Al Ahly Pharos

Market Overview 
PHDC
DSCW
ORHD
ACGC


prepared by: Mayada Amin - CETA. CFTe

Hassan Allam Holding and ADP France have submitted a joint proposal to manage and operate Egyptian airports.

UAE-based EV infrastructure company Zero Carbon is currently undertaking feasibility studies ahead of a launch in the Egyptian market.

Egypt is planning to carry on importing liquefied natural gas until the country closes the gap between domestic production and consumption in either 2029 or 2030.

MPs are expected to give their final approval to a government-drafted cash-based subsidies bill aimed at supporting citizens living under the poverty line.

MPs are also set to decide on five draft agreements authorizing the Oil Ministry to partner with foreign companies for oil and gas exploration.

International financial institutions invested nearly USD890 million in Egypt’s private sector during November, with climate finance, SMEs, sustainable tourism, and renewable energy projects.

The General Authority for Investment and Freezones (GAFI) is working with the World Bank and relevant ministries to develop a national strategy for foreign direct investment from 2025-30, with the complete strategy to be announced in “the coming months”.

The Central Bank sold EGP60.4 billion worth of three-month t-bills with an average yield of 31.20%, up 0.28 percentage points from its last auction and surpassing the EGP40 billion target.

UAE company Green Coast aims to pump investments worth USD50 million into the Egyptian market over the next three years.

Finance Minister said that EGP10 billion due to pharmaceutical companies will be provided before the end of this year.

The Central Bank of Egypt will issue today one-year treasury bills denominated in foreign currency, worth USD900 million.

Egypt is looking forward to increasing the volume of German investments by 20% during the next year, to reach the range of USD3.6 billion.

We raised our FV for EFIC from EGP89.00/share to EGP165.91/share and maintain our Overweight recommendation of the stock. EFIC is currently trading at a 2025f PE of 4.7x and EV/EBITDA of 4.0x.

Egypt Gas announced signing the shareholder agreement to establish a company for producing polyethylene pipes with a total capital of EGP340 million. The Swiss company, George Fisher, will hold 74% of the new company, Egypt Gas will hold 25%, and the Emirati Corys company will hold the remaining 1%.

HELI (FV: EGP18.84, OW) shareholders voted to postpone the capital increase.

MASR (FV: EGP8.11, OW) signed an MoU with CCAP subsidiary, ASEC Automation, to construct the second phase of infrastructure and road networks in Sarai, with investments exceeding EGP580.0 million.

CIRA reported 4Q24 financial results. Bottom line recorded loss of EGP374 million in 4Q23/24. This brought FY23/24 net profit to EGP35.6 million, a decline of 71% YoY. CIRA is currently trading at FY24/25f P/E of 25.2x and EV/EBITDA of 7.6x.

DSCW reported 3Q24 results, showing net profit of EGP319 million (+105.1% YoY, -12.9% QoQ). This brought 9M24 net profit to EGP803 million, a growth of 1.9x YoY. DSCW is currently trading at 2025f P/E of 3.2x and EV/EBITDA of 3.6x.

OFH reported 3Q24 net loss of EGP1.5 million compared to net profit of EGP26.4 million in 2Q24 and net loss of EGP0.9 million in 3Q23, leading to a 9M24 net income of EGP2.4 million (-96% y/y).

Banque du Caire recorded a net profit during 9M24 of EGP8.6 billion (+90.2% y/y). 

The National Bank of Egypt recorded a net profit of EGP70.6 billion during 1H24 (+185% y/y).

Weekly Commodities Update

- Market Overview 
- FWRY
- GBCO
- HELI
- EAST
- ADIB



- prepared by: Mayada Amin - CETA, CFTe

German companies are mulling several investments in Egypt, including:

• A EUR 1 billion direct reduced iron factory.
• A EUR 30 million flame-resistant material factory.
• A EUR 5 million first phase of a bicycle parts factory. 
• Auto parts factory in Egypt.

China Glass Holding subsidiary CNG Egypt New Energy Glass kicked off construction work on a USD300 million glass factory.

The ro-ro shipping line connecting Damietta Port with Italy’s Port kicked off operations on Thursday with its first shipment setting sail. 

Net foreign assets in the Egyptian banking system fell to USD9.2 billion by the end of October, down from USD10.31 billion in September.

The Cabinet approved the creation of a desert land development chamber under the Federation of Egyptian Industries. 

MPs are set to discuss and vote on a draft cash-based subsidies bill today that aims to give cash-based subsidies to citizens under the poverty line without access to social insurance.

The CBE sold EGP47.0 billion worth of the bills, surpassing its EGP35.0 billion target, at 30.86%, 0.27% higher than their last auction. 

Minister of Finance announced that Egypt is set to issue a sovereign sukuk denominated local currency. The issuance is scheduled for the first quarter of 2025.

