Today’s Top News & Analysis
Egypt to launch mineral exploration bid before yearend
Centamin aims to produce 480,000 ounces of gold in 2023
Egypt targets USD9bn in digital services exports in 2026
GETZ receives three offers for USD1.6bn phosphate fertilizers factories
GCC funds are reportedly interested in Banque Misr’s new digital bank
Golden license to boost the tourism sector
CIRA 9M 2022/23: Strong revenues, yet lower net profits on higher financing expenses
TMG Holding to securitize EGP500mn in club subscriptions
Heliopolis Housing & Development studies an offer received for Helio Park
BTFH’s second phase subscribed 5.49x
Banque du Caire's stake offering is not to be expected in 2023
OFH acquires a minority stake in Sympl
MACRO
Egypt to launch mineral exploration bid before yearend
Egypt intends to launch an international bid for mineral exploration which includes more than 200 areas, each no less than 16 sq km, within the eastern and western deserts before the conclusion of 2023. The bidding will be based on royalties, taxes, and a free production percentage for the Egyptian Mineral Resources Authority (EMRA) and will include exploring and extracting mineral ores such as iron, phosphate, copper, silica sand (white sand), potassium salts, lead, zinc, kaolin, and silt from Lake Nasser. This is part of the government’s plan to develop the mining sector, which includes:
· Attracting USD1bn in FDIs to the mining sector.
· Increasing mineral exports to USD10bn by 2040 (currently USD1.6bn).
· Increasing mineral production (c.11mn tons in FY23).
· Increasing the mining sector’s GDP contribution to 5% (currently 1%). (Asharq Business, Economy Plus)
Centamin aims to produce 480,000 ounces of gold in 2023
Australia-based Centamin aims to produce 450,000-480,000 ounces of gold from its Sukari mine in 2023, after reaching 440,000 ounces in 2022. The company’s investments in Egypt accumulated USD830mn until the end of last year. (Asharq Business)
Egypt targets USD9bn in digital services exports in 2026
The Minister of Communications & Information Technology outlined Egypt’s plan to develop the technology sector, which includes increasing the number of workers specialized in exporting digital services to 550,000 in 2026 and reaching USD9bn from exports of digital services. (Al-Mal)
GETZ receives three offers for USD1.6bn phosphate fertilizers factories
The General Authority for the Golden Triangle Economic Zone (GTEZ) announced that they received three offers worth USD1.6bn from Egyptian and international investors to build phosphate fertilizers and phosphoric acid factories at the zone in Safaga. He also added that the first offer belongs to the Egyptian Financial & Industrial Company [EFIC], with an investment cost of about USD600mn. (Asharq Business)
GCC funds are reportedly interested in Banque Misr’s new digital bank
After state-owned Banque Misr announced applying for the new digital banking license with an estimated capital of EGP2.5bn, GCC funds have reportedly expressed interest in acquiring a 10%-20% stake in the digital bank. (Al-Mal)
Golden license to boost the tourism sector
The Egyptian Government targets increasing the number of hotel rooms available for tourists by 200,000 rooms and improving transportation networks. As an incentive to encourage investment in the tourism sector, the government will grant a Golden License to tourism projects within 20 days of application. (Enterprise)
CORPORATE
CIRA 9M 2022/23: Strong revenues, yet lower net profits on higher financing expenses
CIRA Education [CIRA] reported 9M 2022/23 net profits of EGP351mn (-17% y/y) on higher net financing expenses of EGP271mn (+97% y/y). However, revenues grew by 37% y/y to EGP2bn due to higher tuition fees of EGP1.7bn (+23% y/y). The gross profit margin dropped by 7.5pp y/y to 52%. Meanwhile, Q3 2022/23 net profits declined by 7% y/y to EGP130mn, again due to higher net financing expenses which came at EGP90mn (+64% y/y). Revenues for the quarter grew to EGP701mn (+35% y/y), whereas gross profit margin declined to 54% (-5pp y/y). (Company disclosure)
TMG Holding to securitize EGP500mn in club subscriptions
TMG Holding [TMGH] is looking to securitize EGP500mn from its sports club subscriptions. EFG Holding [HRHO] will handle the securitization program. (Al-Mal)
Heliopolis Housing & Development studies an offer received for Helio Park
Heliopolis for Housing & Development's [HELI] BoD agreed to study and negotiate the offer received to acquire the Helio Park land plot. Meanwhile, HELI denied receiving any acquisition offers for the company. (Company disclosure)
BTFH’s second phase subscribed 5.49x
Shareholders of Beltone Financial Holding [BTFH] subscribed 5.49x to the second phase of the capital increase of 100.4mn shares. This concludes BTFH’s capital increase of EGP10bn over 5bn shares. (Company disclosure)
Banque du Caire's stake offering is not to be expected in 2023
According to unnamed sources, Banque du Caire's [BQDC] long-awaited stake offering is not to be expected during 2023 whether through an IPO or a sale to a strategic investors. (Al-Mal)
OFH acquires a minority stake in Sympl
CEO of Sympl, a fintech start-up, announced that Orascom Financial Holding [OFH] has acquired a minority stake in his company through a capital increase. Meanwhile, OFH's BoD approved a subordinated loan to Sympl, but the amount is yet to be specified. (Al-Mal, Company disclosure)
Markets Performance
Key Dates
19-Jul-23
PACH: OGM / Board election.
29-Jul-23
SAUD: EGM / Amending some articles of the bank's bylaws.
30-Jul-23
HRHO: Stock dividend / Last date for eligibility for a 0.25-for-1 stock dividend.
31-Jul-23
HRHO: Stock dividend / Date for distributing a 0.25 for-1 stock dividend.
TMGH: Cash dividend / Payment date for a dividend of EGP0.096/share (2nd installment).
1-Aug-23
IFAP: EGM / Amending Article No. 4 of the company's bylaws.
2-Aug-23
ESRS: EGM / To approve the position of ESRS as a guarantor for its subsidiaries.
3-Aug-23
5-Aug-23
IRAX: EGM / To approve the voluntary de-listing from the EGX and purchasing the shares of those wishing to exit their position following the de-listing procedures.
10-Aug-23
MSCI / MSCI's August 2023 Quarterly Index Review Announcement.
17-Aug-23
EGTS: OGM / Approving financial statements ending 31 Dec. 2022.
31-Aug-23
PHAR: Cash dividend / Payment date for a dividend of EGP1.00/share (2nd installment).