Today’s Top News & Analysis
Egypt's gold reserves up; foreign currency reserves down in March 2023
Suez Canal revenues up 38.5% y/y in March 2023
Trade balance deficit declines by 47% y/y in January
Supply Ministry sells yellow corn to poultry feed factories
Egypt to open global bids for gold exploration tomorrow
Egypt’s automotive imports fall 63% in January 2023
IDHC 2022: Lower earnings on lower COVID-related revenues; dividend decision postponed
e-finance signs an MoU with KSA-based Thiqah
Speed Medical to kick off its 50% capital increase next month
Macro
Egypt's gold reserves up; foreign currency reserves down in March 2023
Egypt's gold reserves increased by USD578mn m/m to USD7.95bn in March 2023. On the other hand, the country’s foreign currency reserves declined by USD485mn m/m to USD26.47bn in March 2023. (Al-Mal)
Suez Canal revenues up 38.5% y/y in March 2023
Suez Canal revenues recorded USD832mn in March 2023 vs. USD602mn in March 2022 (+38.5% y/y). This came from the passage of 2,191 ships during March vs. 1,816 a year before (+20.6% y/y). (Al-Mal)
Trade balance deficit declines by 47% y/y in January
The Egyptian trade balance deficit has declined by 47% y/y to USD2.48bn compared to USD4.68bn in January 2022. Exports declined slightly by 7.1% y/y to USD3.85bn in January 2022. Imports also declined by 28% y/y to USD6.33bn in January 2023. (Economy Plus)
Supply Ministry sells yellow corn to poultry feed factories
Supply Ministry is selling imported yellow corn to medium-sized poultry feed factories with production capacity from 20-100 tons/day through the Egyptian Mercantile Exchange (EMX). The factories can register until 11 April. (Al-Mal)
Egypt to open global bids for gold exploration tomorrow
Egypt intends to launch its first global bid for gold exploration during 2023 in five areas in the Eastern Desert, through Shalatin Mineral Resources Co. The bidding will run from 10 April to 10 August 2023. The areas that will be offered for exploration in the Eastern Desert are the following: Fatiri, Al-Baramiyah, Aqoud, Umm Oud, and Hamata. (Asharq Business)
Egypt’s automotive imports fall 63% in January 2023
According to Automotive Marketing Information Council (AMIC), Egypt’s automotive imports fell to USD190.6mn in January 2023 (-63% y/y) as:
· Passenger car imports fell to USD100.7mn (-71% y/y).
· Bus imports fell to USD0.1mn (-86% y/y).
· Truck imports fell to USD16mn (-72% y/y).
· Special-use vehicle imports fell to USD11.8mn (-29% y/y). (Al-Mal)
Corporate
IDHC 2022: Lower earnings on lower COVID-related revenues; dividend decision postponed
Integrated Diagnostics Holding Co. [IDHC] reported 2022 net profits of EGP541mn (-62% y/y) on lower revenues of EGP3.6bn (-31% y/y) driven by a 75% y/y drop in COVID-19-related revenues to EGP702mn. Non-COVID-19 (conventional) revenues started to normalize after the pandemic, recording an 18% y/y growth in revenues to EGP2.9bn. This was driven by higher number of conventional tests performed to c.31mn (+9% y/y) and higher average revenue per conventional test to EGP94 (+9% y/y). Overall, the number of tests per patients grew 15% y/y to 3.7 in 2022.
Meanwhile, GPM narrowed by 13pp y/y to 41%, driven by:
· Normalization of margins after the pandemic.
· Higher direct salaries and wages.
· Higher depreciation expense on new branch additions.
· Slight increase in raw materials prices due to the EGP devaluation.
As for Q4 2022, net profits declined by 56% y/y to EGP137mn on lower revenues of EGP805mn
(-45% y/y). The drop in revenues came due to a rapid decline in COVID-19-related revenues by 97% y/y to EGP24mn as COVID-19 was gradually phasing out. Meanwhile, conventional revenues grew by 31% y/y to EGP780mn. Similarly, GPM dropped by 9pp y/y to 35% for the same reasons as those driving 2022.
On a separate note, IDHC’s BoD postponed its decision to distribute dividends for the year 2022 to its meeting in August 2023. While the company confirmed commitment to its long-term dividend policy, the postponement decision was due to the ongoing uncertainty and lack of FX availability in Egypt, according to IDHC’s management. (Company disclosure)
e-finance signs an MoU with KSA-based Thiqah
e-finance [EFIH] signed an MoU with Thiqah Business Services, a digital transformation player in Saudi Arabia. The company hopes such cooperation will position EFIH in the Saudi market while serving as a launch pad into a number of new markets with the support of the Public Investment Fund (PIF). (Company disclosure)
Speed Medical to kick off its 50% capital increase next month
The Financial Regulatory Authority (FRA) approved Speed Medical’s [SPMD] 50% rights issue where the company will increase its paid-in capital by EGP111mn by offering c.555mn shares at a par value of EGP0.2/share. The capital increase will take place between 2 May and 1 June 2023, and the last date for rights issue eligibility is 26 April 2023. (Company disclosure)
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