Today’s Top News & Analysis
Subsidized sugar prices to increase
JUFO Q1 2024: Net profits growth driven by strong operations
DSCW Q1 2024: Net profits mainly driven by non-operations
HELI Q1 2024: Interest income drives net profit growth
SWDY: BDO was appointed as IFA
SCEM Q1 2024: Turning into profits to EGP301mn
SKPC Q1 2024: Earnings increased 8% y/y
EFIC Q12024: Earnings grew 93% y/y on higher revenues
MACRO
Subsidized sugar prices to increase
The Minister of Supply said that the subsidized sugar prices should be EGP18/Kg instead of EGP12.6/Kg. He added that the government spends EGP23/Kg for subsidized sugar. Yet, the government did not approve the proposal. (Enterprise)
CORPORATE
JUFO Q1 2024: Net profits growth driven by strong operations
Juhayna Food Industries [JUFO] posted a 41% growth in net profits to EGP478mn in Q1 2024 due to:
· Higher revenues of EGP6bn (+68% y/y), mainly driven by price increases.
· Stronger gross profit margin of 38% (+9pp y/y) backed by higher profitability of the concentrates segment.
· 94% higher export rebate at EGP72mn.
Results imply a TTM P/E of 13.3x. (Company disclosure: 1, 2)
DSCW Q1 2024: Net profits mainly driven by non-operations
Dice Sport & Casual Wear [DSCW] posted a 613% y/y growth in net profits to EGP118mn in Q1 2024 as Q1 2023 was negatively impacted by FX losses of EGP98mn vs. FX gains of EGP0.3mn in Q1 2024. Normalized earnings grew by only 28% y/y.
· Higher revenues of EGP993mn (+44% y/y).
· Gross profit margin declined by 2pp y/y to 29%.
Results imply a TTM P/E of 4.6x. (Company disclosure)
HELI Q1 2024: Interest income drives net profit growth
Heliopolis Housing & Development [HELI] earnings surged to EGP748mn in Q1 2024 vs. only EGP19mn in the comparable period, mainly driven by the huge growth in interest income to EGP892mn vs. EGP32mn in the previous year. In addition, revenues grew by 163% y/y to EGP239mn while the gross profit margin came in flat at 76% (-0.8pp y/y). (Company disclosure)
SWDY: BDO was appointed as IFA
Elsewedy Electric [SWDY] BoD appointed BDO Keys Financial Consulting as an independent financial advisor to prepare a fair value study, in light of the Financial Regulatory Authority’s (FRA) decision dated 30 May 2024. (Company disclosure)
SCEM Q1 2024: Turning into profits to EGP301mn
Sinai Cement [SCEM] reported earnings of EGP301mn in Q1 2024 vs. losses of EGP58.5mn in the comparable period.
· Revenues declined 6% y/y to EGP1.2bn.
· Gross profits grew 39% y/y to EGP331.6mn. (Company disclosure)
SKPC Q1 2024: Earnings increased 8% y/y
Sidi Kerir Petrochemicals (Sidpec) [SKPC] reported an 8% y/y increase in earnings to EGP559mn, thanks to higher interest and investment income during the period.
· Revenues declined 4% y/y on lower sales volumes.
· Gross profit declined 25% y/y with 600bps lower gross profit margin of 22%.
Results imply a TTM P/E of 9.2x. (Company disclosure)
EFIC Q12024: Earnings grew 93% y/y on higher revenues
Egyptian Financial & Industrial Company [EFIC] reported 93% y/y increase in consolidated earnings to EGP428mn, backed by:
· An 82% y/y increase in revenues to EGP1.8bn
· A 98% increase in gross profit and a higher gross profit margin of 35%.
Results imply a TTM P/E of 6.2x. (Company disclosure)
MARKETS PERFORMANCE
Key Dates
3-Jun-24
MSCI / MSCI's May 2024 Semi-Annual Index Review Effective Date.
JUFO: Cash dividend / Payment date for a dividend of EGP0.20/Share.
4-Jun-24
Egypt PMI / May 2024 reading.
5-Jun-24
DSCW: Cash dividend / Payment date for a dividend of EGP0.167/Share.
6-Jun-24
ALCN: OGM / Approving the use of Corporate reserve shown in the audited financial statements.
ALCN: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
8-Jun-24
ESRS: OGM / Approving financial statements ending 31 Dec. 2023 and netting contracts.
ESRS: EGM / Discussing capital reduction.
9-Jun-24
BINV: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
BINV: EGM / Amending Article No. 19 of the company's bylaws.
CCAP: OGM / Approving financial statements ending 31 Dec. 2023.
10-Jun-24
HELI: Cash dividend / Deadline for eligibility for a dividend of EGP1.34/Share.
11-Jun-24
GBCO: Conference Call / Discussing Q1 2024 financial results.
12-Jun-24
EGCH: EGM / Amending Article No. 4 of the company's bylaws.
IDHC: EGM / Amending Article No. 3 of the company's bylaws.
13-Jun-24
HELI: Cash dividend / Payment date for a dividend of EGP1.34/Share.
23-Jun-24
EGTS: OGM / Approving financial statements ending 31 Dec. 2023.
24-Jun-24
BTFH: EGM / Amending Article No. 4 of the company's bylaws.