Pre-Trading Thoughts

Egypt urea index was up 9% w/w to USD900/ton (ABUK, MFPC, EKHO)Caustic Soda Prices climbed to four years high, recording USD752/ton (MICH)Steel/Iron Ore spreads are at the USD445 mark, rising by 1% WoWEGAL released 1Q21-22 bottom line recorded EGP305 million up from EGP151 million of losses in 1Q20-21 but down by 39% QoQ; Lower than our expectations; EGAL is currently trading at annualized P/E of 8.6x; EGAL raised prices by EGP2,300/tonne (c.+4%)We update our valuation for SPMD with a FV of EGP2.27/Share; SPMD is currently trading at 2021e P/E of 13.7x; SPMD is trading at 2022f P/E of 4.6x while trading at 2022f EV/EBITDA of 3.1xSAUD 3Q21 net profit at EGP501 million (+42% q/q, -13% y/y), bringing 9M21 bottom line to EGP1.12 billion (+0.3% y/y); SAUD is currently trading at