Al Ahly Pharos

- Market Overview - COMI - TMGH - CIEB - AMER - OLFI Prepared by: Mayada Amin- CETA, CFTe

IDA to offer condition handbooks on November 7-18th for six steel and iron production licenses; Move to encourage integration within local steel manufacturers; Previous offerings faced low demand Fed will begin winding down its monthly asset purchases later this month  NIR increased slightly in October, reaching USD40.849 billion CBE has repaid external liabilities worth USD15.8 billion during FY2...

- Market Overview - COMI - ETEL - PHDC - SWDY - EXPA - ORHD - AUTO - Prepared by: Mayada Amin - CETA, CFTe

PMI is slightly down in October to 48.7 from 48.9 in September, due to stock shortages, output falling, and higher inflation The government is setting up a new committee on import substitution and growing domestic manufacturing CLHO is in negotiations with Al-Marasem International for establishing a hospital in New Cairo, pending Ministry of Health approvals; CLHO is currently trading at 2022f P/E...

-Market Overview -HRHO -SWDY -EMFD -JUFO -DOMT -OLFI -RAYA -CCAP Prepared by: Mayada Amin - CETA, CFTe

Egypt urea index was up 9% w/w to USD900/ton (ABUK, MFPC, EKHO) Caustic Soda Prices climbed to four years high, recording USD752/ton (MICH) Steel/Iron Ore spreads are at the USD445 mark, rising by 1% WoW EGAL released 1Q21-22 bottom line recorded EGP305 million up from EGP151 million of losses in 1Q20-21 but down by 39% QoQ; Lo wer than our expectations; EGAL is currently trading at annualized P/E...

-Market Market -TMGH -SPMD -OLFI -Prepared by: Mayada Amin- CETA, CFTe

The Saudi Ministry of Finance deposited USD3 billion with the CBE and extended the term of another USD2.3 billion in previous deposits NFAs of the banking system increased by EGP15.7 billion (around USD1 billion) at the end of September 2021, to record EGP174.53 billion (USD11.12 billion) All eyes are on the Fed ahead of its two-day meeting, expected to announce the winding down of its USD120 bn a...

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

Government raised gas cost for the industrial sector to USD5.75/MMBtu Fertilizer companies have demanded an increase in the prices of supplying subsidized fertilizers from EGP2,900/ton to EGP3,480 ABUK’s CEO: Company’s financial advisors are to re-study the feasibility of its projects after the hike in natural gas prices SKPC 3Q21 net profit hit EGP75 million (+13%YoY, -3%QoQ); SKPC had undergone...

 The government has decided to raise the gas cost for the industrial sector (Steel, Ceramics, Cement, Fertilizers, and Petrochemicals) to USD5.75/MMBtu, except for companies whose cost is calculated based on a formula tied to selling prices.  - While the gaps between new FVs and current market prices are not wide, because stocks had initially failed to reflect the profitability spike, the market w...

- Market Overview - COMI - JUFO - DOMT - FWRY - PHDC - Prepared by: Mayada Amin - CETA, CFTe

-We expect the MPC to keep rates unchanged today  -How Egypt calculates the withholding tax on government securities is what’s been delaying making the country’s debt Euroclearable  -ETEL 2022 budget: Early double-digit revenue growth, in line with our estimate of 12%; EBITDA margin in the mid to high thirties, broadly in line with our estimate of 34%; In-service capex-to-sales ratio in the mid-tw...

- Market Overview  - COMI - EGCH - JUFO - CIEB - FWRY Prepared by: Mayada Amin - CETA, CFTe

-CLHO signed an agreement to transform a brownfield project located in East Cairo into a 400-bed medical facility; Estimated value of the (400-bed) transaction is around EGP3.7 billion (EGP2.32/CLHO share); CLHO is currently trading at 2022f P/E of 15.5x and 2022f EV/EBITDA of 9.2x -MNHD acquiring MINKA given that MINKA’s two projects are on the Taj City land plot and that MINKA sells fully-finish...

- Market Overview - DOMT - JUFO - OLFI - ABUK Prepared by: Mayada Amin - CETA, CFTe

El-Sisi announced that he will not be extending the national state of emergency  MoF will not make any budget amendments to respond to higher global energy and food prices MNHD appointed Abdallah Sallam as its new CEO; approved acquiring MINKA Developments from the Sallam family and an EGP374.4 million capital increase through a rights issue Tour operators in Russia are reporting record demand for...

- Market Overview - COMI - MNHD - ABUK - SWDY - EFIC - MICH - ORWE Prepared by: Mayada Amin - CETA, CFTe

-e-finance looking to list two of its subsidiaries (Khales and e-Cards) on EGX; plans to apply for a digital banking license once the CBE issues the executive regulations of the Banking Act; plans to expand into Arab and African countries  -ETEL secured a new USD500 mn medium-term syndicated loan for capital expenditure and refinance existing facilities -ADIB obtained regulatory approval to launch...

- Market Overview - COMI - ETEL - ESRS - ORAS - JUFO - ORHD - PORT Prepared by: Mayada Amin - CETA, CFTe

-US Federal Reserve: Supply chain woes likely to last well into next year; Expects to begin tapering off its bond-buying soon -MPC week: We expect rates to be maintained in light of local inflation trends and high real rates -Fitch Ratings has affirmed Egypt's IDR at 'B+' with a Stable Outlook -Egypt and Israel are considering connecting their gas grids through a new USD200 mn onsho...

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

e-finance will begin trading today on EGX under the symbol EFIH.CA Cabinet approved a draft law to establish Digital Egypt Fund to develop and speed up digital transformation  ESRS raised local prices to EGP15,000 per ton, up from EGP14,600 announced mid May 2021 ORAS looking at potentially acquiring a Sawiris family-owned entity operating in equipment import, distribution and services HELI is pla...

- Market Overview  - COMI - FWRY - EGTS - HELI - TMGH - AUTO - EGCH - EXPA - ESRS Prepared by: Mayada Amin - CETA, CFTe

Commodity update:  ·         Brent is at USD86/bbl, +3% WoW ·         Polypropylene prices at USD1,350/MT, +5% WoW  ·         Copper prices increased to USD10,281/tonne (+10% WoW) ·         Aluminum prices rose 7% WoW to record USD3,172/tonne ·         Steel/Iron Ore spreads are at the USD429 mark, rising by 8% WoW ·         Retail cement prices in Egypt at EGP1,000 -1,100 per tonne ·         Ther...