Pre-Trading Thoughts

 A member of the IMF mission in Cairo said to local media that the mission did not discuss with the Egyptian government an extension of economic reforms schedule, during the fourth review. Adding that the mission did not decide anything regarding postponing some reforms.

Remittances from Egyptians working abroad increased 65.6% y-o-y in August to hit USD 2.6 bn.

Egypt reduced its imports of liquefied gas through the gasification complex at the port of Ain Sokhna, by about one third to 500 million cubic feet per day.

The country’s sole agent for China’s Jinbei, Jinbei Royal Egypt, has landed an agreement to assemble their models in Egypt starting early 2025, Chairman Khaled Saad said. 

Prime Minister Moustafa Madbouly chaired the second meeting of the Entrepreneurship Ministerial Committee, to discuss ways to boost the startup landscape in the country. 

The CBE has accepted bids worth USD1.6 bn in USD-denominated, one-year t-bills, with an average yield of 4.5%. 

The World Bank decided to disburse a new tranche to the Social Housing and Mortgage Finance Fund amounting to USD170 million, as part of a total financing amounting to USD1 bn, the Ministry of Housing reported. 

The American “Apache” Petroleum Company spent USD388 million on exploration in Egypt during the first 9 months of this year, expanding its operations after signing an agreement to stimulate production, but still less than the USD405 million spent during the same period last year.

We raised our ORHD FV from EGP26.26/share to EGP34.74/share mainly as a result of inputting the USD225/sqm land price at which ORHD had sold the 145k sqm land plot in El Gouna in 2Q24.We maintain our Overweight recommendation of ORHD based on our FV of EGP34.74/share and reiterate ORHD as one of our top picks. 

ORHD sold a 110k sqm land plot in El Gouna to Hassan Allam Properties for USD37.4 million, implying a land price of USD340/sqm. 

MASR achieved a net profit in 3Q24 increased 39.8% y/y and 285.4% q/q to EGP1.1 billion. We raised our MASR FV from EGP5.24/share to EGP8.11/share and maintain our Overweight recommendation for the stock. 

EFIH Net attributable profit recorded EGP631 million (+47% YoY, +110% QoQ), implying a NPM of 54.4% (+12.7pps YoY, +27.9pps QoQ) in 3Q24. During 9M24, net attributable profit stood at EGP1.39 billion (+21.5% YoY), implying a NPM 40.5%. EFIH is currently trading at 2025f P/E of 23.2x and EV/EBITDA of 17.6x.

ETEL and Vodafone Egypt have signed several landmark service agreements for infrastructure services. These agreements aim to develop Vodafone Egypt’s networks and support its preparations for the rollout of 5G services. The combined total value of these commercial agreements amounts to around EGP30 billion, to be disbursed over the duration of the agreements, which have varying maturities up to 2034.

Qatar Energy has inked an agreement with US oil and gas giant Chevron to acquire a 23% operational stake in the Mediterranean’s North El Dabaa Block, according to a company statement. 

Germany’s 2G Energy is in talks with five Egyptian companies to set up green hydrogen, biogas, and combined heat and power (CHP) projects locally.

TAQA posted 16.4% YoY growth in 9M24 consolidated net profit to record EGP424.87 million. Revenues increased 34.3% ti EGP13.13 billion.

CBE-owned United Bank has set an indicative price range of EGP 12.70-15.60 per share for its upcoming IPO on the EGX, potentially rasing between EGP 4.2-5.1 bn. This values the bank at up to EGP 17.2 bn. Which translates into implied multiples of P/B25 of 1.0x and P/E25 of 5.8x. 

Egypt’s Competition Authority approved a filing by Tanmiya Capital Ventures (TCV) to acquire a 20.9% stake in El Abd for Investment, Manufacturing, and Sweet Trading.