Pre-Trading Thoughts

Al Ahly Pharos

Egypt's Purchasing Managers’ Index (PMI) recorded 50.1 in February declining from a 50-month high of 50.7 in January.

The first phase of the Sovereign Fund of Egypt’s (SFE) plan to take over all public enterprises will target some 370 profitable firms, over half of the total 709 companies owned by the state

Cairo and Baghdad discuss transferring Iraqi oil to be refined in Egyptian refineries.

The Ministry of Petroleum and Mineral Resources has launched 13 new areas for exploration and search for oil and gas, including seven offshore gas fields in the Mediterranean Sea and six exploration areas in the Gulf of Suez and the Western Desert.

Egypt is pushing ahead with plans to expand the role of renewables in its energy mix, targeting 42% by 2030. The country aims to add 4 GW of new renewable capacity this summer to help avoid power outages.

The Egyptian government held talks with the European Union to discuss the second phase of the mechanism of “Macroeconomic Support and Budget Support” with funding of EUR4 billion.

The Egyptian government has signed a soft financing agreement with the European Commission worth EUR90 million in the field of food security. The project is set to be financed by other partners, with a grant worth EUR100 million from the European Union and soft financing from the World Bank worth EUR110 million.

The European Bank for Reconstruction and Development (EBRD) and the Central Bank of Egypt (CBE) have launched the National SME Champions Programme in partnership with local financial institutions, including the Export Development Bank of Egypt (EXPA), to accelerate the growth of high-potential SMEs.

An unnamed Turkish leather company has requested the Industry Ministry allocate an 80k sqm land plot to establish a EGP 2 bn (c. USD 39.5 mn) leather factory in Robbiki Leather City.

Chinese company Gold Star will set up a USD4.5 mn facility in the Qantara West Industrial Zone to produce ready-made garments following an agreement it inked with the Suez Canal Economic Zone.

Scope International Engineering Company, affiliated with the Saudi Al-Suwailem Group, has contracted with Al-Nasr Housing and Development Company, affiliated with the Holding Company for Construction and Development, to develop the Maqtam Corniche project with total sales estimated at about EGP200 billion and total investments of EGP130 billion.

The National Railway Authority targets USD10 million in revenues from sleeping car sector by end of 2025, a 25% growth.

FAIT 4Q24 consolidated net profit recorded an impressive EGP3,344 million (+62% q/q , +414% y/y), bringing FY24 net profit to EGP12,441 million (+181% y/y) . BoD proposed cash dividend distribution of EGP3.05/share, implying a payout ratio of 15%, and DY of 8%. Also, BoD proposed the distribution of 1:20 bonus share. The stock is currently trading at P/B25 of 0.6x and P/E25 of 3.5x, with ROAE of 16%.

Banque Misr issues a “Yomaty” savings certificate, which is a three-year savings certificate with a variable annual return rate of 27% paid daily and priced according to the corridor deposit rate - 0.25.

JUFO subsidiary Tiba for Trade and Distribution signed a EGP400 million financing agreement with CIB to support its expansion and operational efficiency.