  Trump said many of these levies will take effect on 2 April. Trump also confirmed a new 25% “secondary tariff” on any country purchasing oil or gas from Venezuela.

Egypt aims to initially cut the customs clearance time for goods from eight days to just two — a measure that is expected to take between nine months to a year to be fully implemented. After that, the government aims to cut clearance time to just a few hours. The Finance Ministry aims to collect some EGP 74 bn in customs duties during the current fiscal year, a figure that may grow further with the resolution of disputes and the simplification of procedures, source said.

The International Finance Corporation (IFC) will provide advisory services aimed at expanding private sector participation in Egypt’s airports under an agreement inked with the Madbouly government yesterday, according to a cabinet statement.

The government has requested a re-discussion and deliberation of some articles of the new draft labor law to ensure its compatibility with international standards and achieve greater balance in labor relations. This comes after the House of Representatives initially approved all articles of the law in its plenary session last Sunday.

Khalda Petroleum Company plans to invest USD1.15 billion in drilling, exploration, and development activities during the next fiscal year, 2025-2026.

An Egyptian-Turkish alliance, comprising the Egyptian Company for Trade and Agencies and the Turkish company "Kelpsen", intends to invest an initial USD10 million to establish a factory for water meters and valves.

ARCC reported sturdy 4Q24 financial results with attributable bottom line recording a record EGP492.3 million in 4Q24 (+150% YoY, +55% QoQ), bringing FY24 attributable bottom line to EGP1,160.1 million (+66% YoY). ARCC’s Board of Directors proposed no cash dividend distribution for FY24. ARCC is trading at FY25e P/E of 9.2x.

ELEC reported a significant drop in attributable net income to EGP25.2 million (-91% YoY, -92% QoQ), bringing FY24 attributable net income to EGP1.3 billion (+6% YoY). 

COMI AGM decided to pay cash dividends of EGP2.50/share, which implies a payout ratio of 14% of 2024 net profit post minority, and to increase the issued and paid-in capital from EGP30.43 billion to EGP30.708 billion, as part of the ESOP.

EXPA AGM approves to distribute 3.7:10 bonus shares.

CIRA's BoD approved entering into an interest-free loan agreement convertible into shares in Social Impact Capital Educational Company, with a total amount of SAR15 million, to finance a capital increase in Social Impact Capital Educational Company, bringing CIRA's ownership stake at 61.56% of the company. 

- Market Overview 

- ORAS

- EFIH

- prepared by: Mayada Amin- CETA, CFTe

Gas output dropped 20% y-o-y to 4.3 billion cubic feet per day (bcf/d) in January, marking its lowest monthly level since December 2016.

Dana Gas, one of the key producers in the Nile Delta, plans to launch a USD100 million project to develop production after receiving the rest of its outstanding dues. 

The European Union has agreed to fast-track the approval and disbursement of the second phase of the its macro-financial assistance and budget support program, worth EUR4 billion.

The Suez Canal Economic Zone (SCZone) has launched the first phase of a new digital services platform for investors.

The House gave the initial thumbs up to the entirety of the re-drafted Labor Act, with the bill's final approval by the legislative body penciled in for an upcoming session. 

The Customs Authority is preparing to launch a pilot operation of a new system for inspecting goods based on AI to combat customs evasion at ports, by creating a unified database for the prices of imported goods at all Egyptian ports.

Tarek Sultan, Vice Chairman of Agility, a company specializing in supply chain services, infrastructure, and innovation, said his company intends to invest USD60 million to establish modern customs and logistics facilities in the Suez Canal Economic Zone.

The German Development Bank (KfW Bank) intends to provide financing worth EUR52 million to the Ministry of Electricity to finance clean energy transition projects, sources at the German Embassy said.

ORAS (FV: EGP425.00, OW) announced that its 50-50 joint venture with Técnicas Reunidas has signed an Engineering, Procurement, and Construction (EPC) contract to build the Qurayyah IPP Expansion Project, a large-scale 3 GW combined cycle gas-fired power plant in the Eastern Province in Saudi Arabia. 

The value of projects undertaken by Egyptian contractors in Iraq jumped to USD12 billion, according to the Chairman of the Egyptian Federation for Construction and Building Contractors. 

CLHO (FV: EGP9.00, OW) issued 4Q24 results. 4Q24 attributable net profit amounted to EGP191 million, down 8% QoQ but up 78% YoY. FY24 attributable net profit came in at EGP723 million (+73% YoY). CLHO is currently trading at FY25 multiples of P/E 15.2x and EV/EBITDA of 7.4x.

