Pre-Trading Thoughts

Al Ahly Pharos

May 2024 saw a continued decline in the annual urban inflation, falling to 28.1% from April’s 32.5%. Core inflation, which excludes highly volatile and administered prices, declined for the third consecutive month in May reaching 27.1%, compared to 31.8% in April.

The European Bank for Reconstruction and Development (EBRD) will announce a new electricity production project to be carried out in partnership with the private sector. The bank has plans as well to take part in financing a “major” green hydrogen project in Egypt next year. The bank is interested in acquiring minority stakes in a few local banks.

The Oil Ministry plans to import the first shipment of liquefied gas at the port of Ain Sokhna during the last week of June.

The Sovereign Fund of Egypt (SFE) has acquired a 20% stake in the local pharma chain Care Pharmacies for EGP75 mn.

The government is set to launch an online platform for medical tourism within the next two weeks. The platform will allow users to reserve spots in any hospital in Egypt and apply for and receive a visa for the medical treatment within 72 hours.

An official at the Shalatin Mineral Resources Company said that 3 foreign companies won the company's global bid for gold exploration. The official said that the winning companies were one Russian, one English, and the last is Saudi. The names of the winning companies are scheduled to be officially announced in the coming days.

We upgrade our FV for JUFO to EGP30.80/share, maintaining Overweight recommendation to factor in:

• New Macro assumptions

• Capex of EGP2.0 billion in 2024.

• Exports expansion mainly to the MENA region.

• Higher ASP and volumes recovery.

• Margin improvement relative to historical averages.

JUFO is currently trading at 2024f P/E of 8.2x.

BINV’s general assembly approved the distribution of a cash dividend of EGP 1.00/share or its equivalent in USD (DY of 4.9%), with a total amount of EGP218.36 million, in addition to EGP9 million to be distributed to the BoD.

Aman Consumer Finance, RAYA's financial services arm, has issued EGP1.04 bn worth of securitized bonds.

Local payment cards manufacturer Masria Digital Payments (MDP) is adding three production lines to its factory in Tenth of Ramadan City this year, with investments of USD 2 mn.

Alameda Healthcare will invest some USD245 mn to expand its footprint in Egypt and across the region, through setting up new hospitals, acquiring existing ones or expanding its own hospitals.