Today’s Top News & Analysis
Commercial International Bank (CIB) — Core Coverage Update
Oil price drop below USD85/bbl
Orascom Investment Holding reports Q3 2022 results
Port Said Container Handling temporarily listed; Damietta Container Handling to go
ACAMD receives an offer to develop Zefta land
Foodico still in the process to amend the purpose of its land plot
NEW RESEARCH
Commercial International Bank (CIB) — Core Coverage Update
Still Spearheading: 12MPT upped, yet downgraded to N/M on price rally
In this note, we revisit our assumptions and revise our financial model for Commercial International Bank [COMI]. This is in view of the latest developments in the banking sector, CBE policy decisions made since our last update, and COMI’s own record-breaking results seen in Q3 2022. Indeed, we had published a Core Coverage Update on 27 September 2022, affirming our positive outlook on COMI. Since then, our 12MPT of EGP41.1/share materialized, with COMI delivering a 69% return in two months’ time. Today, we see major catalysts and a higher potential for the name in the coming months. However, we downgrade our rating from OW/M to N/M, albeit with a 19% higher 12MPT of EGP49.1/share (+16% upside).
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MACRO
Oil price drop below USD85/bbl
Oil prices fell over 3% on Monday, following the U.S. stock markets lower, after U.S. service sector data raised worries that the Federal Reserve could continue its aggressive policy tightening path. (Reuters)
CORPORATE
Orascom Investment Holding reports Q3 2022 results
Orascom Investment Holding's [OIH] Q3 2022 net earnings skyrocketed to EGP160mn vs. a net loss of EGP0.5mn a year earlier, due to the increase in operating income to EGP149mn vs. an operating loss of EGP54mn a year earlier. Operating income was driven by the reversal of a provision of EGP195mn vs. a provision charge of EGP11mn in Q3 2021. Also, operating revenues (from recreation activities) rose to EGP21mn vs. EGP4mn a year ago. (Company disclosure)
Port Said Container Handling temporarily listed; Damietta Container Handling to go
The EGX Listing Committee has agreed to temporarily list the shares of Port Said Container Handling Co. [POCO] on the EGX, giving the company six months to meet the minimum requirements for the IPO. It was reported that POCO will offer c.25% of its shares to the public. In similar news, Damietta Container Handling Co. (DCHC) has appointed FinBi Financial Advisory to assign a fair value for the company ahead of its IPO. (Amwal Al-Ghad)
ACAMD receives an offer to develop Zefta land
Arab Co. for Asset Management & Development [ACAMD] received an offer from a consortium of developers in order to obtain the right of developing Zefta land plot. (Arab Finance)
Foodico still in the process to amend the purpose of its land plot
Ismailia National Food Industries [INFI] said it is still in the process of finalizing necessary procedures in order to change the purpose of part or all of its land plot to residential activities. (Arab Finance)
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