Pre-Trading Thoughts

Al Ahly Pharos

The Cabinet approved presidential decrees regarding three financing agreements with the EU, which will see Egypt unlock over EUR1 billion in funding.

The state aims to add 28 GW of renewable energy to the country’s energy mix over the next 5-7 years.

The government plans to announce “revolutionary” tax reforms next month, Prime Minister said, adding that the reforms aim to meet investor demands and encourage exports.

The Prime Minister ruled out fresh wage hikes with the anticipated social support package.

The Oil Minister will be meeting with foreign energy players starting this week to look into boosting local production starting early 2025.

Tourist arrivals during 7M2024 exceeded 8 million, revenues are expected to exceed USD14 billion by the end of this year.

Arab and foreign investors’ purchases of local debt instruments amounted to about EGP9.3 billion, equivalent to about USD192.3 million, during the past week through the secondary market.

The government paid USD1.3 billion as a new batch of dues to foreign oil companies operating in the country at the end of last June.

Cabinet approved the procedures to install UAE’s Masdar, Hassan Allam Utilities, and Infinity Power’s solar project, which will have a capacity of 1.2 GW of energy and 240 MW/hour of storage batteries.

Cabinet also approved the implementation procedures of solar and wind energy projects for UAE’s AMEA Power and its proposal to set up a battery storage project.

The Transport Ministry got the thumbs up from the Cabinet to proceed with contracting an unnamed company to finance, design, establish, manage, and maintain the planned dry port and logistics zone in Borg El Arab. The project will be carried out over a 30-year period.

Malaysian automaker Proton will start locally assembling its Saga model in early 2025 with the aim of producing some 25k units between the start of manufacturing and end of 2027.

Some 41.8 million Egyptians were banked in June 2024, representing 71.5% of eligible citizens.

PHDC (FV: EGP8.78, OW) achieved strong 2Q24 results. Net profit in 2Q24 reached EGP701.7 million, up 97.4% y/y and down 30.0% q/q, taking 1H24 net profit up 180.2% y/y to EGP1.7 billion. We raised our PHDC FV from EGP7.11/share to EGP8.78/share.

According to local media, GBCO, along with eight other automotive companies, increased their prices by EGP30k to EGP150k in August, driven by a shortage of stock resulting from challenges in importation.

The CBE is allowing banks to finance the import of 12 items that were among the list of goods that required the CBE's approval before funding since March 2022.

Arqaam Capital and CICH are the managers of the IPO of Bonyan Development, a subsidiary of Compass Capital, on the EGX.