Today’s Top News & Analysis
Egypt’s renewable energy makes significant gains
State-owned petrochemical industries and refineries to receive greater support
The 3% CBE mortgage initiative is put on hold
FAIT's 2022 preliminary results
Safwan Thabet, founder of Juhayna, and his son released
BINV eyes investments in the healthcare and food sectors in 2023
GB Auto finalized the agreement to sell a stake in GB Lease
Valu targets EGP4.5bn of securitization in 2023
Qalaa Holding replaces their ESOP
A shareholder sells a stake in Dice
A shareholder lowers his stake in Misr Cement Qena
Damietta Container Handling Co. handled 1.22mn containers during 2022
HCCD to reportedly offer second phase of Helio Park to GCC investors
Egypt’s profit share from Sukari Gold Mine reduced by 39% y/y in 2022
MACRO
Egypt’s renewable energy makes significant gains
The New & Renewable Energy Authority (NREA) released its Q2 2022 figures for the renewable energy sector. Hydroelectricity recorded a 19% y/y rise to 3,237 GWh. Wind power reached 1,311 GWh in Q2 (+16% y/y). Solar energy production created 952 GWh (+4% y/y). Overall, the renewable energy sector replaced the equivalent of 1.022mn tons of oil in Q2. (Al-Mal)
State-owned petrochemical industries and refineries to receive greater support
The Minister of Petroleum & Mineral Resources pledged to improve state-owned refineries and petrochemical plants. Improvements will come in the shape of equipment enhancements, energy efficiency, and increased budgetary allocations. The aim is to fully secure the supply of petroleum-derived products in the Egyptian market. (Al-Borsa)
The 3% CBE mortgage initiative is put on hold
Egyptian Mortgage Refinance Co. (EMRC), a subsidiary of the Central Bank of Egypt (CBE), reportedly notified mortgage finance companies to put the 3% CBE mortgage initiative on hold, subject to be resumed later once there is visibility. (Shorouk News)
CORPORATE
FAIT's 2022 preliminary results
Faisal Islamic Bank of Egypt’s [FAIT] 2022 preliminary results showed a significant leap in net income by 67% y/y to EGP4.5bn. This comes despite the fact that net interest income (NII) decreased 19% y/y to EGP4.4bn on the back of higher cost of funds. However, extraordinary gains from FX revaluation and other investment income saved the bank's earnings. We also note a drop in FAIT's effective tax rate to 27% against 38% in 2021 which further supported the bank's bottom line. These exceptional results take FAIT's ROE high up to 20.4% from 15.7% a year earlier. The bank is currently traded at a P/E of 3.6x and a P/BV of 0.7x. (Company disclosure)
Safwan Thabet, founder of Juhayna, and his son released
Safwan Thabet, founder of Juhayna Food Industries [JUFO], and his son Seif El-Din Thabet, who were both arrested for terrorism offences, were reportedly released. (Nabd)
BINV eyes investments in the healthcare and food sectors in 2023
B Investments Holdings' [BINV] chairman announced that the company plans to invest EGP2bn in acquisitions in the healthcare and food & beverage sectors in 2023. He also added that these acquisitions will be financed from the proceeds of exiting Total Energies Egypt and Giza Systems. (Asharq Business)
GB Auto finalized the agreement to sell a stake in GB Lease
GB Auto [AUTO] has finalized the agreement to sell its indirect stake of 45% in GB Lease to UAE-based Chimera Investments for EGP855mn. Currently, AUTO has a 55% indirect ownership in GB Lease following the transaction. (Company disclosure)
Valu targets EGP4.5bn of securitization in 2023
CEO of Valu, the consumer finance arm of EFG Hermes Holding [HRHO], said the company targets issuing securitization bonds of EGP4.5bn in 2023, EGP1.1bn of which will be during Q1 2023. (Shorouk News)
Qalaa Holding replaces their ESOP
Qalaa Holding’s [CCAP] BoD abandoned the draft employee stock ownership plan (ESOP) previously presented to the EGM on 10 December 2018. CCAP will instead adopt a new system for rewarding and compensating employees. Details are yet to be disclosed, and the new ESOP is awaiting FRA approval. (Company disclosure)
A shareholder sells a stake in Dice
The Egyptian Saudi Insurance House sold 13mn shares of its stake in Dice Sport & Casual Wear [DSCW] for a total of EGP7.1mn or the equivalent of EGP0.5472/share, decreasing its stake from 5.093% to 4.365%. (Company disclosure)
A shareholder lowers his stake in Misr Cement Qena
Fahad bin Hamad Alhargan lowered his stake in Misr Cement Qena [MCQE] from 10.608% to 9.695% by selling 657,541 shares with an average price of EGP23.6/share for a total of EGP15.5mn. (Company disclosure)
Damietta Container Handling Co. handled 1.22mn containers during 2022
Damietta Container Handling Co. [DCCC] handled 1.22mn containers during 2022 compared to 1.08mn during the previous year (+14% y/y). The handled containers can be broken down into 522,000 (+14% y/y) from imports, 583,000 from exports (+11% y/y) and 123,000 from transit (+29% y/y). (Al-Mal)
HCCD to reportedly offer second phase of Helio Park to GCC investors
The Holding Company for Construction & Development, a Ministry of Public Enterprise company, will reportedly offer the second phase of Helio Park New Cairo project owned by its subsidiary Heliopolis for Housing & Development [HELI] to GCC investors. (Shorouk News)
Egypt’s profit share from Sukari Gold Mine reduced by 39% y/y in 2022
Centamin PLC [LSE: CEY] released its 2022 annual report, where revenues from Sukari Gold Mine grew 7.5% y/y to USD788.4mn and production volume rose 6% y/y to 440,974 ounces. Egypt’s share of the profits amounted to USD35.5mn (-39% y/y) vs. the USD75.2mn earned last year despite the rise in revenues. Egypt's royalty payments reached USD23.8mn in 2022 (+9.6% y/y) in spite of the reduced profit share. Centamin expects gold production from Sukari Gold Mine to range between 450,000-480,000 ounces during 2023. (Economy Plus, Al-Mal)
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