Pre-Trading Thoughts

Al Ahly Pharos

The Prime Minister approved a new EGP120 billion program of subsidized loans for manufacturers in freezones as well as agriculture and renewable energy companies.

The European Union is looking to deliver the first tranche, EUR1 billion, of the bloc’s pledged EUR5 billion of concessional loans as part of its EUR7.4 billion package to Egypt before next summer.

Merchandise circulation in the ports returned to normal levels after periods of accumulation and decreased to USD1.8 billion.

The EU-Egypt Investment Conference is now penciled in for June, EU Ambassador to Cairo said. The conference, originally scheduled for May, is expected to bring together some 450 European companies.

President El Sisi called for the swift completion of the required legislative steps to facilitate the participation of the private sector in the country’s healthcare sector, the President said during a meeting.

Russian company Infinity intends to invest USD1 billion in Egypt in the mining sector, after announcing a global auction for gold carried out by Shalatin Mineral Resources Company.

The British Pharos Energy received USD10 million of its arrears from EGPC, in addition to USD5.7 million during 2023, which is equivalent to 26.7% of its dues by the end of 2023, amounting to USD37.4 million.

JUFO released 4Q23 financial indicators. Attributable net profit recorded EGP141 million in 4Q23 (-56.1% YoY, -13.7% QoQ). This brings FY23 attributable net profit to EGP1.0 billion (+60.0% YoY). JUFO is currently trading at 2024f P/E of 9.8x and EV/EBITDA of 5.2x.

JUFO’s BoD proposed cash dividends distribution of EGP0.20/share, implying payout ratio of 18.4% and a dividend yield of 1.2%.

Negotiations between SKPC and Ethydco for a merger are resumed after receiving the approval of ADQ for a share swap. The merger is expected to be finalized in 3Q24.

ADES targets to complete drilling six oil wells in Ras Ghareb during 2H24.

COMI (FV: EGP100, OW) is to distribute cash dividends of EGP0.55/share, implying a DY of 0.7% and a payout ratio of 5.6% of 2023 net profit. Record date is 21 April 2024 while distribution date is 24 April 2024.

AIH reported positive FY23 results where net consolidated attributable income stood at EGP90.16 million (+28% y/y). AIH is currently trading at P/E24 of 8.4x and P/B24 of 0.8x.

According to local media, Drive Finance, a subsidiary of GB Capital, owned by GBCO, is considering issuing a financing sukuk program worth EGP2 billion before the end of this year.

GBCO plans to start operating its car assembly plant in Sadat City by the beginning of 2025.

MCQE's (FV: EGP22.36, EW) general assembly approved the proposed cash dividend distribution of EGP0.5/share for FY23 to be distributed in two equal installments. This implies a DY of 3% and payout ratio of 51%.

Weekly Commodities Update

| | Last Price | WoW Change, %
| Brent, USD/bbl | 87.5 | 2.4%
| Diesel-HSFO Spread, USD/ton | 362 | -2.2%
| Egypt Urea, USD/ton | 333 | -6.3%
| Polyethylene, USD/ton | 1,040 | 0.0%
| Polypropylene, USD/ton | 970 | 0.5%
| Steel/Iron Ore Spreads, USD/ton | 408 | 3.0%
| LME Aluminum Cash Price, USD/ton | 2,295 | 1.4%
| Egyptian Retail Cement, EGP/ton | 2,106 | 0.0%
| Steam Coal FOB Newcastle Australia, USD/ton | 129 | 1.1%
| SMP, USD/MT | 2,517 | 0.0%
| Last price may vary week over week in some indices due to time difference