Pre-Trading Thoughts

Al Ahly Pharos

Prime Minister: Egypt is not immune from the squeeze on commodities, rising shipping costs and higher input costs seen worldwide. The government will set out a clear future direction on subsidies when preparing next fiscal year’s state budget in March 2022.

Egypt aims to increase Egyptian exports by 15% annually, to reach about USD100 billion.

El Sisi inaugurates first phase (100k feddans) of the revived Toshka project.

89 local contractors have qualified to participate in El-Dabaa nuclear power plant. ORAS, SWDY and ETRS should get awards within the project.

Eight companies are reportedly competing to implement a 30-megawatt solar power plant in the New Administrative Capital, including ORAS.

SWDY is competing for an 8MW solar-power operated bus canopy in the New Administrative Capital.

Trade Ministry has finished drafting a plan to replace tuktuks with vehicles similar to minivans. It should also require minivans to be registered as public transport vehicles, but would lower the minimum age for a license to 16. Positive for AUTO.

HRHO’s leasing and factoring arm has signed an EGP750 million sale and leaseback agreement with MNHD, for MNHD’s Cobalt District in Taj City Development, as a means to generate liquidity,

EAST commented on the closure of Abu Tig and Talbiya factories, which specialize in molasses production, noting that an official decision has not been made in that regard. MD noted that capex for current FY is EGP700 mn, compared to EGP350 mn in last FY.

Qalaa Chairman and Founder Ahmed Heikal: Qalaa Holdings is looking to expand its investments in African mining and energy firms, including in Tanzania, Mozambique and Ghana, up from the current USD 500 million.

MCI Healthcare acquired 23% (367.83 million shares) of CLHO (FV: EGP6.40, OW) at EGP5.00/share, in a transaction worth EGP1.84 billion.

Macro Group Pharmaceuticals (MCRO) is expected to list on EGX in 1Q22, after getting FRA approval, according to local media.

MTIE (FV: EGP9.60, OW) participated in its subsidiary’s “Basata” capital increase with EGP25.0 mn, maintaining its ownership at 49.9%.

ALCN confirmed that it has a legal dispute with Canal Ports due to the delays in the execution of Pier 96 project and that it is requesting compensation of EGP32.6 million, in forgone revenues due to project delays. The figure published on Thursday in the local media was incorrect.

RAYA BoD approved the distribution of dividends for the period ended 9M21, with a DPS of EGP0.06/share, implying a payout ratio of 20.55% and a DY of 2.5%.

[Correction] CAED, a subsidiary of CIRA, announced the dates for its DPS of EGP1.00/share (DY 6.4%), with record date of December 23 and distribution date of December 28.