GBCO (FV: EGP12.86, OW) made it to our top-picks list, mainly backed by GB Capital, as it forms 71% of our final valuation, while GB Auto holds only 29%. GBCO is currently trading at a FY24 P/E of 3.2x and an EV/EBITDA of 3.2x.

Economic growth slowed to 2.65% YoY in 1QFY2023-24, according to new data by the Planning Ministry. That is down from 4.4% YoY in 1Q2022-23 and 2.9% YoY in the final quarter.

The General Authority for Investment and Free Zones has agreed with the CBE that foreign companies will not waive transfers in foreign currencies in banks that are intended to increase the company’s capital only.

The Suez Canal Authority has started to collect an increase in fees for transiting ships by rates ranging between 5% and 15% for specific types of ships, as per their decision issued last October.

The Ministry of Finance expects public debt to decline by FY2023/24 end to 92.2% of GDP, and continue to decline to 91.9% of GDP next fiscal year, and 88% in FY2025-26.

Kuwait’s Ali Alghanim & Sons Automotive, Saudi’s Mohamed Yousuf Naghi Group, and Egypt’s Organi Group have launched a joint venture dubbed Auto Mobility that will invest USD100 million into localizing the production of cars from Chinese automobile giant Geely. 

No fewer than five Qatari vessels carrying liquefied natural gas (LNG) making their way to the Bab El Mandeb strait have been stopped in their tracks since Friday. Around 209 oil tankers or 4% of the world’s oil fleet have started rerouting away from the Red Sea over the weekend.

The Egyptian Stock Exchange aims to launch a new electronic disclosure system by 2025 aiming at developing the technological structure of the market by modernizing the electronic trading system.

The Egyptian National Railway Authority intends to borrow EGP18 billion from a consortium of local banks to finance two railway projects, which it plans to launch during the second half of this year.

The House of Representatives approved the seventh structural adjustment facility agreement between Egypt and the Arab Monetary Fund, worth USD614.3 million.

A government official estimated Egypt's total imports of Israeli natural gas at about 900 million cubic feet per day in January 2024. 

The government plans to double the capacity of Cairo International Airport. The new terminal will accommodate an additional 30 million passengers per year.

SAUD and EGBE have disabled credit card withdrawals abroad. EGBE has also cut monthly credit card limits on foreign exchange transactions executed abroad to the equivalent of EGP3k.
 
HRHO’s ValU signed a partnership agreement with the Damietta Chamber of Commerce to enhance the furniture industry in Damietta by providing an integrated package of buy now and pay later solutions.
 
Local mobile operators are planning to launch eSIMs in 1Q24, with pre-launch trials currently underway.
 
ETEL and Zain Omantel International (ZOI) are joining forces to build a digital corridor. This corridor will connect the Mediterranean Sea to the Arabian Sea and Arabian Gulf, creating an unprecedented data highway. Telecom Egypt will develop new infrastructure across Egypt from the Red Sea to the Mediterranean and onwards to Europe.
 
CBE is studying linking InstaPay to four BRICS countries including India, Russia, Brazil, and South Africa.

ARCC (FV: EGP13.01, OW) is to undertake a filter upgrade conversion project with a total estimated cost of EUR8 million. 

The winner of the tender to install the signaling and control systems for the Cairo-Alexandria freight railway bypass will be announced next July. 

RMDA achieved 31% YoY increase in revenues (including injectable antibiotics) in November 2023. 

Egypt’s exports of medicines and pharmaceutical products increased by 11.7% YoY in 10M23 to reach USD276.68 million.