Pre-Trading Thoughts

Al Ahly Pharos

Maersk has reshuffled routes citing risks to seafarers and cargo on Red Sea.

Red Sea disruptions, surging Chinese demand, and supply outages are boosting competition for oil supplies that do not have to transit via the Suez Canal, Reuters reported.

French electrical equipment manufacturer Schneider Electric discussed potential electricity, water abstraction and greenhouse projects that rely on solar power with officials from the South Sinai governorate.

The WB is studying a new program with Egypt for ownership of government companies. Egypt is negotiating with the WB on 8 other programs.

The volumes of Israeli gas imported by Egypt exceeded the pre-Israeli war on Gaza level, as they rose during January by 15% MoM to record about 1.15 billion cubic feet per day.

The Ministry of Transport intends to repeal the temporary registration of the Port Said and Damietta Container Handling Companies on the EGX, preferring to sell shares to a strategic investor.

Egyptians brought 3.8 tons of gold from abroad in the eight months following the government’s decision in May.

CIRA (FV: EGP18.24, OW) released 1Q23/24 financial showing a squeeze in bottom line by 7.3% YoY to reach EGP99 mn due to the rising interest expenses. CIRA is currently trading at a FY24 P/E of 22.9x and an EV/EBITDA of 8.0x.

CIRA has received the go-ahead from the Higher Education Ministry for Cairo Saxony University to have , its first academic year in September.

CIRA decided to merge 3 of its own companies to include the schools these companies run under its umbrella and increase the company's equity value.

SUGR (FV: RGP98.0, OW) released 4Q23 financial indicators. 4Q23 bottom-line recorded EGP220 mn (+91% YoY, -30% QoQ), bringing FY23 net profit to EGP1,624 mn (+91% YoY). SUGR is currently trading at a FY24 P/E of 6.8x and an EV/EBITDA of 4.7x.

HELI (FV: EGP18.84, OW) signed a co-development agreement on 865 feddans in New Heliopolis with Middle East for Investment and Touristic Development leading to minimum guaranteed revenue of EGP23.0 billion and expected revenue of EGP39.7 billion.

ORHD (FV: EGP20.38, OW) plans to open the commercial phase of Fanadir Marina in El Gouna in March or April 2024, according to local press.

HELI (FV: EGP18.84, OW) plans to offer 460 units in New Heliopolis for sale.

The Trade and Industry Ministry is studying canceling the anti-dumping duties on reinforced steel imports in light of soaring steel prices.

The Chamber of Pharmaceutical Industry at the Federation of Egyptian Industries addressed the Cabinet to direct the Central Bank to source USD150 million to release part of the raw materials held at the ports so that pharma companies can operate at full capacity.

The CBE has approved British multinational lender Standard Chartered’s request for a license to set up a branch in Egypt.

HRHO's ValU enters into a partnership agreement with “Bosta” to enhance digital payment solutions to its customers.

Egypt’s digital exports stood at USD6.2 bn in 2023, up 26.5% YoY.