Today’s Top News & Analysis
Egypt PMI reading falls to 46.7 in March 2023
Investors are interested in TSFE’s hotel arm
Egypt mulls adding EBank to the IPO program
ACGC Q2 2022/23 results: Turning into net profits
EFG Hermes to increase authorized and paid-in capital
EGAL signs a EUR12mn loan facility agreement with CANA
OIH 2022: High base effect casts shadows on y/y growth
Al Baraka aims to acquire 10% of Tally
Macro
Egypt PMI reading falls to 46.7 in March 2023
Egypt PMI fell m/m from 46.9 in February to 46.7 in March 2023, still below the 50 mark for the 28th consecutive month, driven by inflationary pressures, diminishing demand, and persisting FX shortages. (PMI)
Investors are interested in TSFE’s hotel arm
The Sovereign Fund of Egypt is receiving offers from investors to acquire a stake in its new hotel company. The offers will take place through a capital increase, being a fund for the company to grow. (Al-Arabiya)
Egypt mulls adding EBank to the IPO program
The Egyptian government is reportedly considering adding Export Development Bank of Egypt (EBank) to the IPO program within the coming period. (Al-Mal)
Corporate
ACGC Q2 2022/23 results: Turning into net profits
Arab Cotton Ginning Co. [ACGC] reported its consolidated Q2 2022/23 net profits of EGP68mn (+108% y/y) vs. net losses of EGP3.3mn in Q1 2022/23. Although revenues decreased by 5% y/y to EGP330mn, it grew by 43% q/q. Gross profit margin dropped to 18% (-4pp y/y), however, it improved in terms of q/q by 4pp. (Company disclosure)
EFG Hermes to increase authorized and paid-in capital
EFG Hermes Holding’s [HRHO] BoD on 3 April 2023 approved increasing the authorized capital from EGP6bn to EGP30bn. Furthermore, the BoD approved increasing the paid-in capital from EGP5.8bn to EGP7.3bn by EGP1.5bn through a 25% bonus share distribution to be distributed from the retained earnings account in 31 December 2022. (Company disclosure)
EGAL signs a EUR12mn loan facility agreement with CANA
In a statement published yesterday, Egypt Aluminum [EGAL] announced the signing of a EUR12mn loan agreement with Suez Canal Bank [CANA] to fund a new machine with a production capacity of 5000 ton/month. 35% of the agreement was already paid by the company in a down payment last month, and the remaining 65% will be paid through a letter of credit with a 1.5% spread over EURIBOR. (Company Disclosure)
OIH 2022: High base effect casts shadows on y/y growth
Orascom Investment Holding [OIH] net income after minority dropped to EGP418mn (-47% y/y) due to high base effect, as gains from discontinued operations in 2022 recorded only EGP49mn vs. EGP908mn in 2021.
· Meanwhile, OIH turned to profitability on operating income level, recording EGP129mn in 2022 vs. operating losses of EGP102mn a year earlier.
· Improvement in operating income happened in light of: revaluation gains of EGP139mn and a reversal of provisions of EGP200mn.
· On top of that, OIH achieved FX gains of EGP328mn vs. EGP50mn a year earlier
· This led to OIH’s net income from continued operations after minority to turn to profitability, registering EGP368mn vs. a loss of EGP113mn in 2021. (Company disclosure)
Al Baraka aims to acquire 10% of Tally
Reportedly, Al Baraka Bank-Egypt [SAUD] aims to acquire a 10% stake in Tally, the e-payment arm of Banque du Caire [BQDC], which has a capital of EGP500mn within a couple of months. SAUD also targets increasing its 7.5% stake in Al Tawfeek for Financial Lease [ATLC] to 10% or more. (Al-Borsa)
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