Today’s Top News & Analysis
Egypt aims to be self-sufficient in gasoline and diesel
Egypt signs 12 industrial agreements worth USD2bn with three other countries
MNHD’s 2022: Triple-digit earnings growth; contract sales more than triple to EGP11.2bn
BINV’s standalone 2022: Reaping the benefit of Giza Systems exit
GB Corp 2022 results: Extraordinary net profits
MFPC’s preliminary standalone 2022: Earnings more than double
ECHEM & MOPCO sign a green ammonia agreement with SCATEC
MCQE’s 2022: Lower margins despite higher cement prices
MBSC’s 2022: Back in the red on provisions
CERA’s 2022: Lower earnings on weaker margins despite higher revenues
OLFI’s OGM approves a cash dividend
EGBE’s BoD approves proposed dividends
ISPH plans to invest EGP200mn during 2023
Aman issues Sukuk program; Capital increase
MACRO
Egypt aims to be self-sufficient in gasoline and diesel
The Minister of Petroleum & Mineral Resources revealed development plans to help Egypt become self-sufficient in gasoline and diesel. Such plans are expected to be achieved by implementing new government projects, including the expansion plans for Middle East Oil Refinery (MIDOR) worth USD2.4bn and implementing Assiut National Oil Processing Co.'s (ANOPC) new diesel complex worth USD1.9bn. (Al-Mal)
Egypt signs 12 industrial agreements worth USD2bn with three other countries
As a part of the industrial partnership between Egypt, Jordan, the UAE, and Bahrain, the four countries signed 12 new agreements worth USD2bn. The agreements include investments in nine industrial projects in five key sectors: agriculture, pharmaceuticals, minerals, petrochemicals, and electrical vehicles. Of that amount, USD500mn will be invested in Egypt’s Soda Chemical Industries Co. to produce sodium carbonate. (Asharq Business)
CORPORATE
MNHD’s 2022: Triple-digit earnings growth; contract sales more than triple to EGP11.2bn
Madinet Nasr for Housing & Development [MNHD] 2022 net income came in at EGP747.4mn compared to EGP282.6mn (+164.5% y/y) on revenues' of EGP5.2bn (+146% y/y). GPM recorded 38.7% (+3.5pp y/y) on a higher income from installment sales. Contract sales grew to EGP11.2bn (+224% y/y) in 2022, with EGP3.7bn recorded in Q4 2022 alone. Meanwhile, the acquisition of Egycan Properties and MNK Developments contributed another EGP1.2bn of contract sales in Q4 2022 which was not included in the company’s financials for 2022. Delivery of units grew by 101% y/y to 2,070 units during 2022, compared to 1,030 units in 2021, with 957 units delivered during Q4 2022. (Company disclosure)
BINV’s standalone 2022: Reaping the benefit of Giza Systems exit
B Investments’ [BINV] standalone 2022 earnings rose to EGP861mn in 2022 vs. EGP123mn in 2021 on revenues of EGP999mn (vs. EGP175mn in 2021). The significant boost in net earnings was bolstered by:
(1) Higher FX gains of EGP74.5mn.
(2) Dividend income from Inergia Technologies, resulting from Giza Systems exit, worth EGP913mn.
Meanwhile, total expenses recorded EGP189mn in 2022 vs. EGP29mn in 2021, due to the performance fees expense which recorded EGP129mn. Separately, BINV's BoD approved distributing a cash dividend of EGP4/share or EGP640mn to be followed by another EGP1/share following ratification of Q1 2023 results. (Company disclosures: 1, 2)
GB Corp 2022 results: Extraordinary net profits
GB Corp [AUTO] reported 2022 net profits of EGP10bn compared to EGP1.4bn last year, despite decrease in revenues by 5% y/y to EGP30bn. The net profits increase was due to Selling 7.5% stake from MNT Halan for EGP8.2bn.
Meanwhile, GB Auto & Auto related reported net profits of EGP933mn (+17% y/y) on higher gross profit with gross profit margin of 18% (+5pp y/y). However, revenues decreased by 13% y/y due to FX shortage and import limitations.
