Pre-Trading Thoughts

Al Ahly Pharos

*Key news articles for today*

Egypt aims to raise some USD6.5 bn through the privatization of state-owned companies and assets by the end of the year, Finance Minister said. A large chunk of the USD6.5 should be raised by June through stake sales of Wataniya, Gabal El Zeit wind farm, Port Said and Damietta Container & Cargo Handling companies, United Bank, and a Siemens-built power plant in Beni Suef.

The government decided to establish a higher council for each industrial sector, according to the CEO of the General Investment Authority. He added that the Authority is looking forward to attracting USD12 billion in FDI by the end of the current fiscal year.

Minister of Trade and Industry Ahmed Samir discussed the plan to establish a Turkish industrial zone in Egypt, with the President of the Chamber of Commerce and Industry in the Turkish city of Bursa. The zone will be similar to the existing industrial zone in the city of Bursa, which specializes in the fields of textiles, cars, aluminum, machinery, equipment and advanced technologies.

ORHD (FV: EGP20.38, OW) achieved impressive 4Q23 sales of EGP6.4 billion, up 66.1% y/y and 13.9% q/q, bringing FY23 sales up 74.9% y/y to a company record of EGP19.4 billion. We maintain our Overweight recommendation of ORHD based on our FV of EGP20.38/share.

Amer Group is selling all of its shares in Casual Dining for Tourism Development, the firm that runs and operates Chili’s restaurants in Egypt.

CIEB's BoD proposed cash dividend distribution of EGP2.47/share, implying a payout ratio of 60% (+15pps higher than our estimates of 45%) and Dividend Yield of 9.2%, pending AGM approval.

HRHO’s leasing and factoring arm, Corp-Solutions, will provide financing services for investors who want to establish projects in Elsewedy Industrial Development’s Sokhna 360 industrial city.

Non-banking financial services firm GlobalCorp has issued a EGP1.35 bn securitized bond issuance, which is part of an EGP10 bn securitization program.

ALCN released 2Q23/24 full financials showing:

• Net profit of EGP1.2 billion in 2Q23/24 (+7.4% YoY, +23.9% QoQ).
• On semi-annual basis, net profit increased by 21.9% YoY to record EGP2.2 billion in 1H23/24.
• ALCN is currently trading at FY23/24 P/E of 18.8x.

SWDY (FV: EGP34.96, OW) announced that its sister company, El Sewedy Cables Qatar, has been awarded a letter of award to the Qatar General Electricity and Water Corporation “Kahramaa”. This contract aims to supply electrical cables with a value exceeding USD327 million for a period of three years.

KIMA sent a release to EGX announcing that the company is still in negotiations with banks over loans to finance the ammonium nitrate project.

Banque Misr has acquired a 2.2% stake in the EKHO in an EGP963 million transaction.

Egypt's Sovereign Fund is looking to cooperate with the India's Hinduja Group in building a factory to manufacture cars in Egypt with a capacity of 6 thousand units per annum.

FRA granted Fawry Microfinance the license for SMEs Financing.