KEY THEMES
The Egyptian government, led by President El-Sisi, has brought the health care sector back in the limelight. Not only will the government work on developing the country's pharmaceutical industry, but it will also work on propping up calibers in the sector by increasing the number of advanced national training centers. Incidentally, the Egyptian government is not alone! Dubai-based Amanat Holdings [DFM: AMANAT], which specializes in the health care and education sectors, plans to invest some AED1bn (EGP4.3bn) to acquire controlling stakes in Egyptian, Saudi, and UAE companies in the coming period.
That said, we believe the Egyptian pharma industry is worth taking another look at. Many pharma names trade at low single-digit P/Es and boast mid to high single-digit dividend yields. Many of the EGX-listed pharma names end their financials in June, so we should soon expect dividends to be paid out — a key catalyst for these stocks, let alone the potential growth in the industry, in view of the Egyptian government's initiatives to support the industry.
For a quick read of our previous pieces of Talking Pharma series, please check Talking Pharma (20 July 2020), Talking Pharma 2 (20 October 2020), and Talking Pharma 3 (3 February 2021).