ADIB AGM approved increasing issued and paid-in capital from EGP6 billion to EGP12 billion, an increase of EGP6 billion through distributing 1:1 bonus shares.

DSCW reported 4Q24 bottom line of EGP80 million (-53.2% YoY, -75.0% QoQ). This brought FY24 bottom-line to EGP901 million (+101.1% YoY).

DSCW BoD approved the establishment of Dice for Ready Made Garments in Morocco for the trade and distribution of ready-made clothing. Also, it proposed shares distribution for FY24 at a rate of half a share for each original share.

Weekly Commodities Update

- Market Overview 

- COMI 

- MTIE

- ETRS

- PHDC

- EMFD

- Prepared by: Mayada Amin- CETA, CFTe

Foreign holdings of public debt have returned to their pre-December levels, reaching approximately USD38 billion, the rise in demand from foreign investors is attributed to declining inflation figures coupled with expectations of an interest rate cut from the CBE in April.

Kuwait is looking to increase its investments in Egypt to USD5.3 billion by the end of the year, equal to a 20% jump in the GCC nation’s investments in Egypt.

Kuwaiti officials informed Prime Minister Madbouly of the renewal of two deposits totaling USD4 billion.

The government is planning to launch a retail bond market in 2025 as part of the government’s efforts to diversify its public debt instruments.

Air Liquide Egypt and China’s United Energy Group (UEG) signed an MoU to develop green ammonia projects using green hydrogen in Egypt. 

The Finance Ministry is looking to amend the property tax law to raise the exemption threshold to EGP4-5 million, up from EGP2 million currently.

Shipping company Hapag-Lloyd’s plans to return to the Suez Canal will remain on ice. Looking ahead, the firm penciled in 2H25 for the gradual resumption of traffic.

MPs will vote on three foreign grant agreements on Tuesday.

Egypt is negotiating with Iraq to resume importing shipments of Iraqi crude oil. 

The UK is looking to boost its investments in infrastructure and aviation in Egypt, in addition to investing in the green energy sector.

HRHO is negotiating with investors to subscribe to its Saudi Arabian Higher Education Fund to gather USD150 million. 

Consolidated Financial Holding reduced its stake in CNFN from 58.58% to 42.01%.

- Market Overview 

- ABUK 

- CLHO

- COMI

- EMFD

- EFIH

- Prepared by: Mayada Amin- CETA, CFTe

*Key news articles for today* 

The state has appointed an advisor to value Banque du Caire, Prime Minister said during his weekly presser yesterday. “The last valuation has become outdated,” Madbouly said, adding that work on the process has begun. The state will then decide on the size of the stake to offer, either to a strategic investor, or through a stake sale on the EGX, he said.

The US Federal Reserve held interest rates steady for the second time at the 4.25%-4.50% range. While economic activity was expanding gradually and unemployment rate lows had steadied, “inflation remains somewhat elevated” and "uncertainty around the economic outlook has increased,” the Fed’s statement said.

The Egyptian Electricity Transmission Company signed an agreement to build a 500-megawatt wind farm in the Gulf of Suez region, in cooperation with Siemens Gamesa Renewable Energy.

Egypt is raising the purchase price of newly produced natural gas from some foreign energy companies operating in the country, aiming to encourage production to meet the needs of the local market, especially with the approach of summer.

Egypt's steel exports to Europe declined by an average of 90% in January, amid talk that the EU will impose an initial 15.6% anti-dumping duty on hot flat steel imports from Egypt starting April 7. 

The Cabinet approved a draft decision to set up a committee to develop a proposal for an early warning system to prevent SMEs from facing financial distress.

Egypt's sugar import bill rose by 22.5% last year to USD890 million, compared to USD727 million in 2023.

HRHO 4Q24 net profit after tax and minority interest recorded EGP945 million (+36% q/q, +17% y/y), bringing FY24 attributable bottom line to EGP4,255 million (+71% y/y).

BTFH received FRA approval to conduct numerous securities brokerage activities online.

FRA granted Fawry MSME Finance, FWRY’s fully owned subsidiary, an Islamic financing license. The new license opens the door for Fawry to offer sharia-compliant financial solutions.

ATQA posted its 4Q24 results, reporting a net loss of EGP118.1 million, down from a net profit of EGP141.3 million in 4Q23 and EGP160.4 million in 3Q24, bringing FY24 net profit to EGP577.8 million (-21% YoY). 

- Market Overview 

- EXPA 

- PHDC

- prepared by: Mayada Amin- CETA, CFTe