Suez Canal Authority (SCA) announced an increase in transit fees by 5-15% starting as of 15 January 2024.

The CBE has asked banks to impose limits on the use of credit cards for foreign-currency transactions on concerns of misuse. Credit card holders will only be allowed to make USD250 a month in local FX transactions.

Chinese companies could invest as much as USD15.5 bn in the Suez Canal Economic Zone (SCZone) after a series of agreements, memoranda and other pacts were inked. Investments will largely target the energy sector.

The government could announce the winner of the stake in military-owned filling station operator Wataniya within a month to six weeks.

The cost of exempting 12 commodities from customs tariffs for six months is estimated at a maximum of c. EGP180 million, according to government sources.

ESRS (FV: EGP54.60, OW) reported consolidated results for 2Q23 with revenues soaring (+73% YoY, +24% QoQ), and bringing 1H23 top-line to EGP62.3 billion (+62% YoY). Attributable net income came in at EGP1.0 billion in 2Q23, reversing last quarter losses of EGP1.6 million, yet 45% lower than 2Q22. 

• We maintain our Overweight recommendation for ESRS despite the recent rally in the stock price given the Group’s solid operational performance and cost efficiencies. We see the exchange rate as the main driver to the stock price performance. So, depending on where the exchange rate would settle in the next 12 months will determine the exact value of the stock.
• ESRS is currently trading at FY24e P/E of 12.2x.

 
SWDY (FV: EGP22.87, OW) announced that its subsidiary, United Metals Company (UMC) secured a USD50 million loan from the European Bank for Reconstruction and Development (EBRD).  The Bank’s financing will secure UMC’s working capital needs to import copper cathodes, a key input for the production of cables.

We adjusted ORAS’s FV to EGP192.45/share from EGP181.70/share taking into account the new number of shares of 110.24 million shares, instead of the previous 116.76 million shares, post listing the issued capital decrease through cancelling 6.52 million treasury shares at a par value of USD1/share, effective yesterday.

The FRA has developed and published its first set of mortality data, known in the business as actuarial life tables, to be used for pricing insurance life products. The new compiled data will reflect the reality of the country’s population and help companies price their policies more realistically and efficiently.

Real estate compromised 85% of the total value of leasing contracts in 1H23.

Etisalat Misr plans to invest EGP10 billion in 2024, compared to EGP7 billion spent in 2023.