Today’s Top News & Analysis
Saudi Arabia is rolling over its deposit at the CBE
The New and Renewable Energy Authority to open bids on new solar investments
MOPCO posts Q3 2022 results
GB Auto filed a case against the Algerian Republic
Sidpec announces investment plan for 2023
Taaleem to acquire a university in New Cairo
EFG Hermes conduct its advisory of Taaleem's IPO
Misr Beni Suef Cement will appeal the court ruling against ASEC
Minapharm Pharmaceuticals announced Q3 2022 results
MACRO
Saudi Arabia is rolling over its deposit at the CBE
Saudi Arabia is rolling over its USD5bn deposit at the Central Bank of Egypt (CBE) for an additional year to help shore up Egypt’s finances and contain the fallout from Russia’s war in Ukraine. (Enterprise)
The New and Renewable Energy Authority to open bids on new solar investments
The New and Renewable Energy Authority is looking to offer multiple land plots in Aswan to build solar energy plants by the end of 2022. (Economy Plus)
CORPORATE
MOPCO posts Q3 2022 results
MOPCO [MFPC] Q3 2022 consolidated net profit came in at EGP1.3bn (-1.4% y/y). Flattish bottom line drop came despite 25% annual growth in top line of EGP3.6bn. Top line growth came in light of weaker local currency and higher global urea prices. We note that the reasons for such divergence between bottom line and top line growth are:
(1) Lower GPM of 47% vs. 55% a year earlier on higher Natural Gas (NG) prices.
(2) Considerably higher effective tax rate of 21% vs. 8% a year earlier.
Meanwhile, MFPC's 9M 2022 net earnings grew to EGP5.0bn (+44% y/y) on higher top line of EGP12.3bn (+74% y/y). We note that export revenues contributed 66% to total revenues. MFPC is currently traded at TTM P/E of only 4.7x. Our 12MPT for MFPC is EGP180/share (ETR +37%). (Company disclosure)
GB Auto filed a case against the Algerian Republic
GB Auto [AUTO] filed an arbitration case against the Algerian government in view of the damage it suffered in the hands of the Algerian government actions towards its investments in Algeria (i.e. GBR Auto and GBR Services). AUTO mentioned that the losses it suffered are at least USD24mn (i.e. EGP588mn). We note that such investments were nonoperational for number of years. (Company disclosure)
Sidpec announces investment plan for 2023
Sidi Kerir Petrochemicals' [SKPC] BoD held on 28 November 2022 has ratified the company’s investment plan for 2023. SKPC budgeted investments next year amount to EGP1.6bn, distributed in the following manner:
(1) EGP555mn for new projects.
(2) EGP254nm for maintenance.
(3) EUR30mn (i.e. EGP780mn) to fund number of capital increase attempts for investments owned by SKPC. (Company disclosure)
Taaleem to acquire a university in New Cairo
Taaleem Management Services [TALM] will take control of an under-construction university in New Cairo. TALM will have a 32% stake through a capital increase of EGP32mn in the target company. Moreover, TALM may increase its stake to 51% after a year of student enrollment. (Company disclosure)
EFG Hermes conduct its advisory of Taaleem's IPO
The investment banking arm of EFG Hermes Holding [HRHO] has successfully conducted its advisory for Taaleem Holdings’ IPO in UAE, with a market cap of USD204mn. Taaleem Holdings is a UAE based company. (Arab finance)
Misr Beni Suef Cement will appeal the court ruling against ASEC
Misr Beni Suef Cement [MBSC] announced that it will appeal the court ruling which fined MBSC EGP380mn in the lawsuit which MBSC has lost last September against ASEC, a subsidiary of Qalaa Holdings [CCAP]. (Al-Mal)
Minapharm Pharmaceuticals announced Q3 2022 results
Minapharm Pharmaceuticals [MIPH] reported Q3 2022 consolidated net profits of EGP184mn (+80% y/y) on higher revenues at EGP984mn (+30% y/y). GPM came in at 43%. (+8pp y/y). (Company disclosure)
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