Al Ahly Pharos

Pre-Trading Thoughts

May 09, 2023 Al Ahly Pharos
Al Ahly Pharos
Pre-Trading Thoughts
Show Notes

-SUGR Pitch| Stock price has been witnessing a sharp incline, recording 66% rise YTD. The movement only proves how highly correlated the company’s stock price to FX rates and global sugar commodity prices.  With speculations of another currency devaluation within 2Q23, along with the consensus estimates for global sugar prices rising by an average of 11% throughout 2023-2027 by early May compared to the estimates of early January, the stock’s hike is self-explanatory. Scenario analysis shows FV range of EGP45-60. Check tables for details. 

-The Finance Ministry is now targeting a fiscal deficit of 8% of GDP in FY22/23 and 7% in FY23/24, in light of commodity prices, interest rates, and social spending spikes. 

-Suez Canal revenues jumped to USD904.5 million in April 2023, compared to USD630.5 million in April 2022.

-A number of foreign and local investment alliances have expressed interest to acquire Safi or Wataniya, the two military affiliates. The government will receive the bids in May. 

-The “Expat Car Importing Initiative” is coming to an end, with USD713 million in proceeds.

-BINV alongside the Sovereign Fund of Egypt (SFE) Healthcare & Pharma Subfund have launched a new company, EZ International, in partnership with El-Ezaby Pharmacy, offering logistics and management services for pharmacies, as well as pharmaceutical distribution and trade services. 

-OIH has become a strategic investor in a local e-mobility company, BlueEV. It operates a network of lithium-ion battery swapping stations for two- and three-wheeled electric vehicles.

-COMI has discontinued its three-year, 18-20% annual-rate certificates of deposit, replacing them with 19-17% ones. 

-Chevron, Shell, and Israeli energy firm NewMed Energy have started drilling at Cyprus’ Aphrodite field, according to a statement from NewMed. 

-TMGH declared cash dividends of EGP0.19/share (DY of 2.0%). Record date is 28 May 2023. 

-MHOT reported 9M22/23 net profit of EGP658.4 million, up 140.1% y/y, driven by revenue performance.