Pre-Trading Thoughts

Al Ahly Pharos

The CBE will start handing out letters of credit (LCs) to importers of non-essential goods at the start of June.

The government has cleared USD20 billion worth of goods across the country’s ports since the beginning of 2024, a source at the Customs said.

Prime Minister stated during the World Economic Forum meeting in Riyadh that it costs Egypt USD10 billion annually to host 9 million refugees.

Japan has pledged USD230 million in financing to support the state budget, Finance Minister Mohamed Maait said.

The Egyptian Tax Authority confirmed that it has not issued any directives or instructions during the previous period to date regarding the application of the tax on capital gains regarding securities on the stock exchange.

The Development Finance Corporation, affiliated with the federal government of the US, is considering financing the Actis Fund’s acquisition of the Jebel El-Zeit wind station.

The CBE sold USD997.6 million worth of one-year treasury bills in an auction, with an average return of 5.149%.

The WB revealed that Egypt's national poverty rate rose in 2022 to 32.5% from 29.7% in FY2019-20 fiscal year.

Egypt plans to bid for four desalination plants at a total cost of USD350 million on the North Coast near Ras El Hekma in mid-July, according to local media. It is worth highlighting that ORAS and SWDY were among the prequalified bidders.

TMGH (FV: EGP73.80, OW) Board approved a share buyback of up to 10.0 million treasury shares during the period 29 April 2024 to 29 May 2024.

According to local media, HELI (FV: EGP18.84, OW) is planning to select the co-developer of its 580 feddan New Heliopolis land plot in around two weeks and is negotiating to have the down payment paid to HELI increased to EGP1.0 billion. The project is expected to generate revenue of at least EGP35.0 billion, with a minimum gurarntee to HELI of at least EGP17.0 billion.

AMOC released 3Q23/24 unaudited financial indicators. Net profit increased by 315% YoY and declined by 21% QoQ to EGP393 million in 3Q23/24. On a nine-month basis, net profit before minority interest grew by 19% YoY to EGP1.31 billion in 9M23/24. AMOC is currently trading at FY23/24e PE of 4.7x and EV/EBITDA of 3.0x.

According to local media, SUGR net profit declined by 33% YoY in 1Q24 to EGP216.8 million compared to EGP323.8 million in 1Q23.

Ashry Steel is adding two new production lines worth USD150 million to its business that will be completed in ten months to scale up the production of iron and other products and increase total capacity by 30%, according to local media.

Egypt's total cement exports dropped 31% YoY to USD165 million in 1Q24.

Beltone Holding subsidiary, Beltone Investment Holding (BIH), will launch a USD100 million private credit platform geared towards the needs of Egyptian exporters as well as companies with overseas operations.

Investment management firm Act Financial wants to either acquire or merge with another entity. A number of Saudi and Emirati investors have already expressed interest in taking part in the transaction.

HRHO has issued EGP600 million of debt to its subsidiary Hermes Securities Brokerage (HSB) in the form of a senior unsecured short-term note.