Today’s Top News & Analysis
The Saudi Tamer Group eyes a stake in UCP
A GCC fund invests USD200mn in partnership with Al-Rifai Steel
KIA and CBE agree to sell their stake in AAIB
SWDY Q3 2023: Going Strong
EGAL Q1 2023/24 prelim.: Extraordinary net profit on higher revenues and gross profit margin
ALCN Q1 2023/24: Strong net profits on higher revenues and net finance income
DSCW offer repriced
EAST raised its selling prices across the board
MACRO
The Saudi Tamer Group eyes a stake in UCP
Sources said that the Saudi-based Tamer Group is interested in acquiring up to 30% of United Co. for Pharmaceuticals (UCP), an Egyptian pharma distributor. Sources added that the American-based AmerisourceBergen will be the seller, where it owns 50% of UCP, the deal should be worth USD35mn. (Asharq Business)
A GCC fund invests USD200mn in partnership with Al-Rifai Steel
Al-Rifai Steel group announced that it reached a preliminary agreement with a Saudi-Emirati investment fund to expand the company's production of rebar and establish a factory for billet production. The fund is to invest USD200mn for a 50% stake and the final contracts are expected to be signed in the current month. (Al-Borsa)
KIA and CBE agree to sell their stake in AAIB
A recent Kuwaiti government document revealed that the Kuwait Investment Authority (KIA) has agreed with the Central Bank of Egypt on a joint course to divest their shares in the Arab African International Bank (AAIB). The agreement includes reassigning Citigroup as a financial advisor to update a previous study it conducted for the authority on the divestiture process. Both the Central Bankand the Kuwait InvestmentAuthority contribute equal shares in the Arab African International Bank, amounting to 49.36%. (Economy plus)
CORPORATE
SWDY Q3 2023: Going Strong
Elsewedy Electric's [SWDY] consolidated 9M 2023 net profits came in at EGP8.1bn (161% y/y, in line with Prime Research’s estimates), on revenues of EGP108.8bn (+74% y/y, in line with Prime Research’s estimates). The revenue mix was as follows:
· The wires & cables segment recorded revenues of EGP59.6bn in 9M 2023 (+97% y/y +7% vs Prime Research’s estimates), contributing 55% of total sales.
· The turnkey projects segment recorded revenues of EGP36.5bn in 9M 2023 (+40% y/y, -7% vs. Prime Research estimates), contributing 34% of total sales.
· Turnkey projects backlog reached EGP111bn, with EGP7bn of new awards during Q3 2023.
· Other business segments recorded revenues of EGP12.3bn during the period (+200%, +9% vs. Prime Research estimates), contributing the remaining 11% of total sales.
A wider gross margin: GPM reached 18.9% (+5.4pp y/y, +2.5pp vs Prime Research estimates), supported by the increase in the wires & cables margins which reached 21.2% (+8pp y/y). GPM for the turnkey segment increased slightly to 11.2% (+0.8pp y/y). Other electrical products and renewables segments maintained the highest margins at 54% and 53% respectively. (Company disclosure)
EGAL Q1 2023/24 prelim.: Extraordinary net profit on higher revenues and gross profit margin
Egypt Aluminum [EGAL] reported its Q1 2023/24 preliminary results, posting a 153% y/y growth in net profits to EGP163mn on higher revenues of EGP5.99bn (+72% y/y) and improved gross profit margin to 33% (+7pp y/y). (Company disclosure)
ALCN Q1 2023/24: Strong net profits on higher revenues and net finance income
Alexandria Container Handling Co. [ALCN] reported its Q1 2023/24 results posting a 46% y/y growth in net profits to EGP980mn on:
· Higher revenues of EGP1.1bn (+29% y/y).
· Better gross profit margin of 76.6% (+2.3pp y/y).
· Strong growth in net finance income to EGP199mn (+99% y/y). (Company disclosure)
DSCW offer repriced
Toma for Commercial & Industrial Investments and Maged Samir Toma consortium repriced the offer to acquire up to 46.9% from Dice Sport & Casual Wear [DSCW] shares to be for EGP0.80/share, which is 23% higher than the initial offer price. (Company disclosure)
EAST raised its selling prices across the board
Eastern Co. [EAST] BoD approved raising all of its brands' selling prices by 12-33%. This comes after the government's approval of a law that allows cigarette companies to raise prices by 12% annually for the next 5-years. (Company disclosure)
MARKETS PERFORMANCE
Key Dates
9-Nov-23
EFIH: Cash dividend / Payment date for a dividend of EGP0.177/share
DOMT: OGM / Approving the proposed dividends.
12-Nov-23
CIRA: Cash dividend / Payment date for a dividend of EGP0.24/share
EKHO: BoD meeting / Discussing financial results.
14-Nov-23
ISPH: BoD meeting / Discussing financial results.
MSCI: MSCI's November 2023 Semi-Annual Index Review Announcement.
ETEL: Conference Call / Discussing Q3 2023 financial results.
20-Nov-23
EGAL: Cash dividend / Deadline for eligibility for a dividend of EGP6.5/Share.
23-Nov-23
EGAL: Cash dividend / Payment date for a dividend of EGP6.5/share.
CSAG: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
CSAG: EGM / Approving increasing the issued capital & amending Article No. 3 of the company's bylaws.
TALM: OGM / Approving financial statements ending 31 August 2023 and the proposed dividends.
26-Nov-23
EFID: EGM / Discussing capital reduction & amending Articles No. 3, 6 & 7 of the company's bylaws.
27-Nov-23
ETEL: EGM / Amending Article No. 5 of the company's bylaws.
30-Nov-23
ZMID: Cash dividend / Payment date for a dividend of EGP0.10/share (2nd installment).