Today’s Top News & Analysis
Egypt receives the first LNG shipment
11% m/m better auto sales in May 2024
EAST to sell unused land, building, and equipment
ACTF approves IFA valuation and IPO price; starts a 10% share buyback program
ETEL and 4iG modernize Egypt's digital infrastructure
MICH: reporting 18% y/y higher earnings in 11 Months ending May 2024
TAQA & Voltalia to produce green ammonia
EKHO: AlexFert paused operations on gas supply cut
ORHD sells unused land in Gouna for 15 times its book value
MACRO
Egypt receives the first LNG shipment
Sources said that Egypt received the first LNG shipment yesterday in Ain Sokhna. The shipment contains 3.5bn cubic feet of LNG that are expected to be pumped into the gas network throughout the week. (CNN Business Arabic)
11% m/m better auto sales in May 2024
According to the Automotive Marketing Information Council (AMIC), Egypt’s auto sales increased by 11% m/m in May 2024 to 6,300 vehicles. The volumes came as follows:
Passenger car sales slowly rose by 5.7% m/m to 4,800 units.
Truck sales increased by 29% m/m to 1,000 units.
Bus sales saw the most growth by 37% m/m to 450 units. (Enterprise)
CORPORATE
EAST to sell unused land, building, and equipment
Eastern Co.'s [EAST] BoD approved the sale of unused land, building, and equipment in the 6th of October industrial complex. The BoD will present the proposal in the coming OGM. (Company disclosure: 1, 2)
ACTF approves IFA valuation and IPO price; starts a 10% share buyback program
Act Financial's [ACTF] BoD approved the IFA's fair value of EGP3.63/share with a 20% lower IPO price at EGP2.9/share. Additionally, the BoD approved a three-month 10% share buyback program to start with ACTF's first day of trading only when the share's price is lower than the IPO's price. On a separate note, ACTF posted its 5m 2024 consolidated results with net profits of EGP24mn and revenues of EGP138mn with gross profit margin of 45%. (Company disclosure: 1, 2)
ETEL and 4iG modernize Egypt's digital infrastructure
Telecom Egypt [ETEL] announced signing an MoU with the Hungarian 4iG Group to establish a joint venture to build, operate, and commercialize Fiber-To-The-Home (FTTH) and Fiber-To-The-Site (FTTS) fiber access infrastructure in a wholesale basis in Egypt. The joint venture's investment is estimated at USD600mn to be delivered into Egypt's fiber access infrastructure over 10 years. ETEL and 4iG Group will be working on the business model, ownership structure, governance process, and technological details through the coming months. (Company disclosure)
MICH: reporting 18% y/y higher earnings in 11 Months ending May 2024
Misr Chemicals Industries [MICH] reported an 18% y/y increase in earnings to EGP593.5mn for the period ending May 2024 vs. EGP502.6mn in the comparable period. (Company disclosure)
TAQA & Voltalia to produce green ammonia
Taqa Arabia [TAQA] and Voltalia Egypt have signed an agreement with the Egyptian Government to produce Green Ammonia as part of the National Hydrogen Strategy. (Company disclosure)
EKHO: AlexFert paused operations on gas supply cut
Egypt Kuwait Holding [EKHO] announced yesterday that the natural gas supply to its subsidiary Alexandria Fertilizers Co. had stopped due to the recent heat wave. (Company Release)
ORHD sells unused land in Gouna for 15 times its book value
Orascom Development Egypt [ORHD] announced selling 145,266 sqm of unused land in Gouna for EGP1.54bn (USD225/sqm), which is 15 times higher than the land's book value of EGP101mn. (Company disclosure)
MARKETS PERFORMANCE
Key Dates
3-Jul-24
EXPA: OGM / Approving increasing the issued capital by distributing EGP0.33/share worth of stock dividends.
EXPA: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the bank's bylaws.
4-Jul-24
7-Jul-24
ZMID: OGM / Discussing netting contracts.
10-Jul-24
ADIB: Stock dividend / Last date for eligibility for a 0.2-for-1 stock dividend.
EFIH: Stock dividend / Last date for eligibility for a 0.249-for-1 stock dividend.
11-Jul-24
ADIB: Stock dividend / Date for distributing a 0.2 for-1 stock dividend.
EFIH: Stock dividend / Date for distributing a 0.249 for-1 stock dividend.
18-Jul-24
MPC Meeting / Determining the CBE's policy rate.
EMFD: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
24-Jul-24
EAST: OGM / Approving the sale of a plot of land and netting contracts.
EAST: EGM / Amending Article No. 7 of the company's bylaws.
31-Jul-24
TMGH: Cash dividend / Payment date for a dividend of EGP0.11/Share (2nd installment)