Al Ahly Pharos

*Key news articles for today*

Egypt’s fourth loan-review showed that more needs to be done on the structural reform agenda. “Progress with the implementation of the structural reform agenda was mixed, with notable delays on critical reforms related to divestment and leveling the playing field,” the IMF said in a statement after its Executive Board completed the fourth review.

The IMF also approved the Request for an Arrangement Under the Resilience and Sustainability Facility. The USD1.3 bn in funds are set to be directed towards climate-related projects in Egypt, namely ones that pertain to the expansion of renewable energy, emission reduction, water, and combating desertification.

The government is working on a package of incentives for listing on the stock exchange in an effort to stimulate government offerings and encourage private listings on the EGX. Incentives include reduced taxation on first-time listings.

The move to reinstate a 0.15% stamp tax on all EGX transactions as a simpler alternative to the capital gains tax is currently in its final stages before cabinet approval, after which it will be referred to the House. The tax would apply to both resident and non-resident investors.

The government is exploring the possibility of leasing a German LNG regasification vessel, with a delegation of Egyptian experts expected to visit Germany by the end of this month to finalize the terms of the potential agreement, the Oil Ministry said.

The Houthis are once again targeting Israeli-linked vessels crossing the Red Sea, according to the group’s spokesman.

The General Authority for Investment and Free Zones intends to launch new public free zones specializing in the spinning and textile industries, engineering and chemical industries. This is part of the government's strategy to boost productivity and attract more investment, in a move aimed at raising Egyptian exports to USD145 billion by 2030.

OCDI's fully-owned subsidiary, Tabrouk for Development, signed a EGP2.5 billion bridge loan facility to partially finance development costs in the June project on the North Coast.

HRHO completes its advisory services on the IPO of Alpha Data on the Abu Dhabi Securities Exchange with a value of USD163 million. 

- Market Overview 

- MASR

- PHDC

- FWRY

- AMOC

- prepared by: Mayada Amin- CETA, CFTe

Monthly urban headline CPI inflation recorded 1.4% in February 2025 compared with 11.4% in February 2024 and 1.5% in January 2025. On an annual basis, urban headline CPI inflation recorded 12.8% in February 2025 compared with 24.0% in January 2025.

Monthly core CPI inflation, computed by the CBE, recorded 1.6% in February 2025 compared with 13.2% in February 2024 and 1.7% in January 2025. On an annual basis, core CPI inflation recorded 10.0% in February 2025 compared with 22.6% in January 2025.

The IMF Executive Board has completed the fourth review of Egypt’s USD8 bn loan program, allowing for the disbursement of USD1.2 bn, Finance Minister Ahmed Kouchouk said.

The government will triple allocations for economic support in next fiscal year’s budget, including the funds going towards the export subsidy program and the Automotive Industry Development Program, the finance minister said.

The second phase of the tax reforms will be rolled out next year, The Minister of Finance said. The first phase of the reforms was introduced in October and includes a simplified tax system for SMEs, a central clearing system, and measures to integrate the informal economy.

The government is hoping to attract USD12 bn in FDI during the FY 2024-25, the General Authority for Investment and Freezones (GAFI) head Hossam Heiba said.

S&P 500 futures traded around the flatline early Tuesday after concerns that a recession would hit the U.S. economy sparked a broad sell-off on Monday. 

ORHD reported stellar 4Q24 results, with net profit increasing 24.0% y/y and 9.0% q/q to EGP1.3 billion, bringing FY24 net profit up 9.9% y/y to EGP3.1 billion despite the 1Q24 net loss that had resulted from the FX loss driven by the March 2024 EGP devaluation. Given ORHD’s stellar sales performance and strong operations across all revenue segments, we maintain our Overweight recommendation of ORHD based on our FV of EGP34.74/share and reiterate ORHD as one of our top picks.

RMDA issued positive 4Q24 results with net profit after taxes amounted to EGP158 million, exceeding our expected figure of EGP132 million, and up 31% QoQ and 181% YoY. 2024 bottom line came in at EGP402 million that is up by 59% YoY. RMDA is currently trading at FY25 multiples of P/E 10.7x.

