KEY THEMES
Today’s news continue with key earnings reports from large cap names with EFG Hermes Holding [HRHO] just reporting this morning. Earnings are up 67% in H1 2021 on higher revenues. The stock, which we rate as Overweight with a 12M PT of EGP14.8, is trading at a 20% discount to its book value despite improving its performance (ROAE now stands at 12%). The company is yet to benefit off its 51% acquisition of Arab Investment Bank (aiBank). Also, HRHO is an indirect beneficiary of the recent rise in Zahraa El-Maadi Investment [ZMID], with an attributable value of EGP1.1bn or EGP1.2/HRHO share.
Elsewhere, Cairo for Investment & Real Estate Development [CIRA] continues to grow its foothold in the Egyptian education sector, partnering with Elsewedy Capital Holding (the family office of Elsewedy family but has nothing to do with Elsewedy Electric [SWDY]) to tap the Delta region. For this, one should pay less attention to its seemingly rich multiples and focus more on growth.
POSITIVE
HRHO, CIRA: HRHO reporting strong results in Q2 2021; CIRA continues on its growth path.