HDBK| A Blend of Two Sectors Supported by Macro Backdrop
HDBK’s (FV: EGP65.00, OW) real estate segment along with the diversified bank’s investments keep delivering high earnings growth that sometimes compensates for any relative weakness in commercial banking operations. The potential demerger of the stock into banking and real estate could unlock its upside potential.
ECAP| Lack of Imports and Foreign Currency Shortage Fall in Favor
ECAP (FV: EGP35.56, OW) was able to increase sales and margins in 2023, benefiting from the lack of the imported ceramic tiles, given that the company offers the sole direct substitute for imported products in the local market.
S&P Global expects Egyptian authorities will further devalue the EGP from 31 EGP/USD to a level that is more in line with the parallel market rate.
President El Sisi issued a decree that will see the government transfer its ownership of a set of ministerial headquarters to the Sovereign Fund of Egypt.
The Finance Ministry plans to list EGP-denominated bonds on the Hong Kong Exchange (HKEX).
Suez Canal revenues declined by 44% YoY in January amounting to USD802 million.
In a recent insight, Fitch Ratings said that "if disruption is sustained throughout 1H24, we estimate a widening the current-account deficit to 3.5% of GDP, from our baseline of 2.7%.
Savers have put away some EGP 471 bn into the newly introduced high-yield CDs from NBE and BM.
S&P expects Egyptian banks' foreign-currency liquidity positions to continue to deteriorate, pointing to the FX crunch.
Prime Holding is considering increasing its capital by 50%-100% (EGP175-EGP350 million) to implement its expansion plans.
The government is gearing up to launch an international mining tender for three minerals in March.
The FRA approved the reduction of SWDY’s (FV: EGP34.96, OW) paid-in capital from EGP2.17 billion to EGP2.14 billion by cancelling treasury shares in total of 30 million shares.
ESRS (FV: EGP97.02, OW) raised its rebar price, for the fourth time since the beginning of the year, by EGP6,980/ton to EGP55,280/ton as of yesterday, 27 January 2024. Rebars price was increased by c. EGP17k since the beginning of January.
Red Sea Ports recorded an increase of 7% YoY for goods trading in 2023.