EFID BoD approved distributing cash dividends of EGP1.14/share for FY24, to be distributed on two equal installments. This implies a payout ratio of 49% and dividend yield of 4.1%.

Emirates NBD is currently conducting its due diligence of the state-owned lender as the Dubai-listed lender looks to acquire an undisclosed stake in the state-owned bank. 

The government assigned HRHO to lead the IPO of Silo Foods for food industries. 

CCAP has requested 15k feddans for an agricultural and agro-industrial expansion project, focusing on herbs and aromatic plants, according to the Industry Ministry. The company will inspect available land in Sahl Baraka and Abu Zaabal. CCAP also requested the allocation of mining consessions and quarry leases to secure the supply of essential raw materials, especially talc and kaolin. 

Al Organi Group’s ODI to acquire a 26.25% stake in ATQA in a EGP1.9 billion transaction (EGP6/share). The acquisition, subject to regulatory approvals and due diligence, values Ataqa at EGP7.2 billion, 6% lower than current market cap.

Six Egyptian construction companies are evaluating the potential execution of new infrastructure projects in Libya, with an estimated contract value of EGP100 billion. 

- Market Overview 

- TMGH

- MTIE

- FWRY 

- prepared by: Mayada Amin- CETA, CFTe

Egypt has reportedly set a pricing and payment mechanism for securing LNG supply agreements for the summer months.

Chinese firm Di Seta has begun construction work on a USD40 million ready-made garments factory in the Qantara West Industrial Zone.

Egypt's merchandise exports reached USD4.3 billion during January 2025, compared to USD3.3 billion in the same month of 2024, a growth of 30% YoY.

The House of Representatives approved granting workers an annual bonus of no less than 3% of the insured salary within the new draft labor law instead of 7% of the basic salary.

Minister of Finance said that tax revenue jumped 38% YoY in 1H FY2024/25 to EGP913.4 billion.

MASR’s (FV: EGP8.11, OW) net profit in 4Q24 decreased 48.8% y/y and 62.6% q/q to EGP397.6 million, taking FY24 net profit up 36.9% y/y to EGP2.9 billion. The Board of Directors proposed the distribution of cash dividends of EGP0.25/share, implying a payout ratio of 18.3% and dividend yield of 6.0%. The Board also approved purchasing 85.4 million treasury shares. 

EFID reported 4Q24 financial results. Net profit reached EGP407 million (+0.9% YoY, +1.4% QoQ). FY24 bottom line came in flat at EGP1,634 million. EFID is currently trading at FY25 P/E of 7.6x and EV/EBITDA of 5.4x.

MFPC released FY24 financial indicators. Net profit soared by 153% YoY to EGP15.1 billion in FY24. The company attributed the increase to an EGP7.1 billion rise in FX translation differences from the year before in addition to a EGP1.4 billion increase in interest revenue. MFPC is currently trading at 2025f PE of 6.9x and EV/EBITDA of 6.1x.

The FRA gave the nod for EKHO to proceed in its stock dividend distribution to shareholders at 5% of the issued and paid-up capital to reach USD295.81 million, with an increase of USD14.09 million distributed over 56.34 million shares at par value of USD0.25/share (1:20 ratio). 

- Market Overview 

- COMI

- PHDC

- MFPC

- MASR

- Prepared by: Mayada Amin- CETA, CFTe

The IMF is set to sign off on Egypt’s fourth review of its USD8 billion loan program when the Fund’s Executive Board meets tomorrow, giving the final greenlight for a USD1.2 billion tranche. A further USD1.3 billion could also be on the table, with the Fund set to discuss approving the funds under the Resilience and Sustainability Facility. 

France, Germany, Italy, and the UK voiced their support for Egypt’s USD53 billion, five-year plan to reconstruct Gaza, their foreign ministries said in a joint statement.

The government will release the conditions booklet for its Ministries Square privatization offerings to private sector suitors in the next two months.

French concessions and construction company Vinci has expressed its interest in managing and operating Egyptian airports as part of the government’s airport privatization push.

The Egyptian-Moroccan Business Council has launched an interactive digital platform to connect investors from the two countries and boost cross-border trade. 

