Today’s Top News & Analysis
Egypt to announce its IPO program within weeks
S&P affirms Egypt’s rating at B with a Stable outlook
Imports backlog cleared
25% increase in Aluminum prices in two weeks
FY2023/24's budget targets GDP growth above 5.5%
GASC sells 20,000 tons of Russian wheat
COMI fully acquires Mayfair-CIB; raises capital by 0.7% for employee reward system
Elsewedy Electric's subsidiary wins a USD328mn award in Qatar
EGBE announces 2022 preliminary results
CIRA Education reports its Q1 2022/23 results
Sheeni's Q2 2022/23 preliminary results
MACRO
Egypt to announce its IPO program within weeks
The Egyptian Prime Minister announced that the plan for the long-awaited government IPO program will be announced within two weeks. (Asharq Business)
S&P affirms Egypt’s rating at B with a Stable outlook
S&P Global Ratings affirmed Egypt’s B credit rating with a Stable outlook for the second time in three months on the back of expectations for the current account deficit (CAD) to decrease on a flexible FX rate, growing tourism, and higher petroleum exports. (Al-Mal)
Imports backlog cleared
Prime Minister, Mustafa Madbouly, announced that the imports backlog has been cleared, and back to its normal levels. (Enterprise)
25% increase in Aluminum prices in two weeks
The prices of Aluminum have increased during the past two weeks by 25%. As the price per ton went up from EGP93,000 to EGP116,000 on the back of the EGP devaluation. (Al-Borsa)
FY2023/24's budget targets GDP growth above 5.5%
Finance Ministry has stated that FY23/24's budget targets a GDP growth of above 5.5%, a primary surplus of at least 2% and a decrease in current account deficit (CAD). (Al-Borsa)
GASC sells 20,000 tons of Russian wheat
The General Authority for Supply Commodities (GASC) sold 20,000 tons of Russian wheat through the Egyptian Commodities Exchange, for EGP10,500/ton. (Al-Borsa)
CORPORATE
COMI fully acquires Mayfair-CIB; raises capital by 0.7% for employee reward system
Commercial International Bank - Egypt [COMI] has reportedly received the Central Bank of Kenya's (CBK) approval to acquire the remaining 49% of Mayfair-CIB to become a fully-owned subsidiary of the bank. COMI had previously acquired a 51% stake in the Kenyan bank back in April 2020 for USD35.4mn. On a separate note, COMI’s BoD proposed increasing the bank's paid-in capital from EGP30bn to EGP30.2bn (c.+0.7%) or by EGP204mn distributed over 20mn shares at a par value of EGP10/share. This increase is part of the bank's employee reward system and is subject to OGM and CBE approval. (Asharq Business, Company disclosure)
Elsewedy Electric's subsidiary wins a USD328mn award in Qatar
Elsewedy Cables Qatar, a subsidiary of Elsewedy Electric [SWDY], received a provisional letter of award from Qatar General Electricity & Water Corporation (Kahramaa) for the establishment of new underground Extra High Voltage/High Voltage Cables (EHV/HV) in addition to different voltage levels from 132kV, 66kV and modifications of the existing circuits. The project value exceeds USD328mn and is expected to take 30 months to complete. (Company disclosure)
EGBE announces 2022 preliminary results
Egyptian Gulf Bank [EGBE] announced its preliminary results for 2022, having managed to grow its net income by 23% to EGP856mn, partially on the back of:
(1) A 10% increase in net interest income to EGP3bn.
(2) A significant decrease in the bank's effective tax rate to 47%, down from 55% a year earlier.
This pushes EGBE's 2022 ROE higher by almost 400bps to 16.1%. EGBE is currently traded at a P/E of 8.4x and a P/BV of 1.3x. (Company disclosure)
CIRA Education reports its Q1 2022/23 results
CIRA Education [CIRA] reported consolidated Q1 2022/23 net profits of EGP107mn (+8% y/y), on higher revenues of EGP633mn (47% y/y). Revenues grew at the back of the increased students enrollments in Badr University in Cairo and its newest branch in Assiut, reaching c.16,000 students. However, gross profit margin declined by 4.3pp y/y to 48%. Our 12MPT for CIRA is EGP20.6/share implying a TTM P/E of 19.8x. (Company disclosure)
Sheeni's Q2 2022/23 preliminary results
General Co. for Ceramics & Porcelain Products’ (Sheeni) [PRCL] preliminary Q2 2022/23 results showed a net profit of EGP46.5mn compared to a net loss of EGP28.5mn a year before despite incurring a gross loss of EGP7mn (GLM of 5.8%). Revenues increased by 15.3% y/y to EGP120.5mn, powered by selling 2,263K sqm of ceramics (+7% y/y). (Company disclosure)
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