EGX30 Rebalancing| Starting August 1, the following stocks will be included in the EGX30 Index: BTFH, BINV, ORHD, ALCN and the following will be excluded: TALM, ISPH, CLHO, RMDA.

OCDI (FV: EGP23.30, OW) reported strong 2Q23 sales of EGP5.4 billion, up 83.3% y/y and 93.9% q/q, bringing 1H23 sales up 22.5% y/y to EGP8.2 billion. Net profit in 2Q23 reached EGP147.8 million, up 125.6% y/y and down 21.1% q/q, bringing 1H23 net profit up 14.9% y/y to EGP335.1 million. With 1H23 sales of EGP8.2 billion, OCDI is on track to reach our FY23 sales forecast of EGP17.4 billion projected in our FV of EGP23.30/share. 

TMGH's (FV: EGP19.67, OW) subsidiary issued a EGP400.0 million securitization backed by club memberships in Madinaty and Al Rehab.

PIF is competing with the QIA to acquire ETEL’s stake in Vodafone Egypt. Sources added that ADQ has also expressed interest in acquiring the stake, according to local press.

OPay, a fast-growing fintech player operating in Egypt, Nigeria, and Pakistan, is planning to apply for a digital bank license in Egypt with a paid-in capital of USD60 million.

Five suppliers, including SWDY (FV: EGP22.87, OW), won a tender to supply 20k prepaid electric meters each for the Alexandria Distribution Company.

Official sources at The Export Council for Chemical Industries and Fertilizers stated that lower natural gas feedstock will have a short-term negative impact and it is hard to be extended for more than one month due to the export commitments local producers have. Accordingly, local producers will reduce a portion of local sales in order to better manage the situation at hand. 

MICH released FY22/23 net profit came in at EGP543 million, higher by 158% YoY. MICH is trading at FY22/23 P/E multiple of 3.17x.

BINV and MTIE have together invested EGP505 mn in newly-established pharma logistics firm EZ International where BINV invested EGP300 mn while MTIE invested EGP205 mn. The investment was made through SPV B Pharma, in which MTI recently acquired a 40% stake in return for its investment while BINV holds the remaining 60%.

AXPH released FY22/23 Bottom line recorded EGP125.1 million in FY22/23 (+3.0% YoY). AXPH is currently trading at FY22/23 P/E of 6.4x and EV/EBITDA of 3.4x.

ISPH shareholders approved reducing the company’s capital to EGP252 million from EGP280 million by canceling 112 million treasury shares.

Al Amal Auto will temporarily suspend operations at its BYD assembly plant in Egypt within two weeks, due to difficulty obtaining foreign currency to import the required production components.

The African Export-Import Bank “Afrexim Bank” renewed two loans to the United Bank for a period of one year, with a total value of nearly USD 1 billion, guaranteed by the CBE. 

The International Finance Corporation (IFC) is considering lending Al Baraka Bank (SAUD) Egypt USD 55 million to expand financing for small, medium, and micro enterprises, especially those owned by women.

ETRS plans to launch its subsidiary “Egytrans for Car Solutions” (car warehousing facility) by the end of this year, or early next year at the latest, in addition to studying other investment opportunities.

CNFN plans to issue a new securitization process worth more than EGP 1 billion by the end of 3Q23.

CICH announced the completion of the issuance of securitization bonds in favor of Aman, with a total value of EGP 859 million.

Weekly Commodities Update |  Last Price           WoW Change, %

Brent, USD/bbl  85.0      4.8%

Diesel-HSFO Spread, USD/ton     414.6    19.1%

Egypt Urea, USD/ton      451.5    11.3%

Polyethylene, USD/ton  1,020.0 0.0%

Polypropylene, USD/ton              902.5    2.0%

Steel/Iron Ore Spreads, USD/ton    &