Today’s Top News & Analysis
A private stake sale in Wataniya and Safi could take place in 2022
River transport may see more private sector participation
The state ownership policy document is nearly final
SODIC is looking to acquire a subsidiary of ORHD
Abu Qir reported preliminary Q1 2022/23
Alexandria Containers reported preliminary Q1 2022/23
QIA is looking to invest in the northern sea terminals
Orascom Investment addresses the impact of Cheo Technology's loan
Raya Holding buys the remaining 10.27% stake in Haier Electric
PIF reportedly acquired a stake in EIPICO
Arab Cotton Ginning’s reported 2021/22 preliminary figures
MACRO
A private stake sale in Wataniya and Safi could take place in 2022
The timing of the IPO for both Wataniya and Safi may reportedly not be in 2022; however, a private stake sale could happen before year-end. (Enterprise)
River transport may see more private sector participation
The House of Representatives gave preliminary approval to amendments modernizing a 1956 law regulating river transport. The amendments could result in more private sector participation. (Enterprise)
The state ownership policy document is nearly final
The state ownership policy document is awaiting final touches, where the final version of the document could be unveiled on the economic conference’s last day, according to Cabinet spokesman. (Enterprise)
CORPORATE
SODIC is looking to acquire a subsidiary of ORHD
SODIC [OCDI], a subsidiary of Aldar Properties [ADX: ALDAR], has reportedly submitted an initial offer to buy 100% of Orascom Real Estate, a subsidiary of Orascom Development Egypt [ORHD]. The initial offer according to news sources could value ORHD’s subsidiary at EGP2.46bn (i.e. 38% of ORHD market cap). (Hapi)
Abu Qir reported preliminary Q1 2022/23
Abu Qir Fertilizers’ [ABUK] preliminary Q1 2022/23 net income came at EGP2.8bn (+115% y/y), on 80% higher top line of EGP4.8bn. Meanwhile, GPM strengthened to 66% (+7.7pp y/y). Strong annual growth comes in light of:
(1) Still elevated urea prices.
(2) Weaker EGP, which boosted selling prices for ABUK.
Meanwhile, sequential growth was also strong. Net earnings grew by 33% q/q, whereas top line upped 12%. We note that Q4 2021/22 witnessed a one-month stoppage in Abuqir III factory due to annual maintenance, which took place in Q4 2021/22. (Company disclosure)
Alexandria Containers reported preliminary Q1 2022/23
Alexandria Container & Cargo Handling [ALCN] Q1 2022 results showed net earnings of EGP669mn (+99% y/y) on revenues of EGP851.5mn (+58% y/y). Such growth came from handling 195,751 containers (+8.1% y/y) throughout the quarter with an average revenue/container of EGP4,350 (+46.5% y/y). GPM came in at 74.3% (+11.2pp y/y), the highest in the last five years. ALCN currently trades at a TTM P/E of 7.1x. (Company disclosure)
QIA is looking to invest in the northern sea terminals
Maha Capital, a subsidiary of Qatar Investment Authority (QIA), representatives visited Port Said Container Handling yesterday to explore investment opportunities. We note that Maha Capital representatives also visited Damietta Port the day before to explore investment opportunities. We suspect that QIA might be interested to invest in either or both Damietta Container Handling and Port Said Container Handling. We note that Canal Shipping Agencies [CSAG] has a 20% stake in each of the two aforementioned companies. (Al-Mal) (Enterprise)
Orascom Investment addresses the impact of Cheo Technology's loan
Orascom Investment Holding [OIH] announced that the interest-free loan given by North Korea's Cheo Technology will not impact OIH's activities or profitability. This comes in view of the penalties imposed on bank transfers, which apply to North Korea. (Company disclosure)
Raya Holding buys the remaining 10.27% stake in Haier Electric
Raya Investment Holding [RAYA] has bought the remaining 10.27% stake in Haier-Raya Electric to reach 100%. This took place through buying 300,000 shares worth EGP48mn. (Company disclosure)
PIF reportedly acquired a stake in EIPICO
It is reported that the Saudi Public Investment Fund (PIF) acquired a 4.7% stake in EIPICO [PHAR], for EGP140mn. (Enterprise)
Arab Cotton Ginning’s reported 2021/22 preliminary figures
Arab Cotton Ginning [ACGC] consolidated KPIs for 2021/22 showed net earnings of EGP127mn vs. net losses of EGP23mn a year earlier. This was driven by an increase in revenues to EGP2bn (+63% y/y) and the improvement of GPM from 10% in 2020/21 to 20% in 2021/22. (Company disclosure)
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