A number of US Democratic lawmakers have joined a group of senators in calling on the Biden administration to withhold a quarter of Egypt’s annual USD 1.3 bn of military aid on human rights grounds.

ADQ-owned food company Agthia is no longer looking to acquire military-owned bottled drinks firm Safi,

Egyptian men living abroad will be able to begin the process of settling any outstanding military service obligations today and until one month.

Egyptian expats who have registered in the expat car import initiative will have to complete their payments within a month for import approvals.

A number of draft laws that aimed at encouraging foreign ownership of real estate will soon be sent to the cabinet.

The government is studying importing wheat from Romania under a barter system, in an attempt to secure its stock of grain and lift the pressure on the dollar.

The Economic Committee of the House of Representatives completed a study of amendments to the Capital Market Law with FRA to encourage higher investments in the capital market.

ETEL (FV: EGP34.00, OW) reported 2Q23 net profit came in at EGP2.88 billion in 2Q23 (+19.4% YoY, -24.3% QoQ), shaped by: healthy revenue growth, margin contraction, higher investment income from Vodafone of EGP1.07 billion (+47.2% YoY, +19.7% QoQ), and higher annual finance cost in 2Q23. During 1H23, net profit came in at EGP6.7 billion (+77.1% YoY). Telecom Egypt is currently trading at 2023e P/E of 4.2x and EV/Adjusted EBITDA of 2.7x.

EKHO (FV: USD1.86, OW) posted USD100 million in 1H23 net profit, declining 30% YoY compared to USD143.4 million in 1H22. Net profit recorded USD40 million in 2Q23, a decline of 45% YoY (-33% QoQ) compared to USD72.4 million in 2Q22 and USD60 million in 1Q22. Urea prices declined by 56% YoY in 1H23, and by 63% YoY (-20% QoQ) to average USD345/ton during 2Q23. EKHO is currently trading at 2023e PE of 6.0x and EV/EBITDA of 3.4x. We are still waiting for the release of full financials for more details.

India’s ReNew Power could break ground on its USD8 billion green hydrogen plant in the Suez Canal Economic Zone early next year. The Indian company and El Sewedy Electric signed a framework agreement with the government in November for the plant.

The first leg of the 1,100-km high-speed rail line will begin operating at the end of 2024 (ORAS, SWDY).

The National Authority for Tunnels extended the deadline for opening the envelopes of the Raml Tram in Alexandria to next month instead of this August. (ORAS)

TMGH (FV: EGP22.55, OW) achieved stellar 2Q23 results, with 2Q23 sales rising 248.7% y/y and 69.5% q/q to EGP20.7 billion, bringing 1H23 sales up 191.0% y/y to EGP32.9 billion. Net profit in 2Q23 grew 48.7% y/y and 8.7% q/q to EGP812.7 million, bringing 1H23 net profit up 40.3% y/y to EGP1.6 billion. We maintain our Overweight recommendation of TMGH based on our FV of EGP22.55/share.

OCDI (FV: EGP23.30, OW) completed the down payment to acquire the 180 feddan land plot it had announced in May 2023, located directly south of its North Coast project, Caesar, and received the contract for the land plot signed by the New Urban Communities Authority.

ADIB (FV: EGP35.00, OW) 2Q23 consolidated bottom line recorded EGP 1,161 million, pre-minority interest and appropriations, (+15% q/q, +103% y/y). 1H23 bottom line reached EGP2,168 million (+112% y/y). The bank is currently trading at annualized 1H23 multiples of 0.9x P/B23 and 2.8x P/E23.

HRHO is currently working on several mergers and acquisitions in Gulf countries including Saudi Arabia, United Arab Emirates, Kuwait, and Amman. 

The Central Bank of Egypt (CBE) has declined a request by the Federation of Egyptian Banks to bring back exemptions that would exclude their largest clients from credit concentration limits until December 2024. 

ISPH 2Q23 bottom line recorded EGP59.4 million in 2Q23 (+105.4% YoY,-18.1% QoQ). T