Today’s Top News & Analysis
NUCA sold USD2.5bn of land in 7 months
ADEX extends an USD100mn loan to NBE to boost UAE exports
EAST 2022/23: Exceptionally strong earnings on other income and lower effective tax rate
TAQA establishes a company in Saudi Arabia
BTFH Q2 2023: Higher revenues but wider net losses
Orascom Construction and Colas Rail to build Abu Qir metro
MACRO
NUCA sold USD2.5bn of land in 7 months
New Urban Communities Authority (NUCA) sold land plots worth USD2.5bn since the beginning of the year until July 2023. The authority received applications from 85 real estate developers in the recent offering of 23 plots of land with an estimated value of EGP2bn, which reflects high demand. (Economy Plus)
ADEX extends an USD100mn loan to NBE to boost UAE exports
Abu Dhabi Exports Office (ADEX), the export-financing arm of Abu Dhabi Fund for Development (ADFD), signed an EGP100mn financing agreement with National Bank of Egypt (NBE) to support transactions involving UAE exports to Egypt. (Emirates News Agency WAM)
CORPORATE
EAST 2022/23: Exceptionally strong earnings on other income and lower effective tax rate
Eastern Co. [EAST] posted its full financial results for 2022/23, reporting net profits of EGP7.7bn (+90% y/y) despite revenues growing at only 5% y/y to EGP18bn and gross profit margin coming flat at 46%. The net profits growth is attributable to:
· Higher other income of EGP721mn (+374% y/y).
· Higher monetary investments income of EGP1.6bn (+13% y/y).
· Lower effective tax rate of 21.6% (-2pp y/y).
EAST is currently traded at a 2022/23 P/E of 6.8x. (Company disclosure)
TAQA establishes a company in Saudi Arabia
TAQA Arabia [TAQA] completed the procedures for establishing a limited liability company in Saudi Arabia with Natural Gas Distribution Co. [KSA: 9516] (a 50% stake each). The company, under the name of First Gas Co. Ltd., will be extending, maintaining, and repairing oil and gas pipelines as well as transporting natural gas, with a paid-in capital of SAR0.5mn. (Company disclosure)
BTFH Q2 2023: Higher revenues but wider net losses
Beltone Financial Holding [BTFH] reported net losses of EGP94mn (-14% y/y) in Q2 2023 vs. net losses of EGP52mn in Q1 2023. This came despite a satisfying 14% q/q increase in total revenues to EGP156mn (almost 50x higher y/y). The q/q wider losses can mainly be attributed to:
· Higher interest expense to EGP63mn (+25% q/q, +81% y/y) on higher interest rate.
· Higher other operating expenses of EGP66mn (+66% q/q, +200% y/y).
· Absence of any FX gains vs. EGP18mn Q1 2023.
As for H1 2023 overall, net losses came in also wider 38% y/y at EGP146mn, despite a 165% leap in total revenues to EGP292mn. This was on the back of:
· A surge in wages and salaries to EGP207mn (+108% y/y).
· Higher other operating expenses (+130% y/y).
· Higher interest expense to EGP114mn (+83%). (Company disclosure)
Orascom Construction and Colas Rail to build Abu Qir metro
A consortium of Orascom Construction [ORAS] and Colas Rail won the contract for Abu Qir Metro project, a 21km metro rail with its first phase expected to cost EUR1.5bn. (Al-Borsa)
MARKET PERFORMANCE
Key Dates
15-Sep-23
IMF Review / Second IMF review with Egypt (end-June 2023 quantitative targets).
17-Sep-23
MCQE: Cash dividend / Deadline for eligibility for a dividend of EGP0.750/Share.
19-Sep-23
EXPA: EGM / Amending Article No. 5 of the bank's bylaws.
20-Sep-23
MCQE: Cash dividend / Payment date for a dividend of EGP0.25/share (1st installment).
RMDA: Stock dividend / Last date for eligibility for a 0.52-for-1 stock dividend.
21-Sep-23
RMDA: Stock dividend / Date for distributing a 0.52 for-1 stock dividend.
MPC Meeting / Determining the CBE's policy rate.
26-Sep-23
MICH: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
ODIN: OGM / Approving financial statements ending 30 June 2023.
ODIN: EGM / Amending Article No. 7 of the company's bylaws.
TAQA: OGM / A board reshuffle.
TAQA: EGM / Amending Article No. 24 of the company's bylaws.
27-Sep-23
BTFH: OGM / Discussing netting contracts.
30-Sep-23
ABUK: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
ABUK: EGM / Amending Articles No. 8, 16, 21 & 39 of the company's bylaws.
AMOC: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
IFAP: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.