Pre-Trading Thoughts

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Egyptian exports to African countries are projected to climb 10% to USD5.5 bn in 2023.

US inflation declined for the first time since August to 3.2%, reassuring investors that the Fed’s aggressive tightening cycle is at an end.

GBCO (FV: EGP10.55,OW) released 3Q23 financials showing: Auto’s attributable net profit recorded EGP475.3 mn (+49.3% YoY, +91.1% QoQ). GB Capital’s net profit reached EGP189 mn (-18.9% YoY, -25.4% QoQ), due to a rise in provisions booked. GBCO is currently trading at a FY24 P/E of 3.4x 

FWRY (FV: EGP6.90, OW) reported positive 3Q23 results. Net profit recorded EGP203 million (+183.5% YoY, +27.4% QoQ). 9M23 net profit came in at EGP487 million (+292% YoY). FWRY is currently trading at 2024f P/E of 16.6x.

MTIE reported positive 3Q23 results. Net profit recorded EGP179 million (+148% YoY, +26% QoQ). 9M23 net profit came in at EGP474 million (+119.5% YoY). 

CANA (FV:EGP15.00, OW) ) standalone net profit recorded EGP729 million (+56% y/y, +93% q/q), bringing the 9M23 bottom-line to EGP1.4 billion (+85% y/y). CANA is currently trading at P/E24 of 2.6x and P/B24 of 0.3x.

CNFN (FV:EGP11.00, OW) released positive 3Q23 financial results where: The bottom-line recorded EGP124 million (+17% y/y, -28% q/q), bringing 9M23 bottom-line to EGP431 million (+18% y/y). CNFN is trading at multiples of 0.9x P/B24 and 3.9x P/E24.

ATLC (FV:EGP6.55, OW) reported 3Q23 net income of EGP84 million (+393% y/y, +235% q/q). 9M23 net income recorded EGP145 million (+9% y/y). ATLC is currently trading at P/B24 of 1.1x and P/E24 of 4.5x.

Banque Misr’s net profits doubled by 205.17% during the fiscal year 2022/2023 where net profit recorded EGP25.97 billion at the end of June 2023.

Bedaya mortgage financing, HRHO’s subsidiary is planning to issue a securitization issuance worth EGP800 mn in the next month.

RMDA( FV: EGP2.79; OW) 3Q23 attributable net profit recorded EGP76.3 million (+7.9 YoY, +55.2% QoQ). RMDA is currently trading at 2024f P/E of 6.5x.

PHAR (FV: EGP38.79, OW) 3Q23 net profit recorded EGP135 million (+18.9% YoY, -58.0% QoQ). During 9M23, net profit recorded EGP644 million (+54.2% YoY). PHAR is currently trading at 2024f P/E of 6.3x.

The American company Cencora sold its entire 50% stake in UCP to a group of investors, in a deal worth USD50 million. 

EAST (FV: EGP38.7, OW) 1Q23/24 net profit recorded EGP1,124 mn (-20% YoY, -52.5% QoQ). We raise our FV for EAST from a previous EGP24.72/share to a current EGP38.7/share while maintaining our Overweight recommendation. EAST is currently trading at a FY23/24 P/E of 5.5x.

Cigarette distributors JTI-Nakhla Tobacco and Al Mansour International Distribution Company hiked the price of smokes by up to 23%.

MCQE (FV: EGP15.18, EW) reported 3Q23 consolidated financial results recording an attributable net loss of EGP29.7 million, compared to a net loss of EGP22.0 million in 2Q23 and a net profit of EGP9.4 million in 3Q22, bringing 9M23 bottom-line to EGP14.1 million (-78% YoY). MCQE is trading at FY24 P/E of 42.2x.

PHDC (FV: EGP4.35, OW) 1) plans to invest EGP65.0 billion in the 374 feddan land plot it acquired in October 2023, 2) expects real estate selling prices in Egypt to increase by at least 40% in 2024, and 3) is negotiating obtaining a EGP5.5 billion loan in the next three months to finance Badya.

OCDI (FV: EGP37.56, OW) signed a EGP1.2 billion credit facility.

CSAG released 1Q23/24 financial results showing net profit of EGP14.1 million (-78.8% YoY).

 ETRS 3Q23 net profit recorded EGP4.2 million (-60.5% YoY, -46.1% QoQ). During 9M23, net profit recorded EGP37.7 million (+22% YoY).