Pre-Trading Thoughts

Al Ahly Pharos

Saudi Public Investment Fund’s (PIF) telecom infrastructure subsidiary, Tawal, is looking to buy several telecom towers from Vodafone Egypt and another undisclosed telecom company.

Supply Minister has proposed hiking the price of subsidized sugar to EGP18 from EGP12.6 per kilo. The proposal has not been approved yet by the government.

The CBE will auction USD500 million worth of one-year USD-denominated treasury bills with the submission deadline penciled in for 11 AM today.

A number of foreign companies are examining investment opportunities in the healthcare sector.

The Ministry of Transport, represented by the Egyptian National Railway Authority, will begin evaluating five Egyptian and international alliances, with a total of 12 companies, competing to seize business with a total value approaching EUR403 million.

JUFO reported outstanding 1Q24 net profit of EGP479 million (+191.8% YoY,+237.6% QoQ). JUFO is currently trading at P/E24 of 9.6x .

We upgraded our FV for ORWE to EGP30.01/share, maintaining our Overweight recommendation. ORWE is currently trading at P/E24 of 4.8x.

DSCW reported 1Q24 attributable net profit of EGP118 million (+613.4% YoY, -3.1% QoQ). DSCW is currently trading at P/E24 of 5.5x.

AMIC released its numbers for April 2024, showing an increase in auto market sales by 11.0% YoY to record 5.7K units driven mainly by a jump in PC sales by 65.5% MoM and 18% YoY.

HELI (FV: EGP18.84, OW) reported 1Q24 revenue of EGP239.3 million, up 163.2% y/y and down 98.4% q/q, and 1Q24 net profit of EGP748.5 million, up 3755.4% y/y and down 90.4% q/q.

The Iraqi Ministry of Health is holding discussions with Egyptian contractors to take part in revamping 12 hospitals with an estimated cost of USD480 million.

EFIC released 1Q24 consolidated net income of EGP428 million (+93% YoY, +132% QoQ). EFIC is currently trading at a PE24 of 4.4x.

CCAP shareholders have until 5 June to subscribe to the first phase of the company’s debt buyback. Shareholders who wish to participate are required to pay EGP0.6776 per share.

OPEC+ agreed to extend production cuts until 2025 — cuts of 3.66 million barrels a day will be extended until the end of 2025, while voluntary cuts of 2.2 million barrels a day will run through the end of Sep.

North Petroleum International Company (NPIC), the Egyptian arm of China’s Zhen Hua Oil, will invest some USD78 million to increase production from its Western Desert’s East Ghazalat concession.

British energy company Harbour Energy signed an agreement to finalize the acquisition of Wintershall Dea’s upstream assets in Egypt.

SWDY Board of Directors appointed BDO Keys Financial Consulting as an independent financial advisor to prepare a FV Report for the stock in light of FRA’s decision on 30 May 2024.

FAIT 1Q24 consolidated net profit recorded an impressive EGP6.2 billion (+179% y/y, +851% q/q). We keep our Equalweight recommendation on FAIT on an updated FV of EGP40.00/share. The stock is currently trading at P/E24 of 3.3x.

EFG Hermes One, HRHO’s subsidiary, has signed a partnership agreement with PayTabs Egypt.
Weekly Commodities Update

Last Price | WoW Change, %
Brent, USD/bbl | 81.6 | -0.6%
Diesel-HSFO Spread, USD/ton | 267.6 | -3.5%
Egypt Urea, USD/ton | 325.0 | 2.4%
Polyethylene, USD/ton | 1,030.0 | 0.0%
Polypropylene, USD/ton | 985.0 | 1.1%
Iron Ore 65%, USD/ton | 132.9 | -1.8%
Steel/Iron Ore Spreads, USD/ton | 378.1 | 2.0%
LME Aluminum Cash Price, USD/ton | 2,607.1 | -0.4%
Egyptian Retail Cement, EGP/ton | 2,039.0 | -0.4%
Steam Coal FOB Newcastle Australia, USD/ton | 142.4 | -0.3%
SMP, USD/MT | 2,629.0 | 0.0%