Pre-Trading Thoughts

Al Ahly Pharos

Government calls out media reports that it asked the IMF to increase its next disbursement as false.

The government has approved offering manufacturers loans at a subsidized 15% interest rate to purchase equipment and production materials.

Egypt's non-oil trade deficit declined by 4.4% YoY during the 9M24, attributed to an 11.1% growth in exports, despite an increase of 3% in imports.

Cabinet approves official launch of comprehensive health insurance system in Suez next December, after successful trial operation in the governorate.

ARCC (FV: EGP17.80, OW) reported solid 3Q24 attributable net income recording EGP318.2 million (+95% YoY, +64% QoQ), beating AHP estimate of EGP236.7 million. This brings 9M24 bottom line to EGP664.7 million (+33% YoY). Bottom-line growth was shaped mainly by strong revenue growth and healthy operating margins. ARCC is trading at FY25 P/E of 6.0x.

MBSC’s (FV: EGP53.30, OW) board of directors approved purchasing 6.1 million treasury shares, representing 10% of the company’s total number of shares, at a price of EGP47.00/share to be internally financed.

Saudi Arabia’s Zamil Steel Construction, a subsidiary of Zamil Industrial, is planning to set up a new heavy metal structures factory in Egypt, The new facility, to be set up in Sadat City, will have three production lines that will produce 36k tons of metal structures a year when running at capacity. The final investment cost is to be decided early next year. The factory will initially meet local demand for metal structures and at a later export over half of its output.

SAUD (FV: EGP25.00, OW) 3Q24 standalone bottom line recorded a strong figure of EGP889 million (+14% q/q, +51% y/y, and +17% higher than Al Ahly Pharos estimates of EGP761 million), bringing 9M24 bottom line to EGP2,225 million (+38% y/y). SAUD is currently trading at P/E25 of 3.2x and P/B25 of 0.7x.

EGBE (FV: USD0.54, OW) 3Q24 standalone bottom line recorded EGP696 million (0% q/q, +79% y/y, and +22% higher than Al Ahly Pharos Estimates of EGP571 million). Bringing 9M bottom line to EGP1,930 million (+84% y/y). EGBE is currently trading at P/E25 of 2.2x.

Four foreign oil companies have secured four concessions in an international bid round the Oil Ministry had launched in 2023. The four companies will invest at least USD71 million, with a commitment to drill at least 14 wells. They will explore for oil and gas in four blocks located in the Western Desert, Eastern Deserts, and the Gulf of Suez under exploration licenses with the Egyptian General Petroleum Corporation of up to seven years. The firms will be granted 20-year extendable development leases if they make a discovery.

ALCN’s dividends (DPS of EGP1.72 and USD0.0034) record date is on 25th of November 2024 and distribution date is on 28th of November 2024.

Dutch dredging company Van Oord has completed dredging two new port basins in Ain Sokhna Port as part of an expansion project aimed at enhancing the Suez Canal Economic Zone.

An EGP3 billion factory to assemble Malaysian automaker Proton’s Saga model was officially opened yesterday.

The Financial Regulatory Authority (FRA) has approved two guiding documents for ins. policies covering electric vehicles (EVs) for personal and commercial use.

Three medical supplies manufacturers have received land plots in the Baghdadi Industrial Zone in Luxor to set up new facilities with total investments exceeding EGP200 million.

Pharma-delivery platform Chefaa has inked an agreement with USAID Business Egypt to digitize the country’s pharma supply chain to help boost healthcare access.