Pre-Trading Thoughts

Al Ahly Pharos

Egypt plans to issue international bonds worth USD6 billion in FY 2022/23 to finance its foreign exchange needs. The same article adds that Egypt is negotiating with the IMF a USD15 billion facility.

Acquisition deals recently concluded by Gulf funds (ADQ, PIF) on the Egyptian stock exchange can be repurchased within two years from the date of sale, according to the local media.

FRA has approved a proposal from the EGX allowing it to prompt securities brokers to reverse transactions that appear to have violated trading rules. EGX can immediately compel the buyer to sell the shares back to the seller, reversing the transaction.

A government committee has approved a per-sqm pricing mechanism to sell state-owned land to the industrial sector taking into account the cost of utilities. Cabinet also agreed to extend the 7% interest rate on installment payment plans for industrial land for another three years.

EKHO's attributable net income amounted to USD72 million, slightly higher by 2% QoQ and 60% YoY. EKHO 1H22 net income registered USD143 million, up by 63% YoY. EKHO is trading at a 2022 P/E of 6.3x and EV/EBITDA of 2.8x.

ORHD achieved strong 2Q22 sales of EGP2.7 billion, up 39.4% y/y bringing 1H22 sales to ORHD’s highest ever first half sales of EGP4.7 billion, up 16.9% y/y. Net profit in 2Q22 reached EGP365.9 million, up 32.0% y/y and down 12.9% q/q, bringing 1H22 net profit to EGP786.0 million, up 14.5% y/y.

EMFD denied media reports that it submitted an offer to El Mostakbal for Urban Development to co-develop El Mostakbal's 1,000 feddan land plot in East Cairo.

MTIE 2Q22 net attributable profit came in at EGP92.8 million in 2Q22 (-18.9% YoY, 82.8% QoQ. 1H22 attributable net profit came in at EGP143.5 million, compared to EGP241.7; a decline of 40.6% YoY. MTIE is currently trading at 2022f P/E of 14.1x and EV/EBITDA of 10.6x. A detailed note to follow.

RACC reported 1H2022 net profit came in at EGP14.22 million in 1H2022, compared to EGP9.76 million; an increase of 45.7% YoY. RACC is currently trading at an annualized 2022f P/E of 22.2x.

ISPH 2Q22 net profit came in at EGP28.9 million in 2Q22 (-46.8% YoY, -51.3% QoQ). During 1H2022, net profit came in at EGP87.7 million, compared to EGP104.7 million; a decline of 16.2% ISPH is trading at 2022f P/E of 7.5x and EV/EBITDA of 3.7x.

According to local media, ISPH is eyeing investment opportunities in healthcare and logistics sectors, with an expected transaction execution within two months.

AXPH released FY21/22 bottom line increased by 3.8% YoY to record EGP121 million. AXPH is currently trading at FY21/22 P/E of 4.4x and EV/EBITDA of 2.7x.

CPCI released FY21/22 net profit with a surge of 42.5% YoY, reaching EGP177 million in FY21/22. CPCI is currently trading at FY21/22 P/E of 3.1x and EV/EBITDA of 1.8x.

ARCC better-than-expected 2Q22 attributable net income for the quarter hiked to record EGP61 million reversing the comparative quarter losses of EGP17 million and 3% higher than 1Q22 earnings. ARCC is currently trading at FY22e P/E of 8.3x, EV/EBITDA of 2.4x and EV/ton of EGP342.6.

MCQE reported fragile 2Q22 attributable net earnings were significantly hit during the quarter to land in the red recording a loss of EGP6 million, down from profits of EGP32 million in comparative quarter. MCQE is trading at FY22e P EV/EBITDA of 4.7x.

AUTO 2Q22 consolidated attributable net income for the quarter amounted to EGP490 mn, a remarkable incline of 31.3% YoY and 113.9% QoQ. AUTO is currently trading at a FY22 P/E of 3.2x and an EV/EBITDA of 7.4x.

EFID started operations at its new EGP 135 mn production line, which is set to increase Edita’s production of baked goods by 20% to 11 mn tons a year. The company had pledged some EGP 400 mn this year in investments to add new production lines for its baked goods and wafers segment.

According to local media