Pre-Trading Thoughts

CBE repaid foreign debt obligations in 9M FY21/22 of USD20 billion. Egypt's external debt continued to grow to USD157.8 billion as of March 2022, +17% YoY, and 34.6% of GDP.  GCC deposits with the Central Bank of Egypt amounted to about USD14.9 billion as of March 2022, with 8 deposits due to KSA, UAE and Kuwait.Foreign holdings of Egyptian treasury bills rose for the first time in five months in June 4% to USD15.71 bn from USD15.1 bn in May.  Saudi Wealth Fund is interested in acquiring a stake in B-Tech.QIA is interested in acquiring a 10-15% stake in MFPC.Toyota is studying the implementation of a project to produce low-carbon blue ammonia at the Mopco and Abu Qir fertilizer plants.  HELI reported stellar 2Q22 (April - June 2022) results, with net profit jumping 290.4% y/y to EGP639.9 million, bringing 1H22 net profit up 142.9% y/y to EGP643.0 million. This strong performance is the result of the 243 feddan (1.0 million sqm) land plot sale in New Heliopolis in April 2022 EMFD reported net profit in 2Q22 reached EGP1.5 billion, up 87.1% y/y bringing 1H22 net profit to EGP3.1 billion, up 131.6% y/y. EFIH reported 2Q22 net profit came in at EGP288 million in 2Q22 (+118% YoY, 1H2022, net profit surged to EGP487 million, an increase of 76.6% YoY. EFIH is currently trading at 2022f P/E of 35.5x and 25.3x.  EFIH plans to provide the investment arms of the Saudi Arabia’s Sovereign Wealth Fund with digital services. EFIH signed a MoU to replicate the digitized government financial network in Libya and secured an agreement with the Tunisian Agricultural Bank in Tunisia to replicate Agricultural sector digitization of Egypt. EFIH is studying investing in two fintech companies, operating in Digital Banking.FWRY reported 2Q22 attributable net profit of EGP24.1 million. Attributable net profit came in at EGP52.3 million (-53.8% YoY) in 1H2022. FWRY is currently trading at 2022f P/E of 97.1x and EV/EBITDA of 17.6x. ORWE 2Q22 attributable net profit recorded EGP211 mn compared to EGP299 mn recorded in 2Q21 and EGP236 mn recorded in 1Q22 (-29.4% YoY, -10.7% QoQ). This drop is attributed to the trickling down of lower gross profit, lower export rebates, and increasing interest expenses. ORWE is currently trading at FY22 P/E and an EV/EBITDA of 4.4x.EFID 2Q22 bottom line recorded EGP196 mn for the quarter (+136.1% YoY. +20.7% QoQ). EFID is currently trading at a FY22 P/E of 11.5x and an EV/EBITDA of 5.9x.JUFO 2Q22 Attributable net profit for the quarter came in at EGP174 mn, -9.6% YoY, 1H22 bottom line recorded EGP319 mn, stable YoY. JUFO is currently trading at a FY22 P/E of 15.5x and an EV/EBITDA of 5.8x.DOMT 2Q22 bottom line where it recorded EGP61 mn for 2Q22, compared to EGP51 mn in 1Q22 and a net loss of EGP29 mn in 2Q21. DOMT is currently trading at a FY22 P/E of 8.9x and an EV/EBITDA of 6.5x.RMDA  2Q22 attributable net profit came in at EGP52.4 million in 2Q22 (+65.8% YoY, -27.0% QoQ), 1H2022 net attributable profit came in at EGP124.2 million, a spike of 101% YoY; RMDA is currently trading at 2022f P/E of 11.7x and EV/EBITDA of 8.1x. For more details, kindly check our note published yesterday.B Investments net income after tax and minority interest reached EGP 60mn compared to EGP 73mn during the same period last year. BINV is currently trading at P/E22 of 2.6x and P/B22 of0.8x.Contact Financial Holding’s net income dipped 4% y-o-y to EGP 104.4 mn in 2Q 2022 and 1H22 net income is up 18% to EGP 258 mn. CNFN is currently trading at P/E22 of 6.1x, and P/B22 of 1.2x.HDBK 2Q22 standalone bottom line recorded a healthy figure of EGP564 million (-12% q/q, +48% y/y), bringing 1H22 bottom line to EGP 1,204 million (+20% y/y). HDBK is currently trading at 2022 P/E of 3.0x, and P/B of 0.5x.Egypt is to finalize contracts with Germa