Today’s Top News & Analysis
FRA amends financial valuation standards for startups
Neptune begins drilling operation in Egypt
Egypt's industrial exports rise 10% y/y in 7M 2023
GAFI approves to develop Tarboul Industrial City as an investment zone
Israel approves exporting more natural gas to Egypt
PHDC Q2 2023: Earnings stable y/y; H1 2023 new sales setting a new record
EZDK proceeding with its de-listing procedures
Aman Holding plans to apply for the digital banking license
MACRO
FRA amends financial valuation standards for startups
The Financial Regulatory Authority amended Egypt's financial valuation standards for startups. The changes aim to provide tailored valuation methodologies for emerging companies, enabling them to secure the necessary funding for growth. The new approach includes risk capital methods for pre-revenue and pre-sales stages, ensuring an accurate assessment of startups' potential and aiding investors in making informed decisions. (Al-Mal)
Neptune begins drilling operation in Egypt
Neptune Energy, recently acquired by Eni, began drilling at its operated Yakoot exploration well in the North West El Amal Concession in the southern Gulf of Suez. ADES is carrying out the exploration operation, with a final target depth of around 3,600 m. (Zawya)
Egypt's industrial exports rise 10% y/y in 7M 2023
Egypt's industrial exports grew 10% y/y to USD2.5bn in 7M 2023. The segments that witnessed the highest growth were:
· Metalworking products (+88% y/y).
· Machinery and equipment (+69% y/y).
· Means of transportation (+67% y/y).
· Household appliances (+55% y/y).
· Cables (+52% y/y).
· Electrical industries and electronics (+46% y/y). (Al-Mal)
GAFI approves to develop Tarboul Industrial City as an investment zone
Egypt's General Authority for Investment & Free Zones (GAFI) approved the establishment of the USD16bn Tarboul Industrial City under the investment zones system in Giza. GV Investments is developing the 26,000-acre project, located in Atfih City. We note that under the Egyptian investment law, an investment zone is characterized as a designated geographical area with clear boundaries, intended for conducting specialized investment activities and related complementary endeavors. (Zawya)
Israel approves exporting more natural gas to Egypt
Israel approved exporting more natural gas to Egypt from the Tamar field in the Mediterranean. The details of the export agreement are as follows:
· Exporting c.3.5bn cubic meters annually for c.11 years, totaling 38.7bn cubic meters.
· The new exports are contingent on the increase of gas production from the Tamar field by 6bn cubic meters annually (a 60% increase over current yearly production) starting from 2026.
· An option to increase the total to 44bn cubic meters depending on future production levels (the original offer asked for 60bn cubic meters).
The expansion is currently awaiting the final investment decision from the field operators and will involve adding a third transmission line from the Tamar wells to the liquefaction station. (Asharq Business)
CORPORATE
PHDC Q2 2023: Earnings stable y/y; H1 2023 new sales setting a new record
Palm Hills Developments’ [PHDC] H1 2023 net income came at EGP608mn (+9% y/y) on revenues of EGP6.9bn, which is almost the same as the comparable period. GPM came at 34%, same as the year before. New residential and commercial sales grew by 84% y/y to EGP19.6bn in H1 2023 and EGP12.9bn in Q2 2023 (+150% y/y, +89% q/q). H1 2023 new sales came from:
· West Cairo: EGP13.2bn (+151% y/y) or 67% of new sales with 1,092 units sold.
· East Cairo: EGP2.9bn (+15% y/y) or 15% of new sales with 277 units sold.
· North Coast & Alexandria: EGP3.5bn (+89% y/y) or 18% of new sales with 319 units sold. (Company disclosure)
EZDK proceeding with its de-listing procedures
The Securities Listing Committee at the Egyptian Exchange (EGX) approved proceeding with the de-listing procedures of Al Ezz Dekheila Steel Co. (EZDK) [IRAX]. The committee has instructed its Operations Department to coordinate with EZDK to launch a private operations market and establish a code for the delisting shares account. Meanwhile, EZDK will release an announcement soon containing the details for purchasing the shares from shareholders seeking to exit. (EGX)
Aman Holding plans to apply for the digital banking license
Aman Holding, a subsidiary of Raya Holding for Financial Investments [RAYA], plans to apply for the new digital banking license. The plan also includes attracting strategic foreign investors through a capital increase to assist in launching the digital bank. (Al-Mal)
Key Dates
24-Aug-23
MTIE: Stock dividend / Date for distributing a 0.25 for-1 stock dividend.
26-Aug-23
MICH: BoD meeting / Follow up on production, sales and exports.
27-Aug-23
SPMD: OGM / Approving financial statements ending 31 Dec. 2022.
28-Aug-23
ZMID: Cash dividend / Deadline for eligibility for a dividend of EGP0.150/Share.
30-Aug-23
ORAS: Financial results Announcement / Q2 2023 financial results' announcement.
31-Aug-23
ZMID: Cash dividend / Payment date for a dividend of EGP0.05/share (1st installment).
PHAR: Cash dividend / Payment date for a dividend of EGP1.00/share (2nd installment).
1-Sep-23
MSCI / MSCI's August 2023 Quarterly Index Review Effective Date.
5-Sep-23
Egypt PMI / August 2023 reading.
6-Sep-23
ELSH: OGM / Approving the decisions of the company’s board of directors in its meeting held on 15/6/2023.
ELSH: EGM / Amending some articles of the Company's bylaws.