Pre-Trading Thoughts

Al Ahly Pharos

United Bank will kick off its planned offering on the EGX today. The total offering could see the bank raise up to EGP5.1 bn by floating an equivalent to a 30% stake.

The number of tourists visiting Egypt increased during Jan - November 2024 by 4% compared to the same period last year.

Egypt's imports of fuel shipments increased to more than USD12.5 billion during 10M2025, compared to USD10.5 billion in the same period last year.

EGAS is negotiating long-term agreements to import LNG, moving away from reliance on global tenders. The move aims to secure gas supplies and protect Egypt from fluctuating spot market prices. Tenders will remain in use, but only for limited imports.

IFC wants to collaborate with the government on mining materials it thinks will aid local manufacturing.

The government wants to replace 250k gasoline-fired car engines to ones that run on natural gas. The government will soon start converting its own fleet of vehicles to run on natural gas.

Al Dahra Egypt, a subsidiary of Emirati agribusiness Al Dahra, is planning on investing some USD 200 mn to add between 80k-90k feddans to its land portfolio over the next five years.

Abu Dhabi Tourism Investments Company, owned by the Abu Dhabi Fund for Development, is pumping new investments worth USD100 million to establish the Sofitel Legend Pyramids Hotel.

The House also greenlit a EUR 1.8 mn grant agreement to support people with disabilities, with Italy set to provide EUR 1.65 mn and the Social Solidarity Ministry providing EUR 181k.

We updated our FV for POUL to EGP21.29/share and maintain Overweight recommendation. The updated FV factors in:

1. Adjusting revenues to new market prices.

2. Normalized margins to average at 21.3% through the forecast period.

3. Strong cash position.

4. New macro assumptions.

POUL is currently trading at 2025f P/E of 3.3x.

OIH is set to acquire Misr for Entertainment Investments with its non-executive expert directors and independent directors approving the acquisition in principle.

Credit rating agency Fitch Ratings has upgraded the credit ratings of four major Egyptian banks. The agency upgraded the ratings of the National Bank of Egypt, Banque Misr, COMI, and Banque du Caire to B from B- with a stable outlook.

Al Marakby Steel to invest EGP1.5 billion in the coming five years within the company's expansion plan and establishing a solar power station.

Three Chinese companies had injected USD400 million of investments in the sanitary ware sector during the last few months.

Kempston, specializing in the production of SPC flooring, to launch the first phase of its new factory in Ain Sokhna in 1Q25 with a capacity of 1 million sqm per year. The second phase is planned to be operational by the end of 2025 doubling the capacity to 2 million sqm a year.

Chinese state-owned auto manufacturer FAW Group is re-entering the Egyptian market in 1Q25 under a partnership with an unnamed new agent.

Chery International subsidiaries Omoda and Jaecoo are in talks to enter the Egyptian market through a partnership with an unnamed local agent.