Shell and its partners withdrew from their two Egyptian Red Sea exploration blocks, which they were awarded in 2019.

Three Romanian firms want a piece of the 13 oil and gas exploration blocks across the Mediterranean and Gulf of Suez the Oil Ministry is offering to investors.

Agiba, a JV between energy giant Eni subsidiary IEOC and the Egyptian General Petroleum Corporation (EGPC), has successfully expedited the development of the Iris field in the Western Desert

BP finished drilling at the El Fayoum-5 gas well in its North Alexandria Offshore Concession.

Government sources revealed preparations for the electricity interconnection project between Egypt and Greece before 2H25 end, targeting to obtain a grant and soft financing worth EUR1 billion.

PHDC (FV: EGP8.97, OW) achieved stellar FY24 results. Net profit in 4Q24 rose 69.6% y/y and 39.1% q/q to EGP902.3 million, taking FY24 net profit up 105.8% y/y to EGP3.3 billion. 

SWDY will build a USD500 million subsea cable factory in the newly-announced zone in Dameitta Port. 

ESRS repurchased, in the second phase, EGP1.0 billion worth of shares from shareholders opposed to the group’s voluntary EGX delisting. 

HRHO’s non-bank financial services arm EFG Finance is offloading its 51% stake in PayTabs Egypt for an undisclosed sum.

According to AMIC, auto sales in January fell 22% MoM to 10.1k units, down from December’s high of 13k units and increased by 61.4% YoY.

- Market Overview 

- ADIB 

- CIEB

- TMGH

- ABUK 

- ORWE

- prepared by: Mayada Amin- CETA, CFTe

The Prime Minister announced that an oil and gas field was discovered in the King Mariout area, called Fayoum 5.

Egypt’s liquefied in facilities will start receiving 400 million cubic feet per day (mcf/d) from Cyprus’ Cronos gas field starting mid-2027 and another 500 mcf\d of gas from the country’s Aphrodite field by 2030, a senior government official said.

Cabinet approved a draft decision put forth by Prime Minister Moustafa Madbouly defining the responsibilities of the Industry Ministry and its affiliated entities.

Cabinet approved the establishment of a green industrial zone for petrochemical and green hydrogen production in the Gulf of Suez’s Ras Shukeir. It also gave an initial nod for the Transport Ministry to proceed with contracts for a green hydrogen and green ammonia project in Ras Shukeir in partnership with a consortium of international companies, the Red Sea Ports Authority, and the New and Renewable Energy Authority.

The Finance Ministry allocated EGP1 billion in the current fiscal year’s budget to fund the Automotive Industry Development Program (AIDP) and attract investments in car manufacturing.

Saudi Arabia’s Cabinet greenlit the Egypt-Saudi Agreement on Promotion and Mutual Protection of Investments that is expected to help protect Saudi investors as they ramp up investment in Egypt. 

Planning and International Cooperation Minister Rania Al Mashat said that the government expects growth to accelerate to 4.5% in FY2025-26, up from a 4.0% projection for FY2024-25.

The Financial Regulatory Authority bumped up the limit on microinsurance coverage to EGP312.5k from EGP250k in a bid to safeguard low-income individuals and bolster their ability to invest in small businesses. 

The Environment and Finance Ministries are working to boost investments in waste-to-energy (WtE) projects by amending laws regulating public contracts and increasing the feed-in tariff rate.

The number of factories in the Suez Canal Economic Zone (SCZone) has doubled to 130 over the past three years, with another 120 under construction.

DOMT reported 4Q24 bottom line of EGP143.3 million (+41.1% YoY, -14.1% QoQ). This brought FY24 bottom line to EGP501 million (+10.3% YoY). DOMT’s BoD proposed cash dividend distribution of EGP0.85/share for FY24, implying payout ratio of 47.9% and dividend yield of 3.1%. DOMT is currently trading at FY25 P/E of 9.0x.

SWDY will deliver 50% of the engineering works and supplies needed for the EUR700 million combined cycle power plant it is building in Hungary.

- Market Overview 

- ADIB

- CIEB

- EGAL

- ORWE

- ETEL

- Prepared by: Mayada Amin-CETA, CFTe