Pre-Trading Thoughts

Kyiv, the capital, is still holding out against Russian troops. Ukraine has agreed to talks with Russia on the border with BelarusThe total budget deficit in Egypt widened during the first 7M FY21/22 to 4.7% of GDP, compared to 4.4% for 7M FY20/21, due to higher debt service and subsidy spendingThere are 14 alternative markets for sourcing wheat imports to Egypt including the United States, France, Romania, Kazakhstan, and GermanyEKHO attributable net profit came in at USD171 million in 2021 higher 47% YoY; Net income amounted to USD53 million in 4Q21, down 18% QoQ but up 48% YoY; Stock is trading at of P/E of 9.1x and EV/EBITDA of 4.7xFinance Ministry is planning to roll out B2B e-invoicing in Cairo by June and fully digitize the tax system in Egypt by December; EFIH is working with the government the on e-invoice implementationAMIC: Passenger car sales in January came in at nearly 16.9k cars up 13% YoY from the previously recorded 14.9k cars in January 2020; AUTO targets55k passenger car sales in 2022AUTO's BoD decided to cancel 8.5 mn treasury shares and distribute DPS of EGP0.35 (DY 6.1%)AUTO updates om the two-wheelers factory; increase in capacity to 360k units from the previous 240k units; For the tires factory, capacity increase for the factory is currently under study to reach 6 mn tire annually for PC cars and 1 mn tire annually for commercial vehiclesAUTO's owned GB Capital hired a financial advisor to study the strategic options to maximize value within their investments in some subsidiaries (MNT-Halan)CLHO BoD approved the purchase of treasury shares (a maximum of 10% of total shares) at market price RMDA to discuss distributing dividends from 2021 profitsEXPA consolidated 4Q21 bottom line recorded EGP185 million (-17% y/y), bringing FY21 bottom line to EGP626 million (-31% y/y); Significant increase in provisioning and effective tax rate; Bank has two rounds of capital increase; EXPA is trading at P/E22 of 4.1x, and P/B22 of 0.4x, on ROAE of 9%CNFN topped consumer finance companies in 2021, with a market share of 45.5% (EGP4.4 billion). Valu came in second place at EGP2.3 billion (market share of 23.8%). Premium International came in third (EGP1.35 billion, 14% share)The Senate gave its preliminary approval for the New Unified Insurance Act MBSC earnings surged to EGP49 million in 4Q21 vs. a net loss backed by the significant increase in cement prices, despite sales volumes decrease by 22% YoY; MBSC is currently trading at a P/E of 15.9x and EV/ton of EGP750 (USD47.8)ELEC  4Q21 attributable earnings surging to EGP77 million (+166% YoY, +99% QoQ). 2021 earnings came in at EGP225 million, 68% higher; The surge is driven by prices, since volumes were broadly stable; ELEC is currently trading at a P/E of 4.9x and EV/EBITDA of 7.1xATQA released financial results for 4Q21 recording earnings of EGP35 million reversing losses; 2021 bottom line came in at EGP100 million in FY2021 vs. a net loss of EGP5 million in FY2020; Surge in average rebars selling prices despite a 9% YoY drop in rebars sales volumes; ATQA is currently trading at a P/E of 12.1x and EV/EBITDA of 7.6xARCO Steel has applied for a license to produce feed pellet with a production capacity of 1.1 million tons, at a value of EGP345 millionOrascom Construction, Metito Holdings, Schneider Electric, and 8 other contractors expressed interest in the planned USD2.8 billion water desalination plantsThe Tunnels Authority decided to accept the technical offer submitted by Orascom Construction in the international tender for civil works of the first phase of the fourth metro lineALCN denied news articles that DP World is interested in acquiring 90% of its sharesETRS announced intentions to purchase around 3.12 million treasury shares during the period between February 27 and August 25, 2022