Al Ahly Pharos

Pre-Trading Thoughts

March 18, 2024 Al Ahly Pharos
Al Ahly Pharos
Pre-Trading Thoughts
Show Notes

EU leaders have sealed a EUR7.4 billion deal with Egypt to help boost the economy, in an attempt to bring stability to the region and avert another migration crisis in Europe.

Egypt has requested from the IMF USD5 billion as a first tranche it will receive next April.

After the float of the EGP, the government has made easing the backlog one of its top priorities, with some USD3 billion worth of goods released in the span of a few days, the Prime Minister said.

JP Morgan Bank will make available, within days, an amount of EUR350 million for the Monorail line project in the New Administrative Capital and 6th of October City, to accelerate the operations and disburse dues and payments to the implementing companies.

The government will soon launch a tender to select an international consulting firm to develop a plan and prepare the necessary studies for an electricity linkup with Greece that will enable exports of Egyptian renewable energy into Europe.

Five investors of Arab and foreign nationalities are studying investment opportunities in the Egyptian healthcare sector during the coming period.

The New October City Development Authority received 60 requests from investment companies and real estate developers to obtain investment plots of land according to the payment mechanism in US dollars transferred from abroad.

Egypt has received humanitarian aid worth USD13.3 million since the beginning of 2024, according to the Financial Tracking Service website issued by the Office for the Coordination of Humanitarian Affairs.

The Egyptian-Australian Business Council seeks to localize 30 Australian companies in Egypt during the current year, with investments amounting to USD600 million.

CLHO (FV: EGP5.30, OW) reported 4Q23 results.Net attributable profit stood at EGP107 million in 4Q23 (+36.0% YoY, -19.0% QoQ), bringing 2023’s net attributable profit to EGP418 million (+28.4% YoY). CLHO is currently trading at 2024f P/E of 17.0x and EV/EBITDA of 8.2x.

The government reportedly wants to keep no more than 20% of HELI (FV: EGP18.84, OW), ZMID, and ELSH by the start of 2025.

KIMA released FY24/25 budget with a net profit of EGP821 million and total revenue of EGP6.7 billion, including EGP5.1 billion of export revenue. 

KIMA is holding a general assembly on 20 March 2024 to approve increasing the company’s paid-in capital by EGP4 billion to EGP9.9 billion through a rights issue at EGP5 per share as par value in addition to EGP0.05 per share as issuance expenses. 

The Egyptian Natural Gas Holding Co. (EGAS) plans investing USD2.6 billion during FY24/25 to develop 20 wells.

EGAS is setting up a new venture in the KSA, dubbed Modern Gas Saudi Arabia, which will be 80% held by units of the state-owned natural gas player.

Weekly Commodities Update

 |   | Last Price | WoW Change, %
| Brent, USD/bbl | 85.3 | 4.0%
| Diesel-HSFO Spread, USD/ton | 387 | 2.0%
| Egypt Urea, USD/ton | 406 | 0.0%
| Polyethylene, USD/ton | 1,040 | -1.9%
| Polypropylene, USD/ton | 970 | 0.0%
| Steel/Iron Ore Spreads, USD/ton | 388 | 2.0%
| LME Aluminum Cash Price, USD/ton | 2,225 | 1.4%
| Egyptian Retail Cement, EGP/ton | 2,080 | 0.0%
| Steam Coal FOB Newcastle Australia, USD/ton | 131 | -2.5%
| SMP, USD/MT | 2,640 | 0.0%
| Last price may vary week over week in some indices due to time difference