The government pledged to guarantee the capital (USD800 million) recently invested by ADQ in 3 companies, in addition to an annual rate of 8% for a period of 4 years. The companies include National Drilling (25%), Elab (35%), and Ethydco (30%).  

Egypt’s government intends to offer stakes in 5 key companies, in addition to water desalination plants, until the end of June 2024. The program aims to collect USD 5 billion during this stage, the largest part of which is due to the offering of 70% of the Siemens power station in Beni Suef.  

Supply Minister announced on Sunday the exclusion of rice from ration cards. 

BP will invest USD 3.5 bn in exploration and production operations in Egypt over the next three years. 

Middle East Glass (MEG) gave the green light to unnamed investors to conduct due diligence. 

Ministry of Electricity revealed the details of the plan to expand the participation of the private sector in electricity production to create a competitive market in the field of energy. 

Financial Regulatory Authority approved the criteria for registering verification and certification bodies for projects to reduce carbon emissions. 

The first round of GERD talks between Egypt, Ethiopia, and Sudan did not witness any tangible change in the Ethiopian position.  
The industrial sector requests the same tax exemptions and similar incentives for ongoing projects, and it would not be exclusive to new projects.  

HELI (FV: EGP12.44, OW) is to draw up a protocol agreement with the National Organization for Social Insurance regarding the National Organization for Social Insurance's offer to buy HELI's 1,695 feddan Heliopark land plot. According to local media, the final agreement could be signed in 4Q23.

According to local media, the National Organization for Social Insurance plans to invest EGP25.0 billion in the real estate sector.

EGAL (FV: EGP53.58, OW) posted its preliminary financial results for 4Q22/23 and FY22/23 recording a net loss of EGP225 million in 4Q22/23, bringing FY22/23 bottom-line to EGP3.7 billion (+48% YoY). We expect the weak bottom-line during the quarter came due to a hike in interest expense and other non-operating expenses. EGAL is trading at FY23/24 PE of 3.1x and EV/EBITDA of 3.1x.

We published our 2Q23 Cement Wrap Up. We maintain our Overweight recommendation for ARCC at a FV of EGP9.94/share. We upgraded our fair value for MCQE to EGP20.17/share, yet maintaining our Equalweight recommendation. We downgraded our fair value for MBSC to EGP25.73/share down from EGP28.12/share (adjusted for the capital decrease), maintaining our Equalweight recommendation. 

EFIC (EW, FV: EGP39.53) Issued financial results for 2Q23. Net profit after taxes amounted to EGP213 million, up 65% QoQ but down 18% YoY. 1H23 bottom line recorded EGP436 million, down by 12% YoY, due to weaker gross margins and higher non-operating expenses. EFIC is currently trading at 2023 P/E of 6.0x and EV/EBITDA of 4.36x.

According to local media, EAST's stake sale will be finalized within 1H24. The holding company for chemical industries received 3 offers from Phillip Morris, JTI, and another GCC investor.

Beltone Financial has not entered into any form of agreement to acquire the fintech platform Cashcall. It announced entry with Pickalbatros an EGP 750 mn sale-leaseback agreement.  

CIRA is studying the implementation of the second issuance of future rights securitization bonds at a value of EGP700 million.