State grain buyer GASC canceled its wheat tender yesterday on the back of high prices

Ministry of Supply said that the government is in no rush to raise subsidized bread prices

Egypt is close to issuing the first sovereign Sukuk; with an estimated value of USD1 billion

Suez Canal is to charge higher fees starting today (5%-10%)

Minister of Finance plans to offer 10 government companies on the EGX is still in place

TMGH achieved stellar record FY21 sales of EGP32.4 billion, up 95.2% y/y, boosted by the launch of the Noor project in 2Q21. 4Q21 sales reached EGP4.9 billion, up 8.9% y/y

MNHD reported weak FY21 results, with sales declining 57.9% y/y to EGP3.0 billion due to FY20 sales having included EGP2.3 billion in land sales; Net profit in 4Q21 reached EGP32.8 million, down 91.1% y/y; FY21 net profit hit EGP282.8 million, down 71.8% y/y

AMER received FRA approval to decrease capital from EGP1.0 billion to EGP902.8 million through retiring treasury shares

UNIT Board approved a capital decrease from EGP343.1 million to EGP342.7 million through retiring treasury shares

Tourism industry sources expect hotel occupancy rates to decline as a result of the Russian-Ukrainian conflict, with occupancy rates so far declining to 60% in Hurghada and to under 50% in Sharm El Sheikh this week

Bankers in the market expect that First Abu Dhabi Bank would raise its offer to acquire a controlling stake in HRHO

HDBK 4Q21 standalone bottom line recorded EGP396 million (+5% y/y), bringing FY21 bottom line to EGP 1,830 million (+2% y/y); Limited annual growth is caused by provisions; BoD approved a DPS of EGP2.50/share with a DPS of 6.2 and bonus share distribution of 2.5 shares for each outstanding share; HDBK is currently trading at 3.4x P/E22 and 0.5x P/B22 with ROAE of 17%

EFIC released strong 4Q21/FY2021 results; Net profit amounted to EGP135 million, higher 44% QoQ and 2.05x YoY; FY 2021 Net profit came in at EGP304 million, higher 1.4x on a yearly basis; EFIC is trading at 2022 P/E 6.7x and EV/EBITDA of 2.74x

ALCN net income increased by 15% YoY during 7M FY21/22 to reach EGP857 million. Revenues increased by 2% YoY to reach EGP1.3 billion during 7M FY21/22, driven by the increase in prices, since the number of containers for the period dropped by 5% YoY; ALCN is trading at 2022 P/E of 7.5x and Ev/EBITDA of 5.9x

[Correction] AUTO noted that the two factories for two-wheelers and tires that were planned to be financed by the capital increase of 2015 are currently on hold and that the 2015 capital increase proceeds were currently being used to finance working capital needs

Weekly Commodities Update:

Brent futures are trading at USD100.99/bbl

The Egypt Urea Index increased by 32% WoW to USD730/ton

Polyethylene (HDPE) prices were unchanged WoW at USD1,360/ton

Diesel-HSFO spreads were up 7% WoW and are at USD354/ton (CCAP)

Polypropylene prices at USD1,265/MT

Steel/Iron Ore spreads were unchanged at USD436/ton

Aluminum prices came up 3% at USD3,358/ton

Retail cement prices in Egypt exceeded EGP1,300/ton mark in some brands

Thermal coal prices were unchanged WoW recording USD219/ton

Crude palm oil climbed to reach USD1,646/MT, +16% WoW

SMP prices rose by 6.0% to reach USD4,295/MT