Pre-Trading Thoughts

Al Ahly Pharos

The EGP continued to slide against the USD and closed at 19.15 yesterday.

Suez Canal Authority (SCA) is considering listing 10-15% of three of its companies on the EGX by the end of 2022.

Prime Minister has given orders to solve problems facing the industrial sector, in a meeting with the Minister of Trade and Industry.

Qualifying bidders looking to manage and operate the soon-to-be-established state company that will manage a network of electric vehicle charging stations have until August 31 to submit offers.

OPEC+ members agreed during yesterday’s meeting to increase oil production by 100 thousand barrels a day in September, far less than the nearly 650 thousand barrels a day that the group agreed to add in July and August.

Saudi Wealth Fund joins ADQ in its interest to acquire an additional stake in MFPC (OW, FV: EGP126.75).

MFPC released 2Q22 standalone results. Net profit after taxes registered EGP820 million which is down 59.74% QoQ but up 1.24x YoY. Net profit after taxes registered EGP2.858 billion in 1H22 which is up by 3.36x YoY. MFPC is trading at 2022 EV/EBITDA of 1.0x and P/E of 2.8x.

Chimera Investments acquired a 56% stake in Beltone Financial through its mandatory tender offer.

CIEB 2Q22 consolidated bottom line recorded EGP524 million, pre minority interest and appropriations, (+7% q/q, +35% y/y), 11% higher than Pharos estimates of EGP471 million, bringing 1H22 bottom line to EGP 1,015 million (+32% y/y). The stock is trading at 4.2x P/E22 and 0.7x P/B22 with ROAE of 18%.

The Building Materials Division of the Federation of Egyptian Industries is to submit a memo to the Egyptian Competition Authority (ECA) requesting the latter to reconsider its decision to extend cement production cuts for one additional year. The Chamber sees the decision to further raise cement prices which could deepen the current slowdown, according to Ahmed Al Zainy – Head of Building Materials Division.

ACAMD received the draft MoU from the Egyptian Company for Housing and Development - RAMW for the co-development of ACAMD’s 24.8k sqm Tanta land plot. According to local media, the ACAMD Board is meeting next week to discuss the offer.