Al Ahly Pharos Al Ahly Pharos

The government plans to start collecting taxes on capital gains incurred from trading EGX-listed financial securities starting March-April 2025, according to a cabinet statement.
Kuwait’s Alghanim International is reportedly looking to inject USD300 million worth of investments in the Berenice maritime port. 
China’s state-owned Xinxing Ductile Iron Pipes Company is planning to follow up its under-construction iron pipes factory in the TEDA industrial park with USD250 million of future investments in the park.
The Cabinet ministers approved a request from Tunisian automotive cable manufacturer Coficab to establish an automotive cable and electrical factory, with investments up to USD88 million.
The Cabinet ministers approved a proposal for Egypt to join the African Trade and Investment Development Ins. (ATIDI) in a bid to boost trade with other African nations.
The US Federal Reserve decided to keep interest rates unchanged at 5.25% and 5.5%.
The sale of the National Bank of Egypt and Banque Misr’s combined 26.1% stake in AMOC could raise between EGP3.5-3.8 billion. The sale expected to close by the end of 1H24, according to local press.
ABUK released 3Q23/24 unaudited financial indicators. Net profit increased by 46% YoY and 303% QoQ to record EGP8.12 billion during 3Q23/24. On a nine-months basis, net profit declined 3% YoY to EGP12.14 billion. ABUK is currently trading at a FY23/24e PE of 6.2x and EV/EBITDA of 5.8x.
EFIC released 1Q24 unaudited standalone financial indicators. Net profit declined 19% YoY and declined by 80% QoQ to EGP70.9 million.
CIEB (FV: EGP38.20, OW) released 1Q24 financial results. Consolidated bottom-line stood at EGP2,289 million (+69% q/q, +87% y/y). We reiterate our Overweight recommendation and update our FV from EGP33.00/share to EGP38.20/share. The stock is trading at P/E 2024 of 3.0x and P/B 2024 of 1.1x.
AIH OGM approved increasing the company’s paid in capital to EGP467 million from EGP425 million (an increase of EGP42 million), through 1:10 bonus shares, financed from 2023 profits.
ORAS-led consortium received the land allocation for its 3 GW wind farm in West Sohag.
SWDY inked an MoU with Swiss tech firm Bühler Group and Jordan-based firm IBC Group to work towards localizing the manufacture of grain silos in Egypt. 
MASR (FV: EGP5.24, OW) launched its Sheya project which generated sales of EGP5.1 billion. Sheya is situated on a land area of 0.2 million sqm in Sarai.
According to local media, CIRA aims to inject approximately EGP1.5 billion over the next two years into expansions, primarily focused on the university sector.
Egypt's production of steel rebars surged to 2.2 million tons in 1Q24, 24% higher YoY.

Market Overview 
ADIB
BTFH
SWDY
ETEL
FWRY
EFIH



Prepared by: Mayada Amin- CFTe, CETA

Banks' net foreign assets position improved significantly by c.78% from a net liability position of USD13.2 billion in February to a net liability position of USD2.8 billion in March.
Finance Minister now expects the country’s primary surplus to come in at 5.75% by the end of the current fiscal year.
China’s state-owned Xinxing Ductile Iron Pipes Company has begun construction on a USD146 million ductile iron pipe factory in the TEDA industrial park, according to an SCZone statement. 
The Ministry of Communications aims to increase digital exports by 30% by the end of this year to exceed USD8 billion.
Egypt aims to increase industrial investments by about 10% during 2024 to reach at least USD3.6 billion.
The General Authority of the Suez Canal Economic Zone signed with the Thai company Hi-Tech a contract granting a usufruct for an area of 64k sqm in the Qantara West area to build a sportswear factory with investments amounting to USD20 million.
Amr El-Kady, CEO of the Tourism Promotion Authority, revealed its intention to launch a major marketing campaign to promote Egyptian tourism in 12 to 14 markets in May.
Banque du Caire will receive a line of financing worth USD25 million from the International Islamic Trade Finance Corporation and the Saudi Export-Import Bank to help Saudi SMEs expand their presence in Egypt and encourage non-oil exports to Egypt.
SKPC released 1Q24 unaudited financial indicators. Net profit grew 7% YoY and declined by 13% QoQ to EGP559 million in 1Q24. SKPC is currently trading at 2024e PE of 6.6x and EV/EBITDA of 4.7x.
SKPC's BoD also approved stock dividends of 1:5, increasing the company's issued and paid-in capital from EGP1.5 billion to EGP1.8 billion distributed over 907 million shares and financed from 2023 profits.
SKPC is distributing cash dividends of EGP1.25/share distributed over two tranches. The first tranche worth EGP0.75/share will be distributed on 29 May 2024, while the second tranche worth EGP0.50/share will be distributed on 25 September 2024. the dividend will be distributed for shareholders on record on 26 May 2024. Implied dividend yield is 4.6%.
EGAL reported indicators for 3Q23/24 with net profit after tax coming in at EGP1.8 billion, almost flat QoQ and 19% lower YoY. Meanwhile, 9M23/24 bottom line surged to EGP5.2 billion (+33% YoY). EGAL is currently trading at FY23/24e P/E of 4.6x and EV/EBITDA of 3.8x.
Egypt's total iron and steel exports dropped 8% YoY to USD478 million in 1Q24.
HELI (FV: EGP18.84, OW) signed a contract with Middle East for Real Estate Development and Investment to co-develop an 894 feddan land plot in New Heliopolis, with a minimum guarantee to HELI of EGP23.8 billion. This project is in addition to the 865 feddan project in New Heliopolis that is also to be co-developed by Middle East for Real Estate Development and Investment.
AMIC released its numbers for March 2024, showing a drop in PC sales by 53% MoM and 41% YoY to record 2.8k units, bringing PC sales to 13.4k units in 1Q24 (+9% YoY).
COMI intends to borrow USD50 million during 2H24 from the European Bank for Reconstruction and Development with the aim of financing finance green projects in Egypt.
Businessman Ahmed Tarek is reportedly studying investing USD100 million in the healthcare sector over the coming three years and is considering acquiring a 20% stake in an EGX-listed pharmaceutical company, according to local press.

