Today’s Top News & Analysis
NFAs dive further into the red in September 2022
IMF is praising recent monetary actions by the CBE
Monthly auto sales hit multi-year low
Egypt to receive funding from IFAD to support small-scale rural farmers
ALCN posts 2021/22 results, proposes a dividend of EGP1.36/share
IDHC to open a diagnostic center in Saudi Arabia
Ezz Steel ups its selling prices
Orascom Construction commenced construction in Ras Ghareb wind farm
Egypt Aluminum posts preliminary Q1 2022/23
MACRO
NFAs dive further into the red in September 2022
After two months of a slight decrease, Net Foreign Assets (NFAs) of the total banking system exhibited a strong decline in September 2022 to negative EGP441bn against negative EGP386bn in August 2022. This marks a full year since the start of the deterioration in September 2021. We expect NFAs could begin to recover in 2023 after the latest EGP devaluation and the new IMF program. (CBE)
IMF is praising recent monetary actions by the CBE
The IMF’s Middle East & Central Asia head has praised the CBE policy moves last week, saying that the shift to a flexible exchange rate will protect the economy against external shocks and calling the decision to raise interest rates a step in the right direction. (Enterprise)
Monthly auto sales hit multi-year low
Monthly auto sales fell in September 2022 to their lowest level since 2018as import restrictions continued to weigh on the market. Only 6,800 passenger cars were sold during the month (-60% y/y). (Enterprise)
Egypt to receive funding from IFAD to support small-scale rural farmers
Egypt will reportedly obtain USD2bn from the UN’s International Fund for Agricultural Development (IFAD) and unnamed partner organizations to support small-scale rural farmers to boost food security. (Enterprise)
CORPORATE
ALCN posts 2021/22 results, proposes a dividend of EGP1.36/share
Alexandria Container & Cargo Handling’s [ALCN] full-year results showed a net profit of EGP2.02bn (+44% y/y) on revenues of EGP2.8bn (+19% y/y). Such growth came from handling 840k containers throughout the year with an average revenue/container of EGP3,380 (+18% y/y). GPM came in at 69.4% (+5pp y/y), the highest in the last four fiscal years. On another note, ALCN proposed a dividend of EGP1.36/share, implying a 10.9% yield and a payout ratio of 100%. We note that ALCN currently trades at a TTM P/E of 7.1x. (Company disclosure)
IDHC to open a diagnostic center in Saudi Arabia
Integrated Diagnostics Holdings [IDHC] announced signing a joint venture with Biolab and Izhoor Holding Medical Company to launch a diagnostic center in Saudi Arabia. The investment is expected to be worth USD20mn. IDHC and Biolab will have a combined 50% stake, while Izhoor will own the other 50%. (Company disclosure)
Ezz Steel ups its selling prices
Ezz Steel [ESRS] upped its selling prices to EGP19,650/ton, including VAT, due to the recent weakness in the EGP. (Company release)
Orascom Construction commenced construction in Ras Ghareb wind farm
Orascom Construction [ORAS] announced the start of construction of a 500MW wind farm in Ras Ghareb in a consortium with the French ENGIE, Japanese Toyota Tsusho, and the Ministry of Electricity. (Company disclosure)
Egypt Aluminum posts preliminary Q1 2022/23
Egypt Aluminum’s [EGAL] preliminary Q1 2022/23 net earnings came in at EGP642mn (+110% y/y). Top line grew to EGP3.4bn (+4% y/y), while GPM came in at 26% vs. 16% a year earlier. (Company disclosure)
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