Pre-Trading Thoughts

The Saudi sovereign wealth fund acquired stakes in four EGX-listed companies for USD 1.3 bn.El Mal newspaper reported that ADQ looks to increase its shareholding in MFPC by an additional 10-15%.Core inflation, which excludes volatile items such as food and fuel, climbed 15.6% on an annual basis in July, up from 14.6% in May. The cabinet will announce the full details of the measures it will implement to restrict public electricity consumption following its meeting today. Rationalizing 15% of gas consumption saves the state USD450 million dollars per month.Egypt recorded 65 M&A transactions worth USD 3.2 bn in the first six months of 2022.The Ministry of Supply aims to establish 10 grain silos in Upper Egypt with a total storage capacity of 600,000 tons, at a cost of up to EGP3 billion, with the objective to raise storage capacity of wheat to 5.2 million tons.ETEL 2Q22 net profit came in at EGP2.4 billion in 2Q22 (+38.2% YoY, +76.8% QoQ); Net profit came in at EGP3.78 billion in 1H22, - 2.3% YoY; Trading at 2022e P/E of 3.6x and EV/Adjusted EBITDA of 3.2x.PACH received a modification on Saybad’s offer to EGP16.50 to EGP18.75/share instead of EGP16.00-16.50/share. EGAL reported net profit after tax for the quarter recorded EGP738 million (+96% YoY, -16% QoQ). Earnings after tax surged to EGP2.4 billion in FY21/22 up from a mere EGP28 million recorded in FY20/21. EGAL is currently trading at FY21/22 P/E of 2.9x.EGAL clarified that the published cost of USD315 million is not accurate where booklet of conditions for the tender is currently being prepared and the exact cost and sources of finance will be announced once determined.MBSC released weak results for2Q22, where turned into losses of EGP3 million in 2Q22, down from a net profit of EGP48 million in 1Q22, on higher production costs that eaten up the surge in local selling prices. ECAP 2Q22 net profit witnessed a spike of 166.1% YoY while declining by 21.4% QoQ to reach EGP37 million in 2Q22. Net profit increased by 57.9% YoY in 1H22 to record EGP83 million. ECAP is currently trading at 2O22f P/E of 3.5x and EV/EBITDA of 2.5x.The Industrial Development Authority (IDA) rejected the grievance submitted by ATQA followed the IDA’s refusal for ATQA to acquire a billet license.ADIB 2Q22 consolidated net profit pre minority interest recorded a robust EGP578 million (+29% q/q, +65% y/y) reaching EGP1,017 million (+51% y/y) in 1H22. The stock is trading at P/E 22 of 1.7x and P/B 22 of 0.3x, on ROAE of 21%.EFG Hermes’ e-payments subsidiary PayTabs is partnering with Waffarha to allow users of the savings platform to make online payments through PayTabs.ORWE's BoD accepted an offer to sell its Chinese unit. The offer details will be disclosed once the deal is finalized.Some global cars manufacturers agreed to supply Egyptian assemblers with production components through a credit system for a period of 3-6 months. ACAMD reported 2Q22 net loss of EGP0.7 million, compared to 2Q21 net loss of EGP1.2 million and 1Q22 net loss of EGP1.8 million. e-Aswaaq, a subsidiary of EFIH, has rolled out its online ticketing platform to 29 tourist attractions in Egypt through an online portal.