Regarding GB Capital, net profits came in at EGP847mn (+25% y/y) excluding sales of MNT stake. In addition, revenues grew to EGP9.4bn (+18% y/y). Gross profit margin expanded by 7pp y/y to 44%. (Company disclosure)
MFPC’s preliminary standalone 2022: Earnings more than double
Misr Fertilizers Production’s [MFPC] preliminary standalone earnings surged by 148% y/y to EGP3.8bn in 2022, partially on the back of a 106% y/y increase in top line to EGP6.9bn. This strong leap can be attributed to global fertilizer prices’ historic levels in 2022. However, GPM only widened by 2 pp y/y to 61%. On a separate note, BoD has approved adding the activity of producing and distributing "urea solution" to MFPC's main purposes. (Company disclosure)
ECHEM & MOPCO sign a green ammonia agreement with SCATEC
The Ministry of Petroleum has signed an agreement between Egyptian Petrochemicals Holding Co. (ECHEM), Misr Fertilizers Production [MFPC], and the Norwegian SCATEC, the largest clean energy developer in Egypt. The agreement defines cooperation in future projects to produce green ammonia through green hydrogen, which makes both companies more compliant with the new export requirements. (Ministry of Petroleum)
MCQE’s 2022: Lower margins despite higher cement prices
Misr Cement Qena’s [MCQE] net income fell to EGP96mn in 2022 vs. EGP146mn in 2021 (-34% y/y). Revenues grew by 11% y/y to EGP2.8bn on a higher average blended selling price of EGP1,088/ton (+66% y/y) despite a 34% lower sales volume of 2.4mn tons of cement compared to 3.6mn tons of cement and clinker the year before. GPM tightened to 13.9% compared to 19.2% in 2021 (-5.3pp y/y) on the higher cost of raw materials, fuels and energy during the year. Ready-mix concrete sales amounted to EGP289mn in 2022 compared to EGP295mn in 2021 (-2% y/y) due to selling 300,000 cubic meters of concrete during the year compared to 416,000 cubic meters in 2021. The ready-mix concrete segment had a GLM of 0.7% compared to a GPM of 10% in 2021. (Company disclosure)
MBSC’s 2022: Back in the red on provisions
Misr Beni Suef Cement’s [MBSC] 2022 results showed a net loss of EGP145.9mn compared to a net profit of EGP169mn the year before. Revenues came in at EGP1.8bn (+65% y/y) mainly due to higher cement selling prices during the year. GPM recorded 1.8% during the year (-5pp y/y) on a 139% higher cost of fuels and 252% higher cost of raw materials. The company also recorded an EGP221mn in provisions related to the lawsuit it lost against Arab Swiss Engineering Co. (ASEC) last September. (Company disclosure)
CERA’s 2022: Lower earnings on weaker margins despite higher revenues
The Arab Ceramic Company - Ceramica Remas [CERA] recorded a net profit of EGP19.5mn
(-60% y/y) on revenues of EGP929mn (+16% y/y). Higher revenues came from selling 10mn sqm of tiles (-16% y/y) and 17,689 tons of sanitary ware (-5% y/y). However, GPM dropped from 10.8% to 6.9% (-3.9pp y/y). (Company disclosure)
OLFI’s OGM approves a cash dividend
Obour Land Food Industries’ [OLFI] OGM approved distributing a cash dividend of EGP0.95/share, implying a 9% yield. (Company disclosure)
EGBE’s BoD approves proposed dividends
Egyptian Gulf Bank’s [EGBE] BoD has approved the proposed dividends for H1 2022, which amounted to EGP379mn. However, the board is yet to consider dividends for H2 2022 to be paid out of retained earnings depending on the results of the bank’s stress tests. (Bank disclosures: 1, 2)
ISPH plans to invest EGP200mn during 2023
Ibnsina Pharma [ISPH] is planning to invest EGP200mn during 2023 to expand its various activities, especially logistics. (Al-Mal)
Aman issues Sukuk program; Capital increase
Aman Holding, a subsidiary of Raya Holding [RAYA], is studying to issue a sukuk program worth EGP500mn in 2023. Aman also plans to increase it paid-in capital by EGP450mn as part of its expansion plan outside Egypt. (Al-Borsa)
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