Undisclosed foreign institutions have acquired a majority stake in Global Corp for Financial Services, in a transaction worth EGP 914.7 million. Transaction at 9x P/E and 2.6x P/B.  Implications on the valuation for CICH, GB Capital and ATLC means FV of EGP8.91, EGP 10.90, and EGP10.45, respectively.

PHAR topped other pharma players for market share in volumes sold during 1Q22, to record 52.8 million units sold (+39% YoY, a market share of 8.7%). We expect PHAR to record 1Q22 net income of EGP183 mn (+3% YoY, +11% QoQ). PHAR is currently trading at 2022f P/E of 5.2x and EV/EBITDA of 4.1x.

Egyptian Drug Authority addressed the pharmaceutical companies to prepare a list of the drugs that need re-pricing, amid an increase in raw materials and production costs coming from a higher custom exchange rate (that was revised up to EGP17 from EGP16).

EMFD plans to open the Address Marassi Marina Hotel in 2023.

According to Colliers International, hotel occupancy rates in Cairo, Hurghada, and Sharm El Sheikh respectively grew by 106% y/y, 84% y/y, and 46% y/y in 1Q22.

EGAL reported strong 3Q21/22 net profit after tax for the quarter recorded EGP874 million. EGAL is currently trading at FY21/22e P/E of 3.9x and EV/EBITDA of 2.2x.

ABUKannounced the EGP1.00/share record date of 09/05/2022 and the distribution date of 12/05/2022. The dividend yield is 4.02%. The company also declared an amendment in its BoD members, including Amr Mehanna and Ahmed El Hamy to be the new representatives of Alpha Oryx (ADQ subsidiary).

Inflation figures for April will be released by CAPMAS later today. We expect annual urban inflation to reach 11.4% in April up from 10.5% in March on surging food prices.

Weekly Commodity Update, WoW%

Brent, USD/bbl | 105 | 2%
Diesel-HSFO Spread, USD/ton | 529 | -5%
Egypt Urea, USD/ton | 1,130 | 0%
Polyethylene, USD/ton | 1,530 | -1%
Polypropylene, USD/ton | 1,305 | -1.9%
Steel/Iron Ore Spreads, USD/ton | 578 | -1%
Aluminum Cash Price, USD/ton | 2,810 | -7%
Egypt Retail Cement, EGP/ton | 1,250 | -2%
Steam Coal, USD/ton | 379 | 16%
Crude Palm Oil, USD/MT | 1,537 | 2.0%
SMP, USD/MT | 4,130 | -6.3%