Pre-Trading Thoughts

Al Ahly Pharos

Tourist arrivals in the first 40 days of this year were up 5% from the same period last year, Tourism Minister said. Egypt received a record 14.9 million tourists in 2023.
Egypt's Trade deficit reached USD3.032 billion during December 2023. Egypt's trade deficit decreased during 2023 by about USD11.2 billion, recording about USD36.9 billion.
BP is planning to inject at least USD1.5 billion in new investments for development and exploration activities, with the potential of an additional USD5 billion in investments over the coming years.
The International Finance Corporation plans to invest some USD1 billion in Egypt this year, the same amount invested in the country last year.
The International Islamic Trade Finance Corporation (ITFC) has inked its USD1.5 billion annual work program with Egypt. The funds, earmarked for EGPC and GASC, will support the state’s energy and commodities purchases.
Saudi Egyptian Company for Medical Laboratories is set to invest some EGP400 million in the Egyptian market this year.
Finance Minister unveiled fresh details on the proposed amendments to the Unified Budget Act, under which the budgets of all 59 of the state’s economic bodies and the state budget will be presented in a new consolidated budget. The move will happen gradually over a five-year period starting FY2024-25.
Suez Canal revenues are down by 40-50%, El Sisi said.
El Sisi calls for low-cost financing to drive Egypt’s green transition as previously pledged by major economies.
The FRA approved the decision of the Egyptian Stock Exchange Board of Directors regarding redividing the stock market into four main markets, instead of two.
EGAL reported 2Q23/24 full financial results with net income surging to EGP1.8 billion during the quarter (+69% YoY, +11% QoQ), bringing 1H23/24 bottom-line to EGP3.4 billion, which is double comparative period earnings of EGP1.7 billion. EGAL is currently trading at FY23/24e P/E of 8.2x.
SAUD (FV: EGP25.00, OW) 4Q23 net profit recorded EGP617 million (+23% y/y, +5% q/q), bringing 2023 bottom-line to EGP2,224 million (+27% y/y).
•We raise our FV from EGP17.00/share to EGP25.00/share and maintain our Overweight recommendation.
•The stock is currently trading at P/E24 of 5.2x, with ROAE of 21%.
ADIB (FV: EGP 70.00, OW) will increase its authorized capital to EGP10 billion, and its paid and issued capital to EGP6 billion, through 1:5 bonus shares, financed from 2023 net profit.
EFG Corp-Solutions, the leasing and factoring arm of HRHO, plans to provide at least EGP10 billion in financing in 2024, up from the EGP8.5 billion provided last year.
The Islamic Corporation for Private Sector Development, has signed a letter of intent with Banque Misr to provide a USD30 million line of credit to finance private sector and SME projects.
Egypt is now aiming to have renewables make up 60% of its energy mix by 2030, according to an Oil Ministry statement, as compared to a previous target of 40%.
The Israeli Energy Ministry has greenlit an agreement that will see Israel increase its gas exports to Egypt from Chevron’s offshore Tamar field starting July 2025. Israel will raise gas exports by an additional 4 billion cubic meters (bcm) annually for the next 11 years which is triple what is currently exported from the field.
The Saudi Industrialization and Energy Services Company (TAQA) is planning to tap into Egypt’s offshore oilfield services sector in 2026. The company, will invest three or four times the amount it invested in 2023 during the current year.
City Lab for Medical Analysis Company obtained the FRA approval to be registered, the FRA also approved trading the company’s shares that were temporarily registered on the stock exchange in the medium and small size companies market. The trading on the company’s stock will begin before th