Today’s Trading Playbook
Amany Shaaban | Equity Analyst
ashaaban@egy.primegroup.org
KEY THEMES
Yesterday, we published our first banking thematic note, discussing how Egypt banks can make the best use of a hawkish Central Bank of Egypt (CBE). The abrupt challenges brought about by the pandemic in 2020 were definitely revealing as they helped highlight points of strengths and weaknesses in Egypt banks. The sector in aggregate managed to navigate through those implications; some banks even have remarkably turned the situation into an advantage. In this note, we are not only taking a deeper look in the rear view mirror but also forecasting glimpses of this year, which is seemingly just as volatile as last year. For more details, check out our published note from yesterday.
Now, on to the top news and analysis for the day.
Top News & Analysis
MACRO NEWS
The government plans to attract USD40bn in fresh investments over the next four years by selling stakes in state-owned assets to local and international investors.
The government wants to increase the private sector’s contribution to economic investment to 65% over the next three years, up from 30% last year. (Enterprise)
Egypt’s unemployment rate dipped to 7.2% in Q1 2022 from 7.4% in the previous quarter. (Enterprise)
The government plans to attract USD40bn in fresh investments over the next four years by selling stakes in state-owned assets to local and international investors. (Enterprise)
The government wants to increase the private sector’s contribution to economic investment to 65% over the next three years, up from 30% last year. (Enterprise)
Egypt’s unemployment rate dipped to 7.2% in Q1 2022 from 7.4% in the previous quarter. (Enterprise)
Prime Minister Moustafa Madbouly announced that Egypt's strategic reserve of commodities is sufficient for at least four months. Meanwhile, oil strategic reserve is sufficient for six months. (Mubasher)
The Egyptian Food Export Council has announced that Egypt’s exports of food have increased by USD49mn (+5% y/y) in Q1 2022 reaching USD1.04bn. (Economy Plus)
Egypt has agreed to buy 500,000 tons of wheat from India. (Reuters)
CORPORATE NEWS
EK Holding [EKHO] reported Q1 2022 results, with a robust 66% increase in bottom line to USD71.1mn (+97% q/q) on the back of both revenues growth and substantial margin improvement.
Export Development Bank of Egypt [EXPA] has announced its Q1 2022 face-lifting results. The bank’s bottom line surged 139% y/y reaching EGP302mn.
Abu Dhabi Islamic Bank – Egypt [ADIB] reported its financials for Q1 2022. The improvement in ADIB’s performance in 2021 carries on to this quarter, as net income increased 33% y/y to EGP424mn.
EK Holding [EKHO] reported Q1 2022 results, with a robust 66% increase in bottom line to USD71.1mn (+97% q/q) on the back of both revenues growth and substantial margin improvement. (Company disclosure)
Export Development Bank of Egypt [EXPA] has announced its Q1 2022 face-lifting results. The bank’s bottom line surged 139% y/y reaching EGP302mn. (Company disclosure)
Abu Dhabi Islamic Bank – Egypt [ADIB] reported its financials for Q1 2022. The improvement in ADIB’s performance in 2021 carries on to this quarter, as net income increased 33% y/y to EGP424mn. (Company disclosure)
Egyptian Gulf Bank [EGBE] released the preliminary results for Q1 2022. The standalone indicators showed a 24% increase in bottom line reaching EGP197mn. (Company disclosure)
Credit Agricole – Egypt's [CIEB] Q1 2022 standalone preliminary results showed bottom line increasing 30% y/y to EGP486bn.(Company disclosure)
Misr Fertilizers Production Co.’s [MFPC] Q1 2022 standalone EPS came at EGP8.9 (+605%) vs. EGP1.26 a year earlier. (Company disclosure)
Edita Food Industries [EFID] announced its Q1 2022 consolidated results; net profit came in at EGP148.1mn (+85.9% y/y).(Company disclosure)
Misr Cement Qena [MCQE] announced its Q1 2022 results; net income amounted to EGP81mn (+161% y/y) with total revenues of EGP669mn (-6% y/y). Margins have improved with GPM coming at 23% (+8% pp) and NPM coming at 12.1% (+8.7% pp). (Company disclosure)
Raya Contact Center [RACC] announced its Q1 2022 results showing a bottom line of EGP7mn (+306% y/y) propelled mainly by higher revenues (including rebates) of EGP257mn (+40% y/y). (Company disclosure)
Alexandria Pharmaceuticals & Chemical Industries [AXPH] announced its 9M 2021/2022 results, reporting a decrease in net profit to EGP80.4mn (-25.7% y/y) compared to EGP108.1mn for the same period in the last year. (Mubasher)
Mena Touristic & Real Estate’s [MENA] consolidated net loss in Q1 2022 decreased to EGP3.20mn vs. a net loss of EGP3.29mn (Company disclosure)