Today’s Top News & Analysis
The cabinet to launch a unit for state-owned companies
SUGR Q1 2024: Lower net profits on weaker operations and excessively higher other expenses
EKHO Q1 2024: Non-operations save the net profits
EMFD: Acquisition offer got approved
TMGH: 153% y/y increase in contracted sales till 14 May 2024
CFGH 2022/23: A 3.2% y/y growth in net profits
ESGA Q1 2024: 15% y/y decline in earnings on higher FX losses
MACRO
The cabinet to launch a unit for state-owned companies
In the cabinet's weekly meeting, it is agreed to launch a follow-up unit aiming to regulate and follow the state's stakes in the companies. The board of this unit will be responsible for:
· The implementation of the government's ownership policies.
· The identification of companies that the government should exit either fully or partially.
· The determination of exit strategies.
· The proposal of strategies to encourage the participation of the private sector in certain sectors.
The development of legal frameworks to enhance the government's companies. (Enterprise)
CORPORATE
SUGR Q1 2024: Lower net profits on weaker operations and excessively higher other expenses
Delta Sugar [SUGR] posted a 33% y/y decline in net profits to EGP217mn in Q1 2024 due to the weaker revenues of EGP741mn (-4% y/y) and the 1.3pp y/y lower gross profit of 29%. However, the net profits declined aggressively due to the excess growth in other expenses to EGP78mn vs. only EGP4mn last year.
Results imply a TTM P/E of 5.1x. (Company disclosure)
EKHO Q1 2024: Non-operations save the net profits
Egypt Kuwait Holding Co. [EKHO] posted a 4.3% y/y growth in net profits to USD63mn in Q1 2024 despite:
· A 16% y/y decline in revenues to USD180mn
· A 6pp y/y decline in the gross profit margin to 40%.
The growth in net profits was driven by non-operational income:
· A 32% y/y growth in investment income to USD12mn.
· Strong net finance income of USD36mn vs. only USD5mn last year.
Results imply a TTM P/E of 4.0x. (Company disclosure)
EMFD: Acquisition offer got approved
Albro North Coast for Developments and Skytower for Real Estate Developments’ shareholders approved the preliminary non-binding offer submitted by Emaar Misr for Development [EMFD]. (Company disclosure)
TMGH: 153% y/y increase in contracted sales till 14 May 2024
Talaat Moustafa Group Holding [TMGH] announced that contracted real estate sales till mid-May 2024 reached EGP86bn vs. EGP34bn in the comparable period. (Company disclosure)
CFGH 2022/23: A 3.2% y/y growth in net profits
The newly listed Concrete Fashion Group [CFGH] posted a 3.2% y/y growth in net profits to USD12.8mn in 2022/23 on revenues of USD151mn (+3.4% y/y). Meanwhile, the gross profit and EBITDA margin came in at 36.1% (+2.3pp y/y) and 24.8% (+5.8pp y/y), respectively.
Results imply a P/E of 1.9x. (Company disclosure)
ESGA Q1 2024: 15% y/y decline in earnings on higher FX losses
Egyptian Satellites Company [ESGA] reported a 15% decline in earnings in Q1 2024 to USD6.4mn on higher FX losses of USD8.5mn and a decline of 1% in revenues. Excluding the impact of FX losses, clean earnings would have grown 38% y/y to USD15mn. (Company disclosure)
Markets Performance
Key Dates
18-May-24
HRHO: OGM / Approving financial statements ending 31 Dec. 2023.
ISPH: BoD meeting / Discussing financial results.
20-May-24
ORAS: OGM / Approvig financial statements ending 31 Dec. 2023 and the proposed dividends.
23-May-24
HELI: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
MPC Meeting / Determining the CBE's policy rate.
26-May-24
OIH: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
SKPC: Cash dividend / Deadline for eligibility for a dividend of EGP1.25/Share.
OFH: OGM / Approving financial statements ending 31 Dec. 2023.
MCRO: OGM / Approving financial statements ending 31 Dec. 2023.
CICH: Cash dividend / Deadline for eligibility for a dividend of EGP0.2169/Share.
SWDY: Cash dividend / Deadline for eligibility for a dividend of EGP0.50/Share.
27-May-24
TMGH: Cash dividend / Deadline for eligibility for a dividend of EGP0.22/Share.
MASR: Cash dividend / Deadline for eligibility for a dividend of EGP0.20/Share.
ZMID: Cash dividend / Deadline for eligibility for a dividend of EGP0.150/Share.
29-May-24
SKPC: Cash dividend / Payment date for a dividend of EGP0.75/Share (1st installment)
CICH: Cash dividend / Payment date for a dividend of EGP0.2169/Share.
AMIA: Stock dividend / Last date for eligibility for a 0.10-for-1 stock dividend.
SWDY: Cash dividend / Payment date for a dividend of EGP0.50/Share.
30-May-24
MASR: Cash dividend / Payment date for a dividend of EGP0.10/Share (1st installment)
AMIA: Stock dividend / Date for distributing a 0.10 for-1 stock dividend.
CCAP: OGM / Discussing agenda items.
TMGH: Cash dividend / Payment date for a dividend of EGP0.11/Share (1st installment)
ZMID: Cash dividend / Payment date for a dividend of EGP0.05/Share (1st installment)
2-Jun-24
CSAG: OGM / Approving the estimated budget of FY 2024/2025.
3-Jun-24
MSCI / MSCI's May 2024 Semi-Annual Index Review Effective Date.
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.