KEY THEMES
Delta Sugar [SUGR] continued its upward movement, since we mentioned the name back in our Trading Playbook dated 12 July 2021, as SUGR has gained c.30% under only seven trading sessions. We remind you that we anticipate SUGR to achieve a bottom-line between EGP180mn to EGP200mn in 2021, where we valued SUGR at EGP14.5/share (+28%). Performance recovery in 2021 is anchored by starting the year with a thin inventory, coupled with higher global sugar prices.
Elsewhere, The Egyptian Exchange has revealed the details of the MTO of Arab Banking Corporation’s (ABC) to acquire BLOM Bank—Egypt. The offer valuation of the latter came at EGP22.33/share or EGP6,699mn, at a P/BV of 1.37x. We think that, given the ROE profile of BLOM Bank—Egypt, the deal implies strong growth factor seen by the acquirer. We believe the news should be refreshing to the banking sector in general, and especially to banks which resemble BLOM Bank—Egypt’s size, such as Suez Canal Bank [CANA].