Pre-Trading Thoughts

Al Ahly Pharos

Federal Reserve raised interest rates by 75 bps, raising rates by 300 bps since the start of 2022. Egypt's MPC committee meets today, and we hope rates would be maintained, taking into account cost-push inflation, commodity prices cooling down, the fiscal deficit, and economic growth. Our projection comes against consensus expectations for a 200 bps rate hike.

Sodic is currently not looking to acquire MNHD and is looking at other investment opportunities.

HELI plans to invest EGP297.0 million in 2H22 and EGP403.0 million in FY23, and expects revenue of EGP328.0 million in 2H22 and EGP872.0 million in FY23.

HELI is preparing to award the construction contract for the construction of the first phase of New Heliopolis, is planning to self-finance its projects in the coming period with no plans to resort to non-bank nor bank financing,

HELI has not received acquisition offers on the company.

MNHD launched units in Elect and Kinda in Taj City as part of the Cityscape Exhibition, offering payment plans of up to eight years.

MNHD is studying investment opportunities on the North Coast, is planning a securitization issuance this year, is aiming to award EGP3.0 billion in construction contracts in FY22

MNHD raised real estate unit selling prices by 5-7% during 2022.

EAST released FY21/22 bottom line for the year recorded EGP4,030 mn compared to EGP4,280 mn in the previous period, down by 6% YoY. 4Q21/22 bottom line for the quarter came in the red, recording losses of EGP222 mn due to non-recurring tax settlement expenses, whose value is not disclosed yet. EAST is currently trading at a FY22/23 P/E of 5.0x and an EV/EBITDA of 3.1x.

EAST declared in a release the rise in two of their local brands' prices Pall Mall and Viceroy to reach EGP31/pack, effective yesterday.

Expedition Investment executed the DOMT (FV: EGP6.00, OW) tender offer, acquiring a 32.9% stake (93.0 mn shares) for EGP 511.6 mn.

BINV has approved Giza Systems’ fair value study which values Giza Systems at EGP4.90/BINV share. The offer values Giza Systems at EGP4.00-4.85/ BINV share, after relevant deductions.

Pharmaceutical and nutritional supplement producing companies held a meeting yesterday to discuss the impact of the EDA decision regarding the cancellation of licenses for the production of nutritional supplements issued by the Food Safety Authority.

Anderson values AMES at EGP821.8 million (EGP52.8 per share), 8% above Tawasol- LimeVest offer and 8.6% above Yas Holding offer.