CAPMAS is expected to release inflation figures for November on Sunday, 10 December. We expect annual urban inflation to cool further to c.34% YoY benefiting from the accommodative base effect.

Egypt's PMI rose to 48.4 in November from 47.9 in October indicating a modest decline in the health of the non-oil private sector. Besides, business confidence fell to lowest level in series history.

The Suez Canal Authority achieved revenues of USD9.492 billion during 11M2023, an increase of 31% YoY compared to revenues for the same period in 2022, which amounted to USD7.201 billion.

The Sovereign Fund of Egypt (SFE) has appointed Belgium-headquartered engineering and consultancy firm Tractebel to act as a consultant for the sale of stakes in the state-owned 580-MW Gabal El Zeit and 545-MW Zafarana wind farms.

The gap between diesel production and consumption widened by about 46% during 9M2023, to reach 3.4 million tons, compared to 2.3 million tons during the same period in 2022.

UAE-based energy company K&K Group has signed an MoU on the sidelines of COP28 with Italian energy and engineering consultancy firm CESI for the development of a subsea electricity link connecting Egypt to Italy, the companies said. The proposed 3 GW link would ship power generated by renewable energy in Egypt to across the Med, accounting for 5% of Italy’s peak electricity demand.

Benchmark Power International is negotiating with the African Export-Import Bank and its Chinese counterpart to arrange financing of about USD600 million in several tranches to establish a green ammonia production project in Suez, Egypt.

We updated our FV for EGCH to EGP8.25/share, with an Underweight recommendation. Our value does not include the company’s future project in Aswan. EGCH is currently trading at a FY23/24e P/E of 11.3x.

ABUK sent a release announcing that the company’s share in North Abu Qir for Agricultural Nutrients Company is 45% and that the studies are underway to transform it into a green project through a contract to supply green hydrogen to produce green ammonia and ammonium nitrate. 

ETEL (FV: EGP45.00, OW) released its guidance for 2024: Mid-double-digit revenue growth, compared to our estimates of 26.5% in 2024f. ETEL is currently trading at 2024f P/E of 5.0x.

Engazaat joined forces with EFIH’s subsidiary eAswaaq and NBE to sign an agreement to offer small farmers financing for solar energy and smart irrigation systems. 

GB Corp’s subsidiary Drive has completed its fourth securitized bond offering with an amount of EGP 1.4 billion. Proceeds from the transaction will be used to deleverage Drive’s balance sheet to improve its liquidity position, create new borrowing limits with lender banks and support the company’s future growth plans.

BTFH has signed a letter of intent to acquire real estate developer SODIC’s licensed securitization subsidiary.

In other news, the company’s leasing and factoring arm has inked a EGP200 mn factoring agreement with local medical equipment and services provider, EGMED. This marks the first factoring agreement for the company. 

British multinational lender Standard Chartered Egypt will begin operations early 2024, according to Finance Minister Mohamed Maait.

Arab Sovereign Funds are negotiating with ACDIMA to acquire 20% of the Arab API company, which is scheduled to be established in the coming days. Arab API shareholder structure will be as follows:ACDIMA 50%,PHAR 20%, Pharco Pharmaceuticals 10%, and the remaining 20% will be for Arab entities.

The government is currently studying implying a sugar export ban for free zone companies. Free zone companies used to import sugar at global prices, yet after the disruption caused by covid they started using local sugar. This move comes as an attempt to bring sugar prices down and make it available in the local market.