Today’s Top News & Analysis
Time to Catch Up; Updating our fundamental outlook
Egypt obtains funding to accelerate decarbonization
More funding on the way
ADIB posts Q3 2022 preliminary results
Palm Hills Developments reports Q3 2022 results
Canal Shipping Agencies releases Q1 2022/23 results
Cairo Poultry announces Q3 2022 results
EMPC posts 9M 2022 indicators
AIH posts 9M 2022 results
Contact Financial closes EGP1.1bn securitized bond issuance
Elsewedy Industrial Development signs MoU with BASF
New Research
Time to Catch Up; Updating our fundamental outlook
It is often helpful to go back to the drawing board to see how old strategies have performed: what went right, what went wrong, and — more importantly — why? In this note, we would like to refer back to our STANDPoint note published on Sunday, 30 January 2022, titled Egypt Valuation Repertoire, where we laid out our strategy for 2022 in a 5 x 5 canvas. Then we update our outlook for the coming period along with our updated top stock picks.
Our top stock picks are: ETEL, TALM, ORWE, ECAP, EKHOA, MFPC, MICH, ABUK, FAIT, BINV, NHPS, and COMI.
For the full report, please click here.
MACRO
Egypt obtains funding to accelerate decarbonization
The U.S., Germany, and other European countries have pledged to provide more than USD550mn to help Egypt decarbonize its power infrastructure and install new renewable energy capacity, within the context of COP27. (Enterprise)
More funding on the way
Egypt expects to see more FDIs and more funding inflows from GCC countries, among other sources, after reaching a staff-level agreement with the IMF. (Enterprise)
CORPORATE
ADIB posts Q3 2022 preliminary results
Abu Dhabi Islamic Bank- Egypt [ADIB] reported its standalone Q3 2022 preliminary results, maintaining the good performance of the year. As per the disclosed figures so far, these are our main takeaways:
· For the quarter, net income showed a 4% q/q increase to EGP570mn (+58% y/y), although net interest income (NII) for the quarter increased 12% q/q to EGP1.3bn (+40% y/y).
· The strong NII performance was fueled by the 7% q/q growth in ADIB’s loan book to EGP55bn, derived from a 4% increase in deposits to EGP86bn.
· As for 9M 2022 figures, net income skyrocketed by 54% y/y to EGP1.5bn on the back of a 31% y/y leap in NII to EGP3.4bn. (Company disclosure)
Palm Hills Developments reports Q3 2022 results
Palm Hills Developments [PHDC] reported Q3 2022 consolidated net profits of EGP359mn (+127% y/y) on higher revenues of EGP2.6bn (+39% y/y). However, GPM and EBITDA margin came in at 33% (-2pp y/y) and 17% (-2pp y/y), respectively. (Company disclosure)
Canal Shipping Agencies releases Q1 2022/23 results
Canal Shipping Agencies’ [CSAG] Q1 2022/23 results showed a net income of EGP66.4mn (+72% y/y) on revenues of EGP16mn (-20% y/y). The increase in bottom line profits is attributable higher investment income. (Company disclosure)
Cairo Poultry announces Q3 2022 results
Cairo Poultry [POUL] reported Q3 2022 consolidated net losses of EGP18mn compared to a net profit of EGP43mn last year, despite the 33% y/y increase in revenues to EGP1.6bn. (Company disclosure)
EMPC posts 9M 2022 indicators
Egyptian Media Production City’s (EMPC) [MPRC] 9M 2022 KPIs showed a net income of EGP158mn (+66% y/y) on a higher top line of EGP465mn (+16% y/y), as well as a higher GPM of 55.5% vs. 46.7% a year earlier. (Company disclosure)
AIH posts 9M 2022 results
Arabia Investment's [AIH] 9M 2022 results showed a drop in net earnings by 22% y/y to EGP44mn. This was on the back of a decrease in operating revenues by 25%y/y to EGP900mn. Meanwhile, AIH's GPM and NPM came at 22.9% and 4.9%, respectively. (Company disclosure)
Contact Financial closes EGP1.1bn securitized bond issuance
Contact Financial Holding [CNFN] has closed an EGP1.1bn securitization bond issuance for its affiliates Contact Creditech and Contact Credit. The securitization issuance is a part of an EGP10bn securitization program. (Company disclosure)
Elsewedy Industrial Development signs MoU with BASF
Elsewedy Industrial Development, a subsidiary of Elsewedy Electric [SWDY], signed an MoU with the German chemical producer BASF to build a green logistics center in Al-Sokhna. (Al-Mal)
MARKETS PERFORMANCE
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