Pre-Trading Thoughts

Al Ahly Pharos

El Gouna Land Sale Unlocks Massive Value and Reconfirms ORHD as Our Sector Top Pick

ORHD sold a 145k sqm land plot at the backend of El Gouna for EGP1.5 billion, implying a price of USD225/sqm. This is highly positive from both a valuation perspective and an earnings perspective. If we apply the USD225/sqm price to both back and midway land in our valuation, our FV would accordingly increase from EGP26.26/share to EGP32.69/share.
Egypt welcomed a record 7.1 mn tourists in 1H 2024, ever so slightly inching above the previous record in the first half of last year.

Egypt received the first shipment of natural gas out of 21 shipments that were contracted to continue at intermittent intervals during the remaining months of the summer in order to avoid blackouts.

The government has reverted to planned two-hour power outages as of yesterday, instead of three hours. The two-hour planned outages will take place between 3pm to 7pm.

Minister of International Cooperation revealed investment guarantees provided by the EU worth EUR1.8 billion through the European Fund for Sustainable Development (EFSD), within the financing package worth EUR7.4 billion, which would enhance FDIs worth EUR11 billion in priority sectors.

German carmaker Volkswagen is interested in helping develop a shared production facility in the East Port Said Industrial Zone.

The Sovereign Fund of Egypt has drawn in some EGP52 bn in local investments and around USD5.1 bn in foreign investments over the past 4 years.

The General Authority for Freezones and Investment has issued 31 golden licenses to local and foreign investors in Egypt since December 2022.

Apex International Energy has allocated more than USD100 million to implement its operations in Egypt in 2024.

Act Financial is kicking off its IPO procedures today in an event held alongside IPO manager Zilla Capital. The company has set the final IPO price at EGP2.90/share, while an independent financial advisor to the transaction, set the fair value price at EGP3.63/share.

Valu, HRHO’s consumer finance arm, finalized it’s 10th securitization issuance worth EGP1.2 bn, under a securitization program of EGP9.0 bn

SAUD will provide Raya Holding subsidiary Raya Information Technology with a credit facility of up to EGP550 mn or its equivalent in FC.

CI Mortgage, CICH’s arm is negotiating with two banks to receive financing facilities worth EGP400 mn to use in acquiring new customers.

Qalaa Holdings’ TAQA is negotiating with clients in the tourism, industrial and agricultural sectors about proposed projects to produce 150 MW of solar energy in Egypt.

Egypt has started receiving import offers for liquified ethane gas for the first time in favor of petrochemicals companies.

The National Tunnels Authority (NTA) has kicked off procedures to take out a loan of up to EGP74 billion from a syndicate of ten local banks.

The Arab Organization for Industrialization and TMGH will work to localize elevator manufacturing under an agreement signed with Schindler.

Egyptian real estate developer Al Ahly Sabbour is in talks with advisors regarding plans to go public on the EGX.

Auto sales inched up 10.8% MoM in May to 6.3k vehicles.

Weekly Commodities Update
Last Price | WoW Change, %
Brent, USD/bbl | 85.7 | 1.4%
Diesel-HSFO Spread, USD/ton | 313.1 | 1.2%
Egypt Urea, USD/ton | 337.5 | 0.0%
Polyethylene, USD/ton | 1,050.0 | 1.0%
Polypropylene, USD/ton | 995.0 | -0.5%
Iron Ore 65%, USD/ton | 126.5 | 0.4%
Steel/Iron Ore Spreads, USD/ton | 387.8 | -1.0%
LME Aluminum Cash Price, USD/ton | 2,487.8 | 0.9%
Egyptian Retail Cement, EGP/ton | 2,075.0 | -1.3%
Steam Coal FOB Newcastle Australia, USD/ton | 133.5 | 1.1%
SMP, USD/MT | 2,766.0 | 0.0%