Pre-Trading Thoughts

Al Ahly Pharos

The IMF has kept our growth forecast for the current fiscal year unchanged at 4.1% in its updated World Economic Outlook.

President Sisi met his Russian counterpart Vladimir Putin on the sidelines of the Brics Summit, which kicked off in Kazan yesterday. The conversation centered around Egypt’s role in the bloc, bilateral relationship, and regional and international issues.

El Sisi made a case for using the Brics platform to find workarounds for external trade restrictions that hamper intra-bloc trade, particularly that between Egypt and Russia.

The Ministry of Civil Aviation has completed the final phase of the technical study and timetable for offering a number of EgyptAir Holding Company affiliated companies for management and operation.

The government will work to localize the manufacture of 12 products selected by the ministries of housing and industry.

Africa-focused and London-based PE outfit Helios Investment Partners is looking into acquiring stakes in another three Egyptian companies, the company’s consumer and healthcare head Raed Barkatis said.

LG Electronics Egypt intends to launch a new line for producing refrigerators at its factory in 10th of Ramadan City with investments of no less than USD150 million.

The government is working on a plan to help Egyptian industry adjust to meet the EU’s new standards, the Carbon Border Adjustment Mechanism (CBAM), which is set to fully go into effect starting 2026, to safeguard Egypt’s export competitiveness

The FRA has released a circular outlining new regulations for securitization activity, to protect those who invest in securities and ensure the market operates efficiently.

SUGR released 3Q24 financial indicators, reporting bottom line of EGP214 million in 3Q24 (-32% YoY, -70% QoQ), reflecting a NPM of 19% (+3.4pps YoY, -116.5pps QoQ). The sequential drop-in bottom-line performance is attributed to the high base effect of 2Q24, which was significantly impacted by investment income and other income, accounting for 61.4% of total income for that quarter. On 9M basis, net profit recorded EGP1,154 million (-17.8% YoY) with NPM of 50% (+24.5pps YoY). SUGR is currently trading at 2025f P/E of 5.7x and EV/EBITDA of 4.9x.

EGAL’s general assembly approved the distribution of a cash dividend of EGP7.0/share for FY23/24, implying a payout ratio of 31% and a dividend yield of 6%.

HELI’s board approved the final price to acquire the 52k sqm Mansoura land plot for EGP2.2 billion. HELI had already previously paid EGP2.0 billion as a deposit, leaving EGP202.4 million as the remaining amount to be paid.

Khalda Petroleum, a JV between US oil producer Apache and EGPC, will allocate USD70 million of its planned USD1.3 billion in investments earmarked for the current fiscal year to launch a new diesel production project.