Today’s Top News & Analysis
AMEA Power gets funding for renewable projects in Egypt
State ownership policy is in the last miles
Ezz Steel posts Q3 2022 results
CIRA announced 2021/22 results
Fawry acquires 50% stake in Drac
Taaleem to take part in SB Investments capital increase
MACRO
AMEA Power gets funding for renewable projects in Egypt
AMEA Power has locked in USD1.1bn in debt and equity for a 500MW solar plant and 500MW wind farm in Egypt. (Enterprise)
State ownership policy is in the last miles
The government has reportedly approved yesterday the final draft of the state ownership policy document, following amendments made after months of consultations with public and private-sector stakeholders. (Enterprise)
CORPORATE
Ezz Steel posts Q3 2022 results
Ezz Steel [ESRS] posted Q3 2022 net earnings of EGP1.1bn (+20.5% y/y) on the back of:
(1) 18.8% annual growth in top line of EGP22.1bn.
(2) 30bps improvement in EBIT margin to 15.1% on lower SG&A relative to top line.
We note that ESRS was able to achieve strong earnings growth despite enduring FX losses during the third quarter of EGP308mn due to weaker local currency. For 9M 2022, ESRS achieved net earnings of EGP3.7bn (+48.4% y/y) in light of 23.6% higher top line of EGP60.6bn, and GPM improvement to 23.7%. Rebar sales contributed 61% to total revenues, as HRC revenues’ contribution weakened on lower selling prices. ESRS is currently traded at 9M 2022 annualized P/E of 2x. However, we note that company expects heftier FX losses in the final quarter of the year, which could be around EGP2bn, post the EGP devaluation that took place in late October 2022. (Company disclosure)
CIRA announced 2021/22 results
CIRA Education [CIRA] reported 2021/22 consolidated net profits of EGP371mn (+20% y/y) on higher revenues of EGP1.7bn (+23% y/y). Revenues grew due to the increase of students enrollments. Meanwhile, GPM decreased to 51% (-7.1pp y/y), on increased expansion costs, however, SG&A-to-revenues ratio improved to 12% (-4.4pp y/y). We note that our 12MPT for CIRA is EGP20.6/share (ETR +54%). CIRA is currently traded at TTM P/E of 19.8x. (Company disclosure)
Fawry acquires 50% stake in Drac
Fawry [FWRY] intends to expand in Kuwait by acquiring a 50% stake in Drac, a fintech firm specializing in payroll and cloud computing services. (Al-Mal)
Taaleem to take part in SB Investments capital increase
Taaleem Management Serveries’ [TALM] BoD has approved to take part in SB Investments upcoming capital increase, where TALM will have a 32% stake for EGP302mn after the capital increase. (Company disclosure)
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