New Research
Abu Qir Fertilizers [ABUK]: The Afterparty — What's Next After an Exceptional Year?
Abu Qir Fertilizers [ABUK] announced exceptional preliminary results for FY2022/23, achieving a new record net profit of EGP14.6bn (+61% y/y). This aligns with our previous expectations for the year's earnings at EGP14.7bn. Now that the waves of global urea price hikes have subsided significantly compared to the previous fiscal year, do we still anticipate an increase in the value of ABUK’s shares?
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Today’s Top News & Analysis
BP to invest USD3.5bn over the next three years
Egypt aims to generate EGP960bn from petroleum extraction in FY24
EGAL's preliminary 2022/23: Strong y/y earnings growth despite last quarter’s losses
HELI receives an offer for Heliopark
ETHYDCO's acquisition to be completed by end of October
EASTs’ stake sale to be finalized in H1 2024
EFIC Q2 2023: weaker earnings despite improved revenues
Beltone denies intentions to acquire a stake in CashCall
Beltone Leasing signs an EGP750mn sale-leaseback agreement with Pickalbatros
MACRO
BP to invest USD3.5bn over the next three years
BP's CEO sat down with the Egyptian President to discuss the company's plan to invest USD3.5bn over the next three years in petroleum exploration and R&D. (Al-Mal)
Egypt aims to generate EGP960bn from petroleum extraction in FY24
The Ministry of Petroleum & Mineral Resources reportedly plans to generate a domestic output of EGP960bn (+16% y/y) in FY24. The aim is to reach c.EGP1.14tn by the end of the state's petroleum development plans, with an estimated average growth rate of 20% during that period. Meanwhile, the ministry aims to increase its production from crude oil and natural gas extraction to EGP1.1tn (+16% y/y) in FY24 and grow at a 2y CAGR of 8.7% to EGP1.3tn by FY26. (Al-Mal)
CORPORATE
EGAL's preliminary 2022/23: Strong y/y earnings growth despite last quarter’s losses
Egypt Aluminum’s [EGAL] 2022/23 preliminary results showed bottom line rising by 48% y/y to EGP3.7bn compared to EGP2.5bn the year before. The increase came on the back of 52% higher revenues of EGP22bn and an 8pp y/y higher GPM of 32% (including SG&A expenses). However, the results imply that EGAL recorded a net loss of EGP225mn in Q4 2022/23 on a higher effective tax rate of 158% (24% for the full year) and a lower EBT margin of 5% in Q4 2022/23 compared to 35% in Q3 2022/23. (Company disclosure)
HELI receives an offer for Heliopark
Heliopolis Housing & Development [HELI] received an offer for the Heliopark land plot from the National Organization for Social Insurance (NOSI) to buy the land plot. No details have been announced regarding the value of the deal. (Company disclosure)
ETHYDCO's acquisition to be completed by end of October
Sidi Kerir Petrochemicals (Sidpec) [SKPC] reportedly aims to finalize the acquisition of 80% of Egyptian Ethylene Production Co. (ETHYDCO) by the end of October. Sidpec will invite its general assembly within three weeks to vote on the acquisition through a share swap, the process of which is expected to be completed within two weeks of the assembly's approval. (Al-Borsa)
EASTs’ stake sale to be finalized in H1 2024
The Egyptian government plans to finalize selling a stake in Eastern Co. [EAST] in H1 2024. Sources added that interested companies are Philip Morris and Japan Tobacco International (JTI), where both companies offered similar prices at USD700mn. Besides, there is a third unnamed company from the GCC that is interested as well. (Al-Borsa)
EFIC Q2 2023: weaker earnings despite improved revenues
Egyptian Financial & Industrial Co.’s [EFIC] Q2 2023 consolidated financials showed net income declining by 19% y/y to EGP213mn (-4% q/q) in spite of a 34% y/y increase in revenues to EGP1.5bn (+51% q/q). The huge increase in USD-based cost outpaced revenue growth due to the EGP devaluation. This pushed GPM lower y/y to 34.5% vs. 43% a year before, yet it rose a bit q/q from 32% in Q1 2023. Revenue growth was muted by the huge net financing expense of EGP92mn against net financing income of EGP75mn last quarter. For H1 2023, net income declined by 13% y/y to EGP435mn, while revenues increased by 26% y/y. Annualized ROE now stands at 41% vs. 47% last year. (Company disclosure)
Beltone denies intentions to acquire a stake in CashCall
In a statement published yesterday, Beltone Financial Holding [BTFH] denied submitting any offer to purchase a 60% stake in the e-payment firm CashCall. It was reported earlier in the media that Beltone seeks to acquire a 60% stake in CashCall in a deal valued at EGP500mn. (Company disclosure)
Beltone Leasing signs an EGP750mn sale-leaseback agreement with Pickalbatros
Beltone Leasing, a subsidiary of Beltone Financial Holding [BTFH], signed with Pickalbatros Hotels & Resorts Group a sale-leaseback agreement of EGP750mn for Laguna Vista Beach Resort in Sharm El-Sheikh to provide it with working capital finance. (Company disclosure)
Key Dates
30-Aug-23
ORAS: Financial results Announcement / Q2 2023 financial results' announcement.
31-Aug-23
ZMID: Cash dividend / Payment date for a dividend of EGP0.05/share (1st installment).
PHAR: Cash dividend / Payment date for a dividend of EGP1.00/share (2nd installment).
1-Sep-23
MSCI / MSCI's August 2023 Quarterly Index Review Effective Date.
5-Sep-23
Egypt PMI / August 2023 reading.
6-Sep-23
ELSH: OGM / Approving the decisions of the company’s board of directors in its meeting held on 15/6/2023.
ELSH: EGM / Amending some articles of the Company's bylaws.