Pre-Trading Thoughts

Al Ahly Pharos

The CBE sold yesterday 3-years T-bonds worth EGP5 billion, more than the EGP4 billion originally targeted. Yields averaged 24.83%, lower than 24.98% in the last auction.
The government is planning a 20% payment of international oil companies’ dues during June 2024. Current dues reached USD4.5 billion after the payment of USD1.5 billion last March.

Egypt’s production of natural gas increased by 4.8% MoM to 4.49 bcf in March 2024. However, production decreased by 15% YoY. On the other hand, gas consumption increased by 10% MoM to 5.26 bcf in March.

The Ministry of Finance is planning the early payment of the export subsidy worth EGP8 billion for the beneficiaries of the seventh phase of the initiatives to start on 6 June 2024.

ORAS reported its consolidated 1Q24 results, with net income attributable to shareholders surging to USD46.1 million (+28% YoY, +5% QoQ), beating our estimate of USD34.0 million, supported primarily by significant net forex gains of USD58.8 million during the quarter. ORAS is currently trading at FY24e P/E of 8.2x.

SWDY refuted published news about the appointment of Maatouk Bassiouny & Hennawy as legal advisor to advise on the offer received recently.

The Egyptian Federation for Construction and Building Contractors is set to sign a cooperation agreement with the Libyan Contractors’ Union next week, to increase Egyptian construction companies' participation in Libyan reconstruction projects.

TMGH (FV: EGP73.80, OW) achieved strong sales of over EGP100.0 billion, representing 9,303 units, year-to-date until 20 May 2024, which is 2.6x the sales level in the same period last year. This figure includes sales of around EGP24.2 billion, representing 1,706 units, in Banan.

EFIH acquired a 25% stake in “Al Ahly Momken” and a 13% in “EasyCash for Digital Payments”.

NTRA is preparing to issue a tender to establish mobile towers at an estimated cost of up to EGP5 bn to support mobile networks and towers on all Egyptian roads.

HRHO has acquired an undisclosed minority stake in the Danish digital wealth manager Kenzi Wealth.

The European Bank for Reconstruction and Development (EBRD) will provide the National Bank of Egypt with USD 119.5 mn for on-lending to local micro, small and medium-sized enterprises (MSMEs).

EAST will increase its paid-in capital from 2.23 billion to EGP3.0 billion, htrough bonus shares which will be distributed at the rate of 0.345 shares for each original share held before the increase. Record date is on 5 June 2024 and distribution date is on 6 June 2024.

EFID inks EGP990 million loan with 8-year tenor from Banque Misr to finance its local expansion plan, a chunk of the loan has already been allocated to finance a new bakery line which is expected to kick off operations in the second half of the year.

The Finance Ministry could amend customs regulations for chemical products in order to boost local industry. The Chamber of Chemical Industries proposed increasing tariffs by 5-10% on chemical products that are imported but have a locally-made counterpart.

The state-owned Western Desert Operating Petroleum Company (Wepco) is looking to invest some USD420 million to expand its Al Hamra terminal.

Sources revealed discussions for the establishment of a committee that reviews drug prices every 6 months, similar to fuel.