Pre-Trading Thoughts

Al Ahly Pharos

e-finance 3Q21 net profit came in at EGP99 million in 3Q21 (-20.5% YoY, -25.1% QoQ), 9M21 net profit at EGP375 million in 9M21 (+35.2% YoY)

e-finance Management 3Q21 webinar key highlights: 1) net profit after tax of around EGP525-540 million, this brings 4Q21e net profit to EGP150-165 million; Revenues of around EGP2.0 billion, this brings 4Q21e revenues to EGP700 million; 2) Management guided for a GPM of 45-47% in 2022; 3) No IPO expenses will be booked on the income statement during 4Q21, this is going to be a balance sheet treatment.

Vodafone Egypt expects to receive the CBE’s approval on acquisition of a stake of 20% in each of Bee and Masary during 4Q21

Vodafone submitted ownership restructuring documents to NTRA to transfer it 55% stake in VFE to Vodacom

EKHO reported positive 3Q21 bottom-line stood at USD63.8 million (+13%QoQ, +68%YoY), 9M21 bottom line reached USD173.0 (+46%YoY); EKHO is trading at 2021e P/E of 8.5x 2022f P/E of 7.4x

EFIC 3Q21 net profit reached EGP93 million for the quarter (+127% YoY); EFIC is currently trading at 2022f P/E of 7.2x and an EV/EBITDA of 4.5x

Import tariffs on rebar steel, billets, and Aluminum products will be removed; Steel prices might go down by 10%; ESRS FV should now hover around EGP13.40 from the EGP14.85 post the hike in gas prices; Aluminum prices might go down by 10-15%; EGAL FV now goes down to EGP20.00 from EGP23.85

MCQE reported strong 3Q21 attributable net profit at EGP46 million (+32% YoY, +42% QoQ); MCQE is currently trading at an Annualized FY21 P/E of 6.8x and FY22 P/E of 4.5x

ARCC released neutral 3Q21 bottom line at the breakeven point recording EGP0.1 million; ARCC is currently trading at FY22 P/E of 9.7x

LCSW released neutral 3Q2021 net losses at EGP9 million; LCSW is currently trading at a 2022 P/E of 22.6x and an EV/EBITDA of 5.2x

TMGH reported 3Q21 sales of EGP6.5 billion; 9M21 sales to EGP27.5 billion, up 127.2% y/y, Net profit in 3Q21 reached EGP829.4 million, down 3.9% y/y

ORHD 3Q21 sales up 50.3% y/y to EGP2.2 billion, bringing 9M21 sales to EGP6.2 billion, up 43.4% y/y; Net profit in 3Q21 rose 167.0% y/y to EGP434.7 million

PORT reported solid 3Q21 sales of EGP521.0 million, up 20.3% y/y; 9M21 sales to EGP1.2 billion, up 19.1% y/y; 9M21 net profit before minority of EGP91.0 million, compared to losses previously

AMER reported solid 3Q21 net profit of EGP11.1 million, compared to losses previously

ISPH reported 3Q21 net profit at EGP137 million in 3Q21 (+22.9% YoY, +152.3% QoQ); Net profit came in at EGP242 million in 9M21 (+20.6% YoY); net profit of EGP330-340 million is targeted in 2021; ISPH is trading at 2022f P/E of 7.3x and EV/EBITDA of 3.9x

ORWE reported 3Q21 net profit at EGP260 million (-13.2% QoQ and -14.0% YoY); Bottom-line for 9M21 amounted to EGP859 million, up 62% YoY; ORWE is currently trading at 2022e P/E multiple of 4.8x and EV/EBITDA multiple of 4.5x

AUTO reported 3Q21 attributable net profit at EGP332 million (down 11.2% QoQ and 11.4% YoY); Financing business bottom-line amounted to EGP146 million, up 1.9% QoQ and 4.4% YoY; AUTO is trading at a 2022e P/E 0f 2.9x and EV/EBITDA of 5.0x

EFID plans to expand to two new markets in the next five years, with one expansion slated for next year

The CBE has issued new amendments to the regulation of Egyptian banks' BoD formation

EXPA consolidated 3Q21 bottom line recorded EGP155 million (-3% q/q, -17% y/y), bringing 9M21 bottom line to EGP441 million (-36% y/y); Stock trades at 5.1x P/E22 and 0.4x P/B22

CANA 3Q21 net profit recorded EGP136 million (+9% q/q, +4% y/y); 9M21 net profit is at EGP377 mn (+6% y/y); Stock is trading at P/B22 of 0.49x and P/E22 of 4.51x

AIH released weak 3Q21 financial results, with consolidated net income at EGP14 million (-46% q/q,-33% y/y); AIH is currently trading at annualized P/E21 of 6.5x