Pre-Trading Thoughts

Al Ahly Pharos

PHDC achieved strong 1Q22 sales of EGP5.5 billion, up 62.4% y/y. Net profit in 1Q22 grew 44.1% y/y to EGP295.0 million. We remind you that PHDC is targeting FY22 sales of over EGP20.0 billion. PHDC is also planning a EGP1.5-2.0 billion securitization in 4Q22.

EFIC released positive 1Q22 consolidated bottom line at EGP236 million (+495% YoY). Higher margins was the reason. EFIC is currently trading at a 2022 P/E of 2.8x and EV/EBITDA of 2.5x.

ECAP released solid 1Q22 net profit of EGP47 million in 1Q22 (+19.6% YoY). Revenues recorded EGP454 million in 1Q22 (40.1% YoY, +16.5% QoQ), driven by local sales. Margin pressure was due to cost rise. ECAP is currently trading at 2O22f P/E of 3.3x and EV/EBITDA of 2.7x.

CICH 1Q22 net attributable profit recorded EGP 154 million, 15 % higher than the adjusted net profit of 1Q21 of EGP 133 million (excluding non-recurring expenses). CICH is currently trading at P/B22 of 0.9x, P/E22 of 4.8x.

CANA 1Q22 net profit pre-appropriations recorded EGP96 million (-17% y/y, -58% q/q). CANA is currently trading at P/B22 of 0.4x and P/E22 of 4.4x.

FAIT 1Q22 net attributable profit recorded EGP1,290 million (+123% y/y, +8% q/q). FAIT is currently trading at P/B22 of 0.4x and P/E22 of 2.4x, with ROAE of 18%

CNFN aims to bring its investment portfolio to more than EGP15 billion, compared to EGP11 billion currently, and finalized the launch of its subsidiary Contact E-Payments.

AIH released 1Q22 financial results where consolidated net attributable income stood at EGP36 million implying a 142% q/q growth. AIH is currently trading at P/E22 of 4.1x and P/B22 of 0.6x.

OFH’s net profit increased in 1Q22 to EGP27.43 million (+41.5% since inception), mainly supported by the growth in revenues from EGP76.26 million to EGP104.92 million (+45.2%).

RAYA is close to offloading its 62.3% stake in freight subsidiary Ostool to Paradigm Logistics for EGP 266.6 mn (EGP0.124 per RAYA share).

UNIT reported a 11.0% y/y decrease in 1Q22 net profit to EGP26.5 million.

RTVC reported 1Q22 net loss of EGP60.4 million, compared to 1Q21 net loss of EGP463.3 million.

Nasser Social Bank is now offering a new three-year certificate of deposit at 15% rate.

A shipment of Ukrainian wheat will soon make its way to Egypt from Romania.

The Cabinet declared a ban on third-party wheat trading until the end of August.

The Manpower Ministry is still sorting out the details of how to enforce a 1% tax on corporates with more than 10 employees.

The Egypt-Greece electricity connection project is getting a renewed push as Europe seeks to slash reliance on Russian energy.

Natural gas and liquefied natural gas (LNG) export revenues rose by 98% YoY to USD3.892 billion from January-April 2022.

The Industrial Development Authority is working on drafting unified legislation for the industrial sector within two months.

The French Development Agency intends to lend the National Bank of Egypt, Banque Misr, and Banque du Caire, a total value of EUR140 million, to finance projects in support of sustainable development.

The Japan International Cooperation Agency (JICA) plans to support the implementation of the universal health insurance project, with a total of USD400 million, during the next year.

Domestic liquidity M2 increased by EGP135.7 billion at the end of April, to record about EGP6.416 trillion.