Today’s Top News & Analysis
Natural gas prices up after Egypt's LNG imports halted
New bid for gold exploration in the Eastern Desert
KABO FY 2022/23: Turning to profitability on FX gains and asset sales
SKPC Q3 2023: Still going strong
SUGR Q3 2023 prelim.: Strong net profits on strong revenues
KIA eyes a stake in ISPH
Beltone to enter Jordan's consumer finance market through OFFTEC
MACRO
Natural gas prices up after Egypt's LNG imports halted
Future contracts for natural gas in Europe spiked by 4.5% on Monday due to the stoppage of LNG imports from Israel to Egypt. Furthermore, prices have also increased by 30% in the last three weeks after the Palestinian-Israeli conflict started. (Asharq Business)
New bid for gold exploration in the Eastern Desert
Egypt intends to launch a new global bid for companies to explore gold and associated minerals during the first quarter of next year 2024, according to media sources. The auction includes more than 200 sectors in the Eastern Desert, with an area of 170 square kilometers. The bid will be offered based on royalties and taxes and comes after the Shalatin Company finishes its bids for gold exploration next November. (Asharq Business)
CORPORATE
KABO FY 2022/23: Turning to profitability on FX gains and asset sales
El Nasr Clothing & Textiles Co.'s [KABO] reported its FY 2022/23 consolidated net profits of EGP53mn vs. a net loss of EGP25mn last year, due to:
· Revenues growing by 58% y/y to EGP573mn.
· Gross profit margin improved by 2pp y/y to 34%.
· FX gains of EGP14mn vs. FX losses of EGP2mn last year.
· Increase in gains from assets sale to EGP33mn vs. EGP8mn last year. (Company disclosure)
SKPC Q3 2023: Still going strong
Sidi Kerir Petrochemicals Co. (Sidpec) [SKPC] reported its preliminary 9M 2023 results, recording net profits of EGP1.8bn (+144% y/y) on higher revenues of EGP9.7bn (+68% y/y). The company’s GPM also increased to 29% (+8pp y/y). SKPC is currently trading at a TTM PE ratio of 12.2x. (Company disclosure)
SUGR Q3 2023 prelim.: Strong net profits on strong revenues
Delta Sugar [SUGR] reported 9M preliminary net profits of EGP1.4bn (+91% y/y) on a strong 81% y/y growth in revenues to EGP5.6bn and an improved gross profit margin to 36.3% growing by 2.7pp y/y.
Regarding Q3 2023, SUGR had a strong performance where net profits grew to EGP316mn (+65% y/y) on extraordinary revenues grew by 249% y/y to EGP2bn. (Company disclosure)
KIA eyes a stake in ISPH
Sources said the Kuwait Investment Authority (KIA) is eying a stake in Ibnsina Pharma [ISPH] through its investment arm EKuity Holding. KIA should buy the targeted stake from the open market as the main shareholders are not interested in selling any of their stakes. (Al-Mal)
Beltone to enter Jordan's consumer finance market through OFFTEC
Unnamed sources revealed that Beltone Financial Holding [BTFH] plans to enter Jordan's consumer finance market through OFFTEC Holding, a financial institution established in 2004 and publicly traded on Amman exchange since 2011. Sources added that the plan is to acquire a stake in OFFTEC's subsidiary, Al-Wasleh, for up to USD20mn before the end of this year. This would make Beltone the second Egyptian consumer finance company to enter Jordan after Valu the consumer financing arm of EFG Holding [HRHO] announced expansion plans into Jordan in 2024. (Asharq Business)
MARKETS PERFORMANCE
Key Dates
31-Oct-23
ORAS: Cash dividend / Payment date for a dividend of EGP8.51/share.
MCRO: Cash dividend / Payment date for a dividend of EGP0.096/share (2nd installment).
2-Nov-23
MPC Meeting / Determining the CBE's policy rate.
4-Nov-23
MFPC: EGM / Approving the merger contract & amending some articles of the Company's bylaws.
5-Nov-23
Egypt PMI / October 2023 reading.
EFID: OGM / Approving proposed dividends for 31 Dec. 2022.
AMOC: Cash dividend / Deadline for eligibility for a dividend of EGP0.65/Share.
6-Nov-23
EFIH: Cash dividend / Deadline for eligibility for a dividend of EGP0.177/Share.
7-Nov-23
EFIH: Cash dividend / Ex-dividend date for EGP0.177/Share.
8-Nov-23
AMOC: Cash dividend / Payment date for a dividend of EGP0.45/share (1st installment).
9-Nov-23
EFIH: Cash dividend / Payment date for a dividend of EGP0.177/share
DOMT: OGM / Approving the proposed dividends.