Pre-Trading Thoughts

Al Ahly Pharos

Minister of Finance revealed that the size of the loan requested by the government from the International Monetary Fund is less than USD15 billion.

Ministry of Finance has not yet determined the final size of the international bond to be offered in 2022-2023.

Free Zone Companies are looking into securing their raw material needs from the local market, to alleviate some of the pressure on foreign currency demand.

Egyptian Competition Authority (ECA) has approved a request by 23 cement producers to extend cement production cuts for one additional year until July 31, 2023.

ORAS announced that the estimated consolidated backlog stood at USD6.4 billion as of June 30, 2022. The company added USD1.8 billion of new awards to its backlog in 2Q2022.

Alpha Sustainable Capital in Africa Fund raised its ownership in the capital of Orascom Construction to 14.27%.

Oil prices plunged by 1.7% WoW by the beginning of August as the market digested weak economic figures from China.

El-Sisi issued instructions to build the Middle East's largest polyethylene industrial complex to fulfill the local market demand.

The Ministry of Petroleum and the Ministry of Electricity agreed to increase mazut supply for electricity production stations this month. (AMOC)

MICH 21/22 net profit amounted to EGP211 million (+59% YoY). MICH is trading at FY21/22 P/E of 3.62x.

Medvert Egypt Investment Company acquired a 10% stake in EFIC, raising its stake in the company from 11.95% to 21.95%.

MCRO reported 1H22 net profit of EGP71.4 million in 1H22, a surge of 75.1% YoY, driven by a significant drop in IPO costs and lack of provisions like last year. During 2Q22, net profit recorded EGP40.7 million (+36.2% YoY, +32.7% QoQ). MCRO is currently trading at an annualized 2022f P/E of 12.9x and EV/EBITDA of 9.0x.

Aldar Properties wants to expand its land bank on the North Coast, in West Cairo and East Cairo, and eventually on the Red Sea Coast.

MNHD launched a new Taj City-based project, 50.0% of which was sold within two days, generating EGP400.0 million in sales.

EMFD's Soul project, its North Coast partnership project in which it has a 25.0% stake, require an investment cost of EGP53.0 billion.

MHOT reported a 734.1% y/y increase in FY21/22 revenue to EGP525.8 million and FY21/22 net profit of EGP350.6 million, compared to FY20/21 net loss of EGP183.3 million.

Five car agents, including AUTO, have notified their authorized distributors that they will stop delivering the quotas of cars due to unavailability.

Taaleem for Management Services has signed a memorandum of understanding with Maastricht University, for academic partnership.

Arabia Investments Holding disclosed that a court ruling has been issued rejecting the lawsuit against Peugeot. AIH intends to appeal against the ruling.