New Research
Obour Land Food Industries [OLFI] – Resilience is Key
Different sectors have been affected by the recent EGP devaluation and USD shortage in different ways. In this note, we review our assumptions for Obour Land Food Industries [OLFI] in light of these two factors and OLFI’s record-breaking Q4 2022 results. More recently, OLFI’s stock price surpassed our 12MPT of EGP9.2/share dated 14 November 2022. Today, our updated valuation model suggests that OLFI’s 12MPT hovers around EGP11.8/share. Hence, we downgrade our rating from Overweight/Medium Risk to Neutral/Medium Risk on recent price rally.
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Today’s Top News & Analysis
New USD100mn Japanese braided cables facility
MoU between Egypt and South Korea to enhance trade
EFG Hermes Holding exits Omani market
AUTO to launch E’tman to finance SMEs
Macro
New USD100mn Japanese braided cables facility
Japan’s Sumitomo Group has been granted a golden license to develop a USD100mn plant to produce electric braided vehicle cables, Sumitomo’s largest braided cable factory. The new facility will be located in a free zone covering an area of 150,000 sqm. (Economy Plus)
MoU between Egypt and South Korea to enhance trade
The Egyptian Customs Authority will sign an MoU with its South Korean counterpart at the end of the month to enhance customs cooperation and facilitate trade movement. The agreement will also help spur additional South Korean investments. (Al-Mal)
Corporate
EFG Hermes Holding exits Omani market
EFG Hermes Holding [HRHO] has completed its exit from Oman as part of its plan to exit three markets, in an effort to drive shareholders’ value by simplifying its operations, re-directing resources and improving return on equity metric. The company does not expect to exit any other market apart from Jordan and Pakistan. HRHO expects a minimal impact on its financial statements during 2023 due to the aforementioned exits. (Company disclosure)
AUTO to launch E’tman to finance SMEs
GB Corp [AUTO] obtained initial approval from the Financial Regulatory Authority (FRA) to launch E’tman, a credit company to finance small- and medium-sized enterprises (SMEs), with an initial paid-in capital of EGP30mn. (Al-Mal)
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