Pre-Trading Thoughts

Al Ahly Pharos

Foreign investors' transactions returned to record net purchases of bills and bonds during yesterday's trading, Tuesday, for the first time after a selling wave that lasted 8 sessions. Their net purchases of treasuries yesterday amounted to about USD160 million.

The Finance Ministry raised some EGP50.3 bn worth of three-month T-bills this week at an average yield of 28.3%, a five-month high.

Egypt yesterday launched its voluntary carbon trading market — the first in the country and in Africa.

The Finance Ministry is developing a comprehensive set of tax incentives to streamline services, enhance relations between investors and the Tax Authority, and modernize the tax system through new technologies.

The Oil Ministry has formed an advisory committee to manage oil reserves and boost production, the ministry said in a statement.

Egypt's total renewable energy production capacity increased by 7.9% YoY during FY 2023/24 reaching about 6.8 gigawatts.

The ministry of finance is planning to issue Sukuk in local currency and green T-bills, with a value up to EGP5-10 bn by the end of 2024, early 2025.

The government has a comprehensive plan to position Egypt as a regional industrial hub by the end of the year.

The industry ministry will soon launch the Egypt Digital Industrial Platform, which will streamline the investment process.

State grain buyer GASC is in discussions over directly purchasing up to 1.8 mn tons of wheat from international suppliers.

Turkish clothing firm Eroglu Holding has broken ground on its USD40 mn denim factory in the Qantara West Industrial Zone.

TMGH achieved strong 2Q24 results, with 2Q24 sales rising 233.7% y/y and 81.6% q/q to EGP69.0 billion, taking 1H24 sales up 225.4% y/y to EGP107.0 billion.

ETEL reported 2Q24 net profit of EGP2.63 billion (-8.8% YoY, -32.3% QoQ), bringing 1H24 net profit to EGP6.5 billion (-2.7% YoY). ETEL is trading at 2024f P/E of 4.2x.

FWRY reported 2Q24 net profit of EGP321 million (+101% YoY, +4.8% QoQ), bringing 1H24 net profit to EGP629 million (+122% YoY). FWRY is currently trading at 2024f P/E of 22.1x.

MTIE reported 2Q24 net attributable profit of EGP246 million (+74% YoY, -1% QoQ), bringing 1H24 net attributable profit to EGP494 million (+67% YoY). MTIE is currently trading at 2024f P/E of 7.8x.

EFID reported 2Q24 net profit of EGP318 million (-17.5% YoY, -26.5% QoQ), bringing 1H24 net profit to EGP751 million (-1.5% YoY). EFID is currently trading at a FY24e P/E of 9.1x.

RMDA reported 2Q24 net profit of EGP63.5 million (+5.5% QoQ, +36.0% YoY), bringing 1H24 net profit to EGP123.6 million (+3.9% YoY). RMDA is currently trading at FY24e P/E of 9.0x.

HDBK reported 2Q24 standalone bottom-line of EGP2,732 million (+13% q/q, +62% y/y), bringing 1H24 bottom-line to EGP5,158 million (+71% y/y). HDBK is currently trading at P/E24 of 2.9x.

SAUD (EGP:25.00, OW) released 2Q24 positive net profit of EGP781 million (+36% y/y, +41% q/q), bringing 1H24 net profit to EGP1.3 billion (+31% y/y). SAUD is currently trading at P/E24 of 3.3x.

CNFN (FV:EGP6.00, OW) released 2Q24 consolidated bottom-line of EGP142 million (-17% y/y, +213% q/q). CNFN is trading at P/E24 of 7.3x.

BINV is to distribute USD0.02/share cash dividend for 2023 (EGP0.987/share at an exchange rate of EGP49.35/USD). This implies a DY of 4.4%.

ARCC reported 2Q24 attributable net income of EGP193.9 million (more-than-double q/q, +27% y/y).
EGCH announced the signature of the nitric acid and ammonium nitrate Project Management Contract (PMC) with Bilfinger Tebodin to manage the project it also reached a preliminary agreement with six banks over two loans worth USD100 million and EGP7 billion.

TAQA released 1H24 unaudited consolidated net profit of EGP211.3 million (+26% YoY).