Market Overview 


Prepared by: Mayada Amin- CETA, CFTe

The CBE will start handing out letters of credit (LCs) to importers of non-essential goods at the start of June.
The government has cleared USD20 billion worth of goods across the country’s ports since the beginning of 2024, a source at the Customs said.
Prime Minister stated during the World Economic Forum meeting in Riyadh that it costs Egypt USD10 billion annually to host 9 million refugees.
Japan has pledged USD230 million in financing to support the state budget, Finance Minister Mohamed Maait said.
The Egyptian Tax Authority confirmed that it has not issued any directives or instructions during the previous period to date regarding the application of the tax on capital gains regarding securities on the stock exchange.
The Development Finance Corporation, affiliated with the federal government of the US, is considering financing the Actis Fund’s acquisition of the Jebel El-Zeit wind station.
The CBE sold USD997.6 million worth of one-year treasury bills in an auction, with an average return of 5.149%.
The WB revealed that Egypt's national poverty rate rose in 2022 to 32.5% from 29.7% in FY2019-20 fiscal year.
Egypt plans to bid for four desalination plants at a total cost of USD350 million on the North Coast near Ras El Hekma in mid-July, according to local media. It is worth highlighting that ORAS and SWDY were among the prequalified bidders.
TMGH (FV: EGP73.80, OW) Board approved a share buyback of up to 10.0 million treasury shares during the period 29 April 2024 to 29 May 2024.
According to local media, HELI (FV: EGP18.84, OW) is planning to select the co-developer of its 580 feddan New Heliopolis land plot in around two weeks and is negotiating to have the down payment paid to HELI increased to EGP1.0 billion. The project is expected to generate revenue of at least EGP35.0 billion, with a minimum gurarntee to HELI of at least EGP17.0 billion.
AMOC released 3Q23/24 unaudited financial indicators. Net profit increased by 315% YoY  and declined by 21% QoQ to EGP393 million in 3Q23/24. On a nine-month basis, net profit before minority interest grew by 19% YoY to EGP1.31 billion in 9M23/24. AMOC is currently trading at FY23/24e PE of 4.7x and EV/EBITDA of 3.0x.
According to local media, SUGR net profit declined by 33% YoY in 1Q24 to EGP216.8 million compared to EGP323.8 million in 1Q23.
Ashry Steel is adding two new production lines worth USD150 million to its business that will be completed in ten months to scale up the production of iron and other products and increase total capacity by 30%, according to local media.
Egypt's total cement exports dropped 31% YoY to USD165 million in 1Q24. 
Beltone Holding subsidiary, Beltone Investment Holding (BIH), will launch a USD100 million private credit platform geared towards the needs of Egyptian exporters as well as companies with overseas operations.
Investment management firm Act Financial wants to either acquire or merge with another entity. A number of Saudi and Emirati investors have already expressed interest in taking part in the transaction.
HRHO has issued EGP600 million of debt to its subsidiary Hermes Securities Brokerage (HSB) in the form of a senior unsecured short-term note. 

Market Overview
COMI
ADIB
CCAP
SWDY
ORWE
ALCN
CLHO


prepared by: Mayada Amin- CETA, CFTe