*Key news articles for today*

IMF is optimistic about Egypt’s privatization program.

OPEC+ doesn’t plan to up production to cover the 500k-barrel-per-day production cut Moscow is implementing in retaliation for Western sanctions.

LNG production in 2023 is expected to stay flat at around 7.5 million tons, in line with 2022. Oil Minister added that maximum capacity for LNG exports could reach 12 million tons per annum by 2025.

We upgrade our FV for JUFO to EGP14.00/share. The upgrade is based upon: resilient market share across segments and healthy demand despite inflationary pressures, planned prices increase, and diversified product portfolio, especially in the dairy line). We expect JUFO’s revenues to grow with a 5yr CAGR of 20%. Net profit is expected to grow with a CAGR of 28.4%, supported by declining expenses/sales percentages and declining debt levels. Net income for 2023 is expected to record EGP959 mn (+46.5% YoY). JUFO is trading at FY2023 P/E of 10.3x and an EV/EBITDA of 5.7x.

We upgrade our FV for EAST to EGP24.72/share, our upgrade is backed by (relatively cheap inventory of raw materials, anticipated prices increase, and costs cutting initiatives). Revenues are expected to grow at a 5yr CAGR of 12%. Attributable net profit is expected to grow at a CAGR of 13% throughout our forecast period. FY22/23 net attributable profit is expected to reach EGP4,402 mn during FY22/23. EAST is currently trading at a FY22/23 P/E of 8.0x and an EV/EBITDA of 4.3x

Egyptian Chemical Industries -Kima reported net profit after taxes recorded EGP133 million (-36% YoY, -72% QoQ) 2Q22/23. Net profit after tax recorded EGP604 million (+82% YoY) in 1H22/23. EGCH is trading at FY23 P/E 9.7x and EV/EBITDA of 7.6x.

PACH’s bidders are still holding on their offers despite the news that PACH shall list additional part of its shares in the EGX.

The Egyptian government plans to offer 20% of its owned Helwan Fertilizers in its new IPO program.

Emirati firm Dana Gas wants to invest USD100 million in Egypt's oil and gas sector over the next two years.

Oil and gas giants Chevron, Shell, and Apache, and IBM signed agreements on lower carbon projects, crude exports, and digital transformation with the Oil Ministry and affiliated firms.

The Parliament greenlit seven bills that will allow the Oil Minister to contract companies for oil and gas explorations in the Mediterranean and the Western Desert.

CSAG released outstanding 2Q22/23 financial results. Bottom line came it at EGP223 million in 2Q22/23 (+597.6% YoY, +236.0% QoQ); this jump is mainly driven by the investment income of Portsaid Container & Cargo Handling Company and Damietta Container & Cargo Handling Company. 

COMI is seeking regulatory approval to issue financial instruments worth up to USD1 bn to finance the bank’s expansion. Moreover, the bank’s BOD has decided to begin the liquidation process for its fintech-focused VC arm C-Ventures this year.         

The National Authority for Tunnels of the Ministry of Transportation plans to pay EGP5 billion to construction companies executing the high-speed train in the coming few days.

MPs approved EUR250 mn loan from the French Development Agency (AFD) to upgrade the Allexandria-Abu Qir metro line.

The number of broadband internet subscribers stood at 11 mn in December 2022 (+10% YoY). Mobile internet subscribers rose to 71.5 mn in 2022 (+9% YoY).