Pre-Trading Thoughts

Al Ahly Pharos

Egyptian pound has weakened on Tuesday where its 12-month non-deliverable forward (NDF) fell to a fresh all-time low to EGP38 per dollar, Bloomberg Al Sharq reported.

According to Al-Mal newspaper, the government received foreign offers to acquire a 20-30% stake in Beni Suef Electricity. However, the government is yet to decide whether it will be offered to strategic investors or in IPO on EGX.

The Africa Finance Corporation (AFC) has identified an immediate project pipeline of investments worth more than USD1 billion in Egyptian infrastructure projects. The projects are in the renewable energy, natural gas, heavy industries, tech, telecoms, banking, and finance sectors.

According to Al-Borsa newspaper, Egypt and Qatar are planning to launch a joint investment fund with an initial size worth USD1 billion.

Suez Canal Authority targets increasing the canal’s revenues from USD8 billion in 2022 to USD9 billion in 2023, a 12.5% YoY growth. The canal’s revenues reached USD1.5 billion during January and February 2023, compared to USD1.1 billion during the same months of 2022.

EMFD (FV: EGP5.01, OW) Net profit in 4Q22 reached EGP1.7 billion, up 27.5% y/y and down 8.5% q/q, taking FY22 net profit to EGP6.6 billion, up 59.3% y/y.

RMDA reported 2022 financial results showing: Net profit came in at EGP253 million in 2022, a significant increase of 40.4% YoY, slightly lower than our estimate of EGP266 million. On a quarterly basis, 4Q22 net income stood at EGP54 million (-26.3% YoY, -25.2% QoQ). RMDA is currently trading at 2023f P/E of 6.8x and EV/EBITDA of 5.0x.

Elevate Healthcare fund is looking to fully acquire clinical radiology and lab service provider Nile Scan & Labs for EGP500 million. The company is expected to close the deal in April.

FWRY reported 4Q22 financial results showing: Attributable net profit of EGP116 million (+317% YoY, +61.6% QoQ). During FY22, attributable net profit came in at EGP240.1 million (+35.5% YoY). FWRY is currently trading at 2023f P/E of 65.0x and EV/EBITDA of 18.6x.

The CBE has highlighted the guidelines for the new financing initiative released by the MoF at an interest rate of 11% targeting companies operating in the industrial, agricultural, and renewable energy sector. The total value of the initiative is EGP150 bn, where EGP140 bn is directed towards financing companies’ working capital and EGP10 bn to be directed to finance equipment and tool’s purchases. The value of the initiative decreases by 20% annually, and its maximum timeframe is 5 years. Funding provided for a single individual is capped at EGP 75 mn and a total of EGP 112.5 mn per individual and all related parties. Moreover, the CBE warned using the facilities granted in repaying any other debts, adding that the banks‘ returns participating in the initiative will be 1% above the CBE rate while the MoF will bear the difference.

FRA stated in a release that it received National Paints Holding’s offer to acquire 100% to 75% of Pachin’s shares (24 million) with a price of EGP34/share, up from its initial bid of EGP29.00/share that was submitted in November 2022.

EKHO will hold its general assembly on 30 March 2023 to approve FY22 financial results as well as a dividend distribution of 11 cents per share, implying a dividend yield of 9%.

Representatives of Abu Dhabi Ports discussed operating berths in ports and setting up logistics zones in the Suez Canal Economic Zone during talks with the zone head, according to SCZone statement.

The River Transport Authority - affiliated with the Ministry of Transport - is in the final stages to activate the cooperation agreement concluded with the Abu Dhabi Ports Group and the Egyptian Group for Multi