Today’s Top News & Analysis
Maersk’s SCCT inks contract for East Port Said port expansion
HDBK announces Q3 2022 figures
Strong Q3's 2022 earnings for CANA
B Investments announces 9M 2022 results
Dice turns into profitability in Q3 2022 results
Raya posts 9M 2022 results
Orascom Financial announces standalone 9M 2022 results
Elsewedy Electric and ReNew Power sign a contract to handle a new green hydrogen plant
MACRO
Maersk’s SCCT inks contract for East Port Said port expansion
AP Moller-Maersk will embark on a major expansion at the Suez Canal Container Terminal (SCCT) in East Port Said port that is expected to raise its capacity by 40%. Meanwhile, it will also be in charge of securing financing for the USD500mn project. (Enterprise)
CORPORATE
HDBK announces Q3 2022 figures
Housing and Development Bank [HDBK] announced Q3 2022 results.
· HDBK’s Net Interest Income (NII) increased 16% q/q to EGP1.3bn (+57% y/y), yet the bank’s net income declined 3% q/q to EGP549mn (+34% y/y). This was mainly due to provisions of EGP296mn this quarter, which represents 82% of the total booked provisions in 2022.
· Even with such high amount of booked provisions, HDBK’s coverage ratio is still below 100%, recording 90%.
· This comes with a q/q growth of 10% in the bank’s gross loans to EGP34bn, noting that HDBK has the highest in the market NPL ratio of 8.5%.
· HDBK’s deposits increased 11% q/q to EGP87bn, bringing GLDR down to 39%
NIM now stands at 6.7%, and annualized ROE is at 24%. The bank is now traded at an annualized P/E of 2.6x and a P/BV of 0.6x (Company disclosure)
Strong Q3's 2022 earnings for CANA
Suez Canal Bank [CANA] announced its results for Q3 2022.
· The bank posted strong net earnings of EGP467mn with a 170% q/q growth. This quarter alone represents 64% of the total 9M 2022 earnings of EGP735mn.
· The strong bottom line growth was on the back of (1) EGP539mn gains from sale of financial investments. 2) A 12% q/q increase in CANA’s NII to EGP506mn.
· The bank managed to increase its loan book by 6.5% q/q to EGP30bn with an NPLs ratio of 4.4% and a coverage ratio of 129%
· Meanwhile, CANA’s deposits grew to EGP58bn by 2.5% q/q, bringing GLDR of 52%.
With an annualized ROE of 19%, the bank is now traded at an annualized P/E of 2.4x and a P/BV of 0.5x.(Company disclosure)
B Investments announces 9M 2022 results
B Investments' [BINV] 9M 2022 net earnings skyrocketed to EGP647mn vs. EGP73mn a year earlier. This was owing to the gain proceeds of EGP1.2bn from selling its in Giza Systems stake. Meanwhile, operating revenues rose to EGP1.3bn in 9M 2022, up from EGP112mn a year before. (Company disclosure)
Dice turns into profitability in Q3 2022 results
Dice Sports & Casual Wear [DSCW] reported Q3 2022 standalone net profits of EGP48mn compared to net losses of EGP3mn last year. Turning to profitability came on the back of a 30% annual growth in revenues to EGP527mn. Meanwhile, GPM came in at 22% (+11pp y/y). (Company disclosure)
Raya posts 9M 2022 results
Raya Holding's [RAYA] 9M 2022 results showed a 14% y/y annual growth in operating revenues to EGP14bn. Meanwhile, net earnings fell by 45% y/y to EGP241mn due to the following:
1) The increase in the direct financing expenses by 66% y/y to EGP470mn in 9M 2022.
2) A Strong base effect, as a result of a one-off gain from investments during 9M 2021.
Normalizing for the one-off gains, net earnings would have grown by 113% y/y.
Raya is now trading at an annualized ROE of 22% and P/BV of 4x, with an annualized P/E of 17x. (Company disclosure)
Orascom Financial announces standalone 9M 2022 results
Orascom Financial Holding's [OFH] 9M2022 standalone results showed net losses of EGP223mn, compared to net earnings of EGP49mn a year earlier. This took place in view of a loss from investment in subsidiaries of EGP322mn. (Company disclosure)
Elsewedy Electric and ReNew Power sign a contract to handle a new green hydrogen plant
Elsewedy Electric [SWDY], in a consortium with ReNew Power, has signed a contract with the Egyptian government to develop, finance, build, service, and operate the green new green hydrogen plant. (Al-Mal)
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