Today’s Top News & Analysis
Egypt targets foreign investments of USD10bn in FY24
CCAP Q2 2023: A drop in bottom line on weaker margins
MOIL H1 2023 prelim.: Back to in the black
EZDK starts voluntary delisting this week
EFIH's BoD approves an interim cash dividend
ValU concludes its sixth securitization bond issuance
Egyptian government plans to sell stakes in MOPCO and Delta Sugar
PACHIN to delist from the EGX
MACRO
Egypt targets foreign investments of USD10bn in FY24
The General Authority for Investment is targeting a total of USD10bn in net foreign investments in FY24. (Economy Plus)
CORPORATE
CCAP Q2 2023: A drop in bottom line on weaker margins
Qalaa Holdings [CCAP] announced its Q2 2023 financial results where it recorded net losses of EGP381mn vs. net profits of EGP362mn in Q2 2022 (vs. net profits of EGP73mn in Q1 2023). This comes despite revenues coming in flat y/y at EGP28bn. However, a sharp decrease in gross profit margin to 18.7% from 35.2% a year earlier caused the decline in bottom line. The drop in margins is attributable to a plunge in Egyptian Refining Co.’ (ERC) refining margins, knowing that the company represent more than 75% of CCAP’s top line. The refining margins drop was on the back of higher feedstock prices and lower selling prices. Although CCAP expects a recovery in selling prices in Q3 2023, it mentioned that ERC’s low margins will likely persist in Q3 2023 given a factory overhaul in ERC during July. Also, a significant increase in finance cost to EGP2.2bn (+100% y/y) widened CCAP’s net losses. This comes despite FX gains of EGP263mn (vs. FX losses of EGP90mn in Q2 2022) and lower provisions of only EGP60mn (-49% y/y). (Company disclosure)
MOIL H1 2023 prelim.: Back to in the black
Maridive & Oil Services [MOIL] reported its H1 2023 preliminary consolidated results recording net profits of USD18mn vs. a net loss of USD16mn in H1 2022. This came driven by an 86% y/y increase in revenues to USD86mn and a GPM of 52% vs. a GLM of 12% a year earlier. (Company disclosure)
EZDK starts voluntary delisting this week
Al Ezz Dekheila Steel Co. (EZDK) [IRAX] announced it will start purchasing the shares of those affected by the voluntary delisting through the OPR system on Tuesday, 19 September through 25 September at EGP1,250/share. (Company disclosure)
EFIH's BoD approves an interim cash dividend
E-Finance's [EFIH] BoD held on 14 September 2023 approved a dividend distribution of EGP0.177/share for H1 2023, subject to OGM approval. This implies an interim dividend yield of 1% based on yesterday's closing price. (Company disclosure)
ValU concludes its sixth securitization bond issuance
EFG Holding [HRHO] concluded the sixth issuance of securitization bonds for its consumer finance arm ValU. The issuance was worth EGP922.3mn and is of one tranche over 12 months. (Hapi)
Egyptian government plans to sell stakes in MOPCO and Delta Sugar
According to unnamed sources, the Egyptian government plans to sell stakes in both Misr Fertilizers Production (MOPCO) [MFPC] and Delta Sugar [SUGR]. Sources added that the UAE’s ADQ expressed interest in acquiring a 20-25% stake in SUGR, where a subsidiary of the Holding Company for Food Industries owns a 55% stake. As for MOPCO, ADQ could be interested in an additional 15% stake, noting that both the Saudi PIF and ADQ had acquired 25% and 20% stakes, respectively, in MFPC last year. (Al-Borsa)
PACHIN to delist from the EGX
The BoD's of Paints & Chemical Industries (PACHIN) [PACH] approved to voluntarily delist from the Egyptian Exchange after the acquisition of National Paints Holding. PACH will buy back the remaining shares at EGP39.8/share from the market. (Company disclosure)
Key Dates
19-Sep-23
EXPA: EGM / Amending Article No. 5 of the bank's bylaws.
20-Sep-23
MCQE: Cash dividend / Payment date for a dividend of EGP0.25/share (1st installment).
RMDA: Stock dividend / Last date for eligibility for a 0.52-for-1 stock dividend.
21-Sep-23
RMDA: Stock dividend / Date for distributing a 0.52 for-1 stock dividend.
MPC Meeting / Determining the CBE's policy rate.
26-Sep-23
MICH: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
ODIN: OGM / Approving financial statements ending 30 June 2023.
ODIN: EGM / Amending Article No. 7 of the company's bylaws.
TAQA: OGM / A board reshuffle.
TAQA: EGM / Amending Article No. 24 of the company's bylaws.
27-Sep-23
BTFH: OGM / Discussing netting contracts.
28-Sep-23
EAST: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
30-Sep-23
ABUK: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
ABUK: EGM / Amending Articles No. 8, 16, 21 & 39 of the company's bylaws.
AMOC: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
IFAP: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.