Al Ahly Pharos

- Market Overview - ABUK - AMOC - CCAP - ORAS - SKPC - Prepared by: Mayada Amin, CETA, CFTe

Egypt has held talks with the EU over shipping more natural gas to Europe amid conflict in Ukraine Ernst & Young: Mergers and acquisitions in Egypt recorded USD7.7 billion in 2021 GASC bought 180,000 tons of Romanian wheat in a tender indicating that supply issues may be abating Ghazl El-Mahalla will debut on the EGX at the beginning of April Ethiopia will start its first electricity generatio...

- Market Overview  - ABUK - CIEB - HELI - HRHO - MBSC - prepared by: Mayada Amin, CETA, CFTe

Egypt's real GDP grew 9% YoY in 1HFY2021/22 compared to 1.35% a year earlier The IPOs and secondary stake sales of a handful of state companies under the privatization program are moving forward Egypt will be receiving newly announced additional natural gas exports from Israel via a new route through Jordan A consortium of UAE-based Metito Holdings, Scatec Solar, and ORAS is in talks with Egy...

- Market Overview - COMI - CCAP - MTIE - MCQE - ABUK - EKHO - SPMD - Prepared by: Mayada Amin, CETA, CFTe

PHDC achieved solid FY21 sales despite underwhelming 4Q21 sales. 4Q21 sales reached EGP4.4 billion, down 19.0% y/y and down 14.1% q/q, bringing FY21 sales to a company record high of EGP17.3 billion, up 35.4% y/y. We forecast FY22 sales of EGP18.2 billion in our EGP3.33/share valuation. HELI reported strong 4Q21 results, with net profit amounting to EGP91.3 million, compared to net loss of EGP43.3...

- Market Overview - CCAP - AMOC - FWRY - HRHO - ORWE - OLFI - Prepared by: Mayada Amin, CETA, CFTe

CBE decided to stop working with the Inward Documentary Collection (IDC) in all importation transactions and to work with Letters of Credit (LC) instead; Import monitoring and higher database and FX efficiency is the reason Weekly Commodities Update Oil prices surged to USD95.80/bbl Retail cement prices in Egypt inched up, for the second week in a row, to range between EGP1,200 -1,250 per ton Ther...

- Market Overview - COMI - ESRS - AMOC - EKHO - HELI - Prepared by: Mayada Amin - CETA , CFTe

Pressure points for Egypt from a potential Russian Ukrainian war include oil prices, wheat prices, and tourism arrivals. In global conflict situations, AMOC is a stock that rises because of oil prices and spreads, and CCAP should join hands (ERC).  The overall budget deficit in 1HFY21/22 increased to EGP285 billion, equivalent to 3.99% of GDP Trade deficit decreased by 63.1% YoY during November 20...

- Market Overview - COMI - EKHO - HRHO - Prepared by: Mayada Amin, CETA - CFTe

EKHO| Buy Ambition, Diversity, and Strategy. EKHO expects to register total profits of USD170m in 2021 and targets growth rates of 20-25% based on future expansion plans; Sprea will double its production capacities; Nat Gas will benefit from Haya Karima Initiative; Kahraba will add 40 MW to its capacity; Alex Fert’s net profit shall be within USD40-50 mn; ONS profits c. USD30 mn; Delta & Mohan...

- Market Overview  - COMI - SPMD - EMFD - CICH - HELI  - SWDY - EKHO - EFIH - Prepared By: Mayada Amin - CETA, CFTe

FAB’s NBO on HRHO| Due diligence will take about 60 days and may extend for an additional 60 days; EFG Hermes will hire an independent financial advisor to determine the fair value; FRA stated that the upcoming acquisition offer from First Abu Dhabi Bank will require submission to the authority’s board of directors for approval; At EGP19.00, HRHO's transaction implies 2022 c.10-11x P/E for 20...

- Market Overview - HRHO - EFIH - AUTO - OIH - Prepared by: Mayada Amin - CETA,  CFTe

- EKHO | Buy Ambition, Diversity, and Strategy. EKHO expects to register total profits of USD170m in 2021 and targets growth rates of 20-25% based on future expansion plans; Sprea will double its production capacities; Nat Gas will benefit from Haya Karima Initiative; Kahraba will add 40 MW to its capacity; Alex Fert’s net profit shall be within USD40-50 mn; ONS profits c. USD30 mn; Delta & Mo...

- Market Overview - COMI - Prepared by: Mayada Amin - CETA, CFTe

HRHO| Buy the Shift to Full-Fledged Banking and Non-Banking Services and Improved Sustainability in Earnings Growth; Lending businesses at 50% of bottom-line in 2 years (up from c.37% in 9M21) should improve group margins with its higher NPM (c.27%) vs IB platform NPM (25%); Microfinance and consumer finance services compromise 40% of FV; ValU stake sale would reprice and unlock the unrealized val...

- Market Overview - COMI - CIEB - HELI - MTIE - ESRS - HRHO - SPMD - SKPC - Prepared by: Mayada Amin - CETA, CFTe

Egypt’s NIR inched up in January by USD45 million to record USD40.98 billion Minister of Trade and Industry issued a decision to establish a council for the textile industries, which aims at developing the local textile industries  The EGX has shuffled its list of securities eligible for same-day trading, margin trading and short selling  MTIE announced signing a distribution agreement with Apple...

- Market Overview - COMI - CCAP - CIEB - ESRS - SWDY - HRHO - Prepared by: Mayada Amin - CETA, CFTe

No major changes for MSCI Egypt Index are expected this time around. MSCI will announce rebalancing results on Wednesday, February 9  Inflation figures for Egypt will be released on February 10; Expect the figure to come close to 7% YoY, compared to 5.9% in December 2021 The CBE decided to keep interest rates unchanged The government hiked fuel prices for the fourth time in a row by EGP0.25 per li...

- Market Overview - AUTO - CCAP - CIEB - FWRY - HELI - Prepared by: Mayada Amin - CETA, CFTe

"It is not called GB Auto; It is called GB Capital" The valuation range for GB Capital is EGP6.00-EGP7.50/share, which is c.4x the auto segment; The auto segment is worth EGP1.80, representing c.20-23% of the total stock value; The potential transaction on MNT-Halan should remind the market of such valuation and how discounted the stock is With Diesel-HFSO spreads at more than USD330, re...

- Market Overview - ABUK - AMOC - CIEB - CLHO - COMI - ESRS - HRHO - MFPC - HELI - Prepared by: Mayada Amin - CETA, CFTe