Prime Minister said that the government will not repeat previous mistaken policies of keeping the exchange rate static on the assumption that a fixed rate demonstrates stability. 

The Supreme Council for Investment is preparing to issue new decisions aimed at empowering the private sector in strategic projects that the government seeks to expand during the coming period. 

Egypt has reopened fish exports to the EU after a three-year freeze.

We maintain our overweight recommendation of EKHO at a downgraded FV of USD1.19/share. Despite the outstanding risks represented in further currency depreciation and downward pressure on global prices or lag in local repricing, EKHO is exerting efforts to withstand such risks. EKHO is currently trading at a FY25f PE of 5.0x and EV/EBITDA of 3.7x.

EFIC released 3Q24 consolidated financial results. Net income grew 569% YoY (+49% QoQ) to EGP535 million, bringing 9M24 net income to EGP1.3 billion (+157% YoY). EFIC is currently trading at a 2025f PE of 7.3x and EV/EBITDA of 4.7x.

CANA has exited from investments in four entities worth EGP142 million.The total value of the bank's investment portfolio in September 2024 amounted to about EGP2.8 billion, compared to about EGP1.9 billion at the end of 2023.

HRHO’s commercial bank Bank NXT partnered with global payment solutions firm Mindgate Solutions to launch a new digital platform for corporate clients.

CICH and Compass received FRA approval to launch the C3 Capital Fund targeting EGP3 billion. 

HRHO has finished its role in advising Maarif Education on its takeover of Ibn Khaldoun Education. 

MNOs are set to launch eSIM cards before the end of 2024. 

- Market Overview 
- COMI
- FWRY 
- ORHD
- ISPH



prepared by: Mayada Amin-CETA, CFTe

A “very important” Qatari real estate project on the North Coast is in the works, Prime Minister Mostafa Madbouly said. The Gulf nation is also looking into investments into the North Coast’s tourism and hospitality sectors, according to Madbouly, who added that they will soon present Qatar with a list of relevant investments that may be of interest in Greater Cairo and the new capital.

The government has temporarily suspended the local cotton trading system on the back of pricing issues that have crippled the industry this season, sector sources said. The crisis stems from guaranteed prices for farmers set by the government that significantly exceed the crop’s current global market value, making it difficult to trade locally or internationally.

Passenger car imports were up 43.3% y-o-y in 8M 2024 toUSD 1.5 bn, according to data released by state statistics agency Capmas.

A Russian trade mission, featuring representatives from 14 companies, will visit Egypt on 4-5 December, a source at the Russian Export Center said. The mission will include representatives from construction, technology, and urban development companies who will conduct meetings with local players.

The CBE intends to issue USD treasury bills ranging between USD900 million and USD1 billion next week, sources said.

We conducted a preliminary analysis of the United Bank IPO to evaluate how its pricing compares to other listed banks. The private offering was covered 6x and the final offering price was set at EGP13.85 per share which values the bank at EGP15.24 billion.  We believe the bank is being offered at fair multiples, without any investor discount or potential for significant upside in the near term, compared to the current sector distressed multiples. 

A recent report from Fitch Solutions predicted that the banking sector would continue to deliver a strong performance until 2025. 

BM consumer finance firm, Sohoula, aims for a second securitization bond issuance deal next year of EGP1 billion, after completing the first issuance amounting to EGP478 million to reach the full integrated program aim of a total amount of EGP3.5 billion.

The Madbouly government has reached an agreement with Norwegian renewables developer Scatec partially pay for the electricity purchased under the 25-year power purchase agreement inked with the Egyptian Electricity Transmission Company for its planned 1 GW solar and 100-200 MWh battery storage hybrid project in local currency. We note that the project should generate electricity for EGAL’s industrial complex in Nagaa Hammadi.

Local firm Treegas has signed a MoU with Czech company HPC that will see the firms establish a factory to localize the manufacturing and filling of fiberglass LPG cylinders in the Sokhna Industrial Zone, with planned investments of EUR10 million split over two phases. 

The government has launched its National Strategy for the Localization of Vaccine Manufacturing, according to a statement from the Health Ministry. The strategy will involve long term contracts to secure a stable market for local vaccine manufacturers.

Market Overview 

*Key news articles for today*

The government is planning to issue its first EGP-denominated sovereign sukuk in the domestic market in the next fiscal year.

The government is planning to localize 50% of all vaccine production by 2030. There will then be efforts to increase this to 75% by 2035 and full self-sufficiency by 2040.

The government has allocated a total of EGP10 billion to settle a significant portion of debts owed to pharma and medical supplies companies, to be paid over the next three weeks.

Egypt is looking to raise the industrial sector’s contribution to the country’s total GDP to 20-30% from its current 14%. Also the government is planning to up the local component ratio in the industrial sector to 70-80%, up from no more than 40-50% at the moment.

