Al Ahly Pharos

Pre-Trading Thoughts

March 02, 2023 Al Ahly Pharos
Al Ahly Pharos
Pre-Trading Thoughts
Show Notes

Gasoline prices in Egypt, as of today, will rise by 7-11%, in light of Brent and exchange rate movements. The cost of mazut will increase by 20% to EGP6k per ton except for food and electricity producers, who will continue to be charged EGP4.2k per ton. Diesel prices will remain unchanged at EGP7.25 per liter.

International wheat prices are heading to their lowest level in 17 months, which prompted Egypt to contract for larger quantities of the commodity. 

Banking sources reported to Alsharq Bloomberg that dollar procurement for the industrial sector in Egypt has slowed down gradually since mid-January and has now almost stopped.

Satellite imagery suggests that Ethiopia is prepping for the fourth filling of its controversial Grand Ethiopian Renaissance Dam.

The Minister of Electricity received the semi-final version of the national strategy for green hydrogen production.

Daylight saving time will be applied in Egypt end of March to rationalize energy use.

SWDY 4Q22 net profit reached EGP2.3 billion (+79% YoY, +93% QoQ), bringing FY22 net profit to EGP5.4 billion (+51% YoY). Board proposed a cash dividend distribution of EGP0.4/share.

ISPH 4Q22 net profit reached EGP54 million (-25.6% YoY, +76.7% QoQ), bringing FY22 net profit to EGP173 million (-45.2% YoY). In light of the current macro challenges and pressuring market dynamics, we downgraded our FV for ISPH to EGP2.40 per share.

PHAR 4Q22 net profit reached EGP226 million (+37.7% YoY, +99.3% QoQ), bringing FY22 net profit to EGP644 million (+31.8% YoY). Board proposed distributing dividends of EGP2.00/share.

HDBK 4Q22 standalone net profit reached EGP504 million (-8% q/q, +27% y/y), bringing FY22 net profit to EGP2,257 million (+23% y/y). Board proposed cash dividends distribution of EGP1.00/share.

AMIC released their report for January 2023, with PC sales reaching 3,429 units (-80% YoY, -38% MoM). AUTO were able to increase their market share despite the weakening market by 1.1pps YoY to reach 22.2%.

HELI reported net profit of EGP652.7 million, up 213.1% y/y, in the 18-month period ending 31 December 2022.

MNHD closed its second securitization of EGP805.5 million as part of a wider EGP3.0 billion securitization program.

POUL 4Q22 net profit reached EGP76.7 million compared to net profit of EGP60.6 million in 4Q21 and losses of EGP16.4 million in 3Q22, bringing FY22 net profit to EGP296 million (+62.4% YoY). We upgrade our FV for POUL to EGP4.00/share from a previous EGP3.40/share, while changing our recommendation to Equalweight from Overweight. 

POUL is planning to invest EGP150 million during 2023.

EFID Board declared dividends distribution of EGP0.55/share.

LCSW 4Q22 net profit reached EGP37.7 million, bringing FY22 to a net loss of EGP3.2 million, compared to a net loss of EGP36.4 million in FY21. 

Brent crude futures settled up 1% to USD84.31/bbl.

Israel announced postponing gas export plans to Egypt until April 2024 due to a technical issue. Government sources declared that this issue will not affect the current agreement to receive and liquefy natural gas from Israel.