Pre-Trading Thoughts

Al Ahly Pharos

Finance Minister Ahmed Kouchouk said that while in Washington for the IMF and World Bank’s annual meetings he had expressed the government’s expectation that it would have “positive and constructive discussions” with the Fund during the fourth review of our loan program. The review, which if successfully passed will unlock USD 1.3 bn in funds, had been previously expected to commence after the IMF annual meetings wrapped up this past Saturday.

The EGX is considering allowing sole proprietorships to be listed and traded on the bourse without having to become joint-stock companies — a change that would require an amendment to the Capital Market Act, Al Borsa quotes EGX boss Ahmed El Sheikh as saying.

There might be a new Emirati industrial zone coming to the new capital, with the Administrative Capital for Urban Developments (ACUD) set to ink an MoU with an unnamed company from the UAE for a 500-feddan project in the coming days, ACUD Chairman Khaled Abbas said. ACUD is also in negotiations with a Turkish company over a similar project.

The Minister of Supply said that the ministry will receive a shipment of Russian wheat amounting to 430,000 tons starting next November. He added that mixing corn with wheat in bread production is currently being studied.

Prime Minister expressed to Manfred Weber, Chairman of the European People Party in the European Parliament that he is looking forward to receiving EUR1 billion before the end of this year, representing the first tranche of the EUR5 billion financial support package that the EU will provide to support Egypt's economy.

Sumou Holding Group subsidiary Adeer plans to set up an Egyptian real estate investment fund in partnership with Saudi fund manager said.

AMOC released 1Q24/25 unaudited financial indicators posting a net profit growth of 14% YoY (+11% QoQ) to EGP479 million with a NPM of 5.4%, compared to EGP421 million and a NPM of 6.0% in 1Q23/24 and versus EGP432 million and a NPM of 3.9% in 4Q23/24. AMOC is currently trading at a FY24/25e PE of 4.0x and EV/EBITDA of 2.1x.

Nas Investment Holding acquired a 32.4% stake in EgyFert (Samad Misr), purchasing 3.1 million of phosphate exporting company MidFert Misr’s shares in the fertilizer producer.

MASR achieved strong 3Q24 sales of EGP15.8 billion, up 65.5% y/y and 163.5% q/q, bringing 9M24 sales up 147.0% y/y to EGP36.7 billion.

According to local media, HELI 1) intends to repay the EGP700.0 million remaining part of its loan until 2026, 2) receives around EGP350.0 million annually from its SODIC East co-development with OCDI, and 3) plans to launch a 400 feddan plot in New Heliopolis.

CICH is conducting a promotional tour for the United bank's 30% stake in the new IPO that's to take place next month. Almost 25% of the bank's shares will be in private placement.

China’s state-owned auto manufacturer BAIC Group has inked an agreement with local agent Alkan Auto to establish an EV factory with the start of production penciled in for the end of 2025, according to local media.

ETEL secured a seven-year syndicated credit facility of EGP18 billion to refinance its existing short-term EGP facilities.

The Federation of Egyptian Industries’ pharma division stated that Pharma sales during 3Q24 increased by 50% on a yearly basis after the increase in prices.