Pre-Trading Thoughts

Al Ahly Pharos

The Oil Ministry received 10 out of 21 contracted liquified natural gas (LNG) shipments as of last week, a government official said. The official also told the news outlet that the Ministry is set to receive another 3-4 LNG shipments within the coming two weeks.

Saudi Arabia Drilling & Exploration Company could soon ink an agreement with an undisclosed Egyptian private sector player holding two gold exploration concessions in the Eastern Desert.

The New and Renewable Energy Authority (NREA) has allocated land plots spanning 31k km for investors looking to set up renewable energy projects.

The Central Bank of Egypt (CBE) has instructed local banks to allow non-residing foreigners to open accounts.

Turkey’s Jade Textile has contracted an unnamed Gulf-based consultant to establish a solar power station for its factory in Tenth of Ramadan, with investments of around USD1.5 million.

Giza Spinning & Weaving reportedly plans to list 25-40% of its shares on the EGX before the end of the year.

President El Sisi issued a directive forbidding the closure of any industrial facility without the greenlight from Transport and Industry Minister.

ORHD (FV: EGP26.26, OW)’s net profit in 2Q24 rose 217.8% y/y to EGP1.9 billion, compared to 1Q24 net loss of EGP1.2 billion that had been caused by an FX loss due to the EGP devaluation in March 2024. This brought 1H24 net profit to EGP667.9 million, down 23.5% y/y. We maintain our Overweight recommendation of ORHD based on our FV of EGP26.26/share in light of solid sales performance and sturdy recurring income generated by hotel and commercial operations.

ADIB recorded an outstanding 2Q24 consolidated bottom line post minority of EGP2,458 million (+16% q/q, +112% y/y), bringing 1H24 bottom line post minority to EGP4,574 million (+111% y/y). The bank is currently trading at 1.1x P/B24 and 3.5x P/E24.

Housing and Development Properties (HDP), the real estate development arm of HDBK, yesterday launched Club Hills Residence, a EGP10 billion residential development in Sixth of October City.

JUFO (FV: EGP30.80, OW) released outstanding 2Q24 financial results.Net profit jumped 362% YoY and 109.4% QoQ to reach EGP1,002 million. This brings 1H24 bottom line to EGP1,480 million (+166% YoY). JUFO is currently trading at 2024f P/E of 10.5x and EV/EBITDA of 5.3x.

EKHO targets investing USD67 million in its North Sinai concession to keep natural gas daily production rates at 55 million cubic feet until the end of 2026.

SWDY (FV: EGP44.88, EW) denied, in a release sent to EGX, any plans to delist the company’s shares.

RACC reported 1H24 results. Net profit came in at EGP245 million (+199.9% YoY), driven by revenues growth and margin expansion.

TALM intends to inaugurate next month Beni Suef University Hospital, with investments of EGP800 million.

FRA granted Social Impact Capital (SIC) a 60-day extension on its mandatory tender offer (MTO) for up to 100% of CIRA.

Weekly Commodities Update

| | Last Price | WoW Change, %
| Brent, USD/bbl | 79.7 | 3.70%
| Diesel-HSFO Spread, USD/ton | 276 | -1.70%
| Egypt Urea, USD/ton | 365 | 0.00%
| Polyethylene, USD/ton | 1,050 | -0.90%
| Polypropylene, USD/ton | 975 | -1.00%
| Iron Ore 65%, USD/ton | 122 | -4.00%
| Steel/Iron Ore Spreads, USD/ton | 389 | 0.00%
| LME Copper Cash Price, USD/ton | 8,747 | -2.10%
| LME Aluminum Cash Price, USD/ton | 2,250 | 2.20%
| Egyptia Retail Cement, EGP/ton | 2,307 | 5.60%
| Steam Coal FOB Newcastle Australia, USD/ton | 146 | 1.30%
| SMP, USD/MT | 2,539 | -1.10%
| Last price may vary week over week in some indices due to time difference