The CBE sold EGP443 million worth of 3-year, fixed-rate, EGP-denominated treasury bonds in Monday’s auction at a weighted average yield of 24.1%.

The Supreme Committee for Partnership Affairs decided to put forward 12 projects in water treatment, sewage, and electricity networks, to be implemented in partnership with the private sector.

The Ministry of Petroleum continues to secure Egypt’s needs for natural gas during the summer months by continuing to import LNG via gasification ships to secure the equivalent of 1 bcf per day throughout the summer period.

We raised our FV of ORAS to EGP425.00/share (USD8.50/share), up from the previous EGP344.18/share (USD7.38/share), implying an upside potential of 43% while maintaining our Overweight recommendation. Our updated valuation model factors in the preliminary estimate of impact of the development of the mega project, Ras El-Hekma, rolling over the model and updating our macro assumptions, and assuming a 50% of the estimated maximum claim of USD311 million that could be imposed on ORAS in Sidra’s arbitration case. ORAS is currently trading at FY25e PE of 5.1x. 

ESRS stated that the transformer of meltshop No. 2 of Ezz Flat Steel Company (EFS), Suez, a subsidiary, suffered a major malfunction. The repair period is expected to extend for approximately 9 months. This should have a negative impact on ESRS where its production levels will return back to pre-2023 levels to around 5.4 million tons of finished products, down from the current 7.0 million tons. Negotiations should be taking place with the insurance company regarding the amount of compensation. We expect FY25 revenue and bottom line to drop by 10-12% below our estimates for the year as a result of the meltshop suspension.

SVCE reported 9M24 losses amounting to EGP237.5 million, compared to 9M23 net loss of EGP63.1 million, despite an 86% YoY spike in revenue to EGP1.1 billion.

United Bank retail placement is set to begin later today and run until 3 December. 

EFIH and Africa-focused digital solutions company Cassava Technologies signed an agreement that will see the two firms identify areas for collaboration and joint expansion in Egypt and Africa.

MFPC targets finalizing two green hydrogen projects and expanding the company's capacity of urea in 2027 with total investments worth USD400 million. 

Flydubai will start offering daily direct flights between Dubai International Airport and Alamein International Airport starting next summer. The route will operate between 21 June and 7 September.

Hotels in Luxor raised prices by 33-50% y/y in November 2024. Occupancy rate in Luxor in November 2024 increased to 80% from 65% in November 2023.

Al Mansour Automotive is partnering with China’s state-owned SAIC and another unnamed partner to establish a factory for assembling both traditional and electric cars for SAIC-owned brand MG in Egypt. The factory is expected to begin production within the next two years.

Market Overview 
COMI
ADIB
EKHOA
ETEL
EFIH



Prepared by: Mayada Amin- CETA , CFTe

The government is mulling a permanent exemption for factories from property taxes and either raising the residential tax exemption cap or doing away with it altogether for first homes, Deputy Finance Minister said.

Remittances from Egyptians working abroad more than doubled YoY in September to hit USD2.7 bn.

The CBE sold EGP75.2 bn worth of t-bills with record average yields of 30.9% for three-month bills, 30.6% for six-month bills, 28.4% for nine-month bills, and 26.2% for year-long bills.

Tax revenues grew by 41% during the period July through October, compared to the same period of the previous year, the head of the Egyptian Tax Authority said.

A consortium of Chinese investors and the private and government sectors in Egypt seek to establish an integrated agricultural complex on an area of one million acres in the New Valley Governorate, with investments estimated at about USD7 billion.

EFID reported 3Q24 financials with attributable net profit recording EGP362 million in 3Q24 (-16.0% YoY, +13.7% QoQ), bringing 9M bottom line to EGP1,120 million (-6.0% YoY). EFID is currently trading at 2025f P/E of 9.4x and EV/EBITD of 6.9x.

United Bank’s private placement that wrapped yesterday was 6x oversubscribed. Retail investors will soon get their chance to buy up a piece of United Bank in the offering’s retail placement set to begin tomorrow and run until 3 December. 

CICH's consumer finance firm, Sohoula, announces the completion of its first securitization bond issuance deal for BM Lease amounting to EGP478 million.

Saudi Arabia’s National Security Services Company (SAFE) will provide EFIH with comprehensive and secure security system for digital payments under an MoU inked between two sides during Cairo ICT. 

Polish renewables player ‘Hynfra’ announced its plans to set up a USD10.6 billion green ammonia facility in Egypt with production capacity of 1 million tons per year, according to a statement from the General Authority for Investment (GAFI). The first phase of the project is set to be up and running by 2030, which will cost some USD1.6 billion and have a production capacity of 100k tons of green ammonia per year. 

UK oil and gas giant ‘Shell’ will boost its natural gas production by 170 million cubic feet per day by the end of December, according to Asharq Business.