Pre-Trading Thoughts

Unemployment rate inched up to 7.1% in 3Q23.The European Union is said to be mulling a package of investment in Egypt that could clock in at nearly USD10 billion in sectors including digital, energy, agriculture and transport.Afreximbank is looking to extend USD11 billion in credit facilities to a number of Egyptian companies.   The EGP weakened to a record low against the greenback in the parallel market yesterday, at more than 50.0 per USD. On the other hand, NDF contracts have fallen to a record low . The three-month EGP contract is down 14% over the period to 37.7 and the 12-month NDF has slid 11% since late September to 47.0, Bloomberg reports. The CBE has doubled the limit on daily and monthly prepaid cards, financial inclusion accounts, and mobile wallets.  The Chinese company LONGi, has presented a proposal to establish a green hydrogen production plant in Egypt. We upgraded our FV for ABUK to EGP81.21/share, with an Equalweight recommendation. ABUK is currently trading at FY23/24 P/E of 7.0x and EV/EBITDA of 9.0x. PHDC (FV: EGP5.59, OW) reported 3Q23 results. Net profit in 3Q23 increased 25.2% y/y and 24.2% q/q to EGP441.3 million, bringing 9M23 net profit up 15.2% y/y to EGP1.0 billion. We raised our FV from EGP4.35/share to EGP5.59/share.EMFD (FV: EGP5.66, OW) reported 3Q23 results. Net profit in 3Q23 reached EGP1.5 billion, down 17.6% y/y and up 18.7% q/q, bringing 9M23 net profit up 1.8% y/y to EGP5.0 billion. We raised our FV from EGP5.01/share to EGP5.66/share.ARAB reported 3Q23 results. Net profit in 3Q23 reached EGP35.7 million, up 769.5% y/y and down 4.8% q/q, taking 9M23 net profit to EGP88.7 million, up 345.7% y/y. EFIH (FV: EGP23.50, OW) reported 3Q23 results. Net attributable profit surged to EGP429 million (+111.6% YoY, -1.7% QoQ). 9M23 net attributable profit came in at EGP1.1 billion (+66.5% YoY). BoD approved buying 1% treasury shares over a month and approved a 1% ESOP in 2023. EFIH is currently trading at 2024 P/E of 20.3x and EV/EBITDA of 13.8x. ORWE released 3Q23 results. Net profit for the quarter reached EGP596 mn compared to EGP79 mn in 3Q22 and EGP290 mn in 2Q23. ORWE is currently trading at a FY24 P/E of 5.6x and an EV/EBITDA of 4.9x Toma Company for Commercial and Industrial Investments have bought back 545 mn shares of DSCW at EGP0.80/share. The family now owns 58.6% of the company. CIB’s London-listed depository receipts are now trading at a 46% discount to the bank’s shares on the EGX, the widest the gap has been since 1997.HRHO (FV: EGP18.31, OW) 3Q23 net profit after tax and minority interest recorded EGP395 million (-2% q/q, +24% y/y), bringing 9M23 net attributable profit to EGP1,685 million (+68% y/y). HRHO is currently trading at P/E24 of 11.0x and P/B24 of 1.0x. HDBK released 3Q23 bottom line of EGP1,404 million (-17% q/q, +156% y/y) bringing 9M23 bottom line to EGP4,419 million (+152% y/y). HDBK is currently trading at 2024 P/E of 3.3x and P/B of 1.0x. BINV released 9M23 financial results where the bottom-line recorded EGP446.4 million (-55% y/y). BINV is currently trading at P/E24 of 3.3x. OIH reported standalone 3Q23 results where it recorded a net income of EGP14 mn (-92% y/y), leading to a 9M23 net income of EGP15 mn (-93% YoY). OIH is currently trading at P/E24 of 11.5x. AIH reported 3Q23 results where net attributable income stood at EGP5.3 mn (-47% y/y). 9M23 bottom-line recorded EGP27 mn (-39% y/y). AIH is currently trading at P/E24 of 6.3x and P/B24 of 0.6x. OFH reported 3Q23 results, where net profit for the quarter of EGP7.7 mn (-33% y/y), bringing the 9M23 bottom-line to EGP123 mn, compared to