Pitch| ETEL’s Relative Valuation and Vodafone Stake Sale Show Massive Upside Potential. ETEL is significantly undervalued compared to emerging peers. The relative value ranges from EGP48.05-81.93 per share. DCF FV is EGP 34. A significant improvement in financial performance on reaping infrastructure spending fruits along with Improved cash flows, higher margins, and lower CAPEX. Key Triggers: Upward Repricing Potential, Orange Roaming Agreement, and Tower Monetization. Market price fails to reflect Vodafone Egypt’s Implied Valuation, Adjusted for FX Rate, which implies ETEL total value of EGP40.08 to EGP42.60 per share. Sale of VFE stake proceeds for ETEL to range from EGP7.22-15.79 per share (DY of 29.5-64.5%), which might be used for deleveraging and dividends.

The impact of commodities prices changes during 2Q23 on listed stocks as follows:

-Positive impact on ESRS, IRAX, ARCC, MSQE, MBSC, ORWE, and SUGR

-Neutral impact on EGAL, SWDY, SKPC, EKHO, CCAP, and POUL

-Negative impact on AMOC, ABUK, MFPC, EGCH, MICH, JUFO, DOMT, OLFI, EFID, and AUTO

The Madbouly government is on Tuesday expected to hold a press conference at which it will announce the completion of a number of asset sales as part of the state privatization program.

The House of Representatives yesterday gave preliminary approval to amendments for the 2017 Investment Law that lawmakers hope will help attract more foreign direct investment.

Fitch Solutions expects tourism revenues in Egypt to rise from USD14.4 billion by the end of 2023 to USD17.4 billion in 2027.

A Chinese business delegation from Jilin province met with Suez Canal Economic Zone (SCZone) representatives to explore investment prospects, the SCZone said yesterday.

The International Investment Guarantee Agency (MIGA) of the World Bank is considering issuing a USD100 million guarantee to cover trade financing for the benefit of the National Bank of Egypt and Banque Misr. 

CLHO reported solid 1Q23 with net attributable profit of EGP95 million in 1Q23 (-1.4% YoY, +20.0% QoQ), in line with our estimate of EGP106 million. Strong base effect due to covid-related revenues. CLHO is currently trading at 2023f P/E of 13.9x and EV/EBITDA of 7.2x. 

Abdelgawad’s family shares in ISPH were blocked. This is old news, where shares have been already blocked as of 4Q22. This has no impact on ISPH’s operations and financial performance.

The Trade and Industry Ministry has approved extending anti-dumping duties on reinforced steel imports from China, Turkey, and Ukraine for another four years, starting June 1st 2023.

EGX canceled last session's trades on TAQA's shares, keeping only the block trade and will give the company a second debut today. 

Pakinam Kafafi, TAQA's CEO, announced a plan to invest EGP 1.7 billion during 2023 and signed a definitive agreement with a Saudi partner to establish a new company in the kingdom.

The IFC is extending a 10-year Tier 2 facility worth USD 150 mn to COMI, to support the bank’s sustainable growth plans.

CNFN's consumer finance arm Contact Creditech and digital payments app Telda have teamed up to offer lending-as-a-service (LaaS) solutions.

Kahromika, AIH’s subsidiary wins the bid for the new electricity connection lines, linking New Delta and October City with a total cost of EGP510 mn.

Businessman Jamal Al-Jarhi acquired less than 5% of the capital of Beltone Holding Company, by purchasing a share of the subscription rights in the company's shares. 

MPs gave final approval to two bills allowing for the USD565 million redevelopment of the East Port Said port.