Today’s Top News & Analysis
Alexandria Containers' 5M 2022/23 earnings jump 165% y/y
Speed Medical reported Q3 2022 results
TMG partners with large banks and financial institutions
EFG Hermes Holding concludes its advisory for Riyadh Cables
An investor raises its stake in Egytrans
Chimera acquires GB Lease
Raya Holding’s shareholders approve cash dividends
CORPORATE
Alexandria Containers' 5M 2022/23 earnings jump 165% y/y
Alexandria Container & Cargo Handling Co.'s [ALCN] 5M 2022/23 results showed a net profit of EGP1.5bn (+165% y/y) on higher revenues of EGP1.6bn (+73% y/y). The growth in net profits is attributable to revenue growth, a higher interest income (+122% y/y), and an FX gain of EGP226.5mn. In terms of KPIs:
· ALCN handled 319,652 containers throughout 5M 2022/23 (in line with our expectations).
· Revenue per container averaged EGP5,024 (exceeding our estimates by 14%).
· GPM came in at 77.6% (+14pp y/y), which is the highest in the last five years.
On 20 November 2022, we published a Core Coverage Report on ALCN with an Overweight rating and a 12MPT of EGP16.9/share. The stock price has rallied by more than 44% from EGP13.02/share on 20 November to close yesterday at EGP18.80/share, surpassing our 12MPT in less than a month. (Company disclosure)
Speed Medical reported Q3 2022 results
Speed Medical [SPMD] reported a consolidated net loss of EGP9mn in Q3 2022 compared to a net profit of EGP76mn a year earlier. The loss was due to a sharp decline in the top line to EGP19mn (-84% y/y). SPMD reported a gross loss margin of 45% compared to a gross profit margin of 58% last year. On a separate note, SPMD’s BoD canceled the OGM initially scheduled for 4 January 2023 to be held at a later date. (Company disclosures: 1, 2)
TMG partners with large banks and financial institutions
A strategic partnership between TMG Holding [TMGH], Banque Misr, Banque du Caire, Misr Insurance, and Allianz Egypt, will establish a real estate investment fund called Egypt Real Estate Investment Fund 1. The fund targets investments in commercial assets with a periodic return. (Youm 7)
EFG Hermes Holding concludes its advisory for Riyadh Cables
The investment banking arm of EFG Hermes Holding [HRHO] successfully concluded its advisory for Riyadh Cables’ IPO in Saudi Arabia, with an IPO size of USD378mn. This is the third advisory of HRHO this month after Americana Group and Vodacom. (Arab Finance)
An investor raises its stake in Egytrans
The Egyptian Co. for Iron & Steel Products raised its stake in Egytrans [ETRS] from 0.0128% to 1.92% by buying 1mn shares at an average price of EGP2.69/share. (Company disclosure)
Chimera acquires GB Lease
GB Capital, a subsidiary of GB Auto [AUTO], has signed an agreement with UAE-based Chimera Investments to acquire a 45% indirect stake in GB Lease for total proceeds of EGP855mn. As a result of the deal, GB Capital will own a majority stake of 55% in GB Lease. (Company disclosure)
Raya Holding’s shareholders approve cash dividends
Raya Holding’s [RAYA] shareholders approved a DPS of EGP0.035/share, implying a 1% yield. (Company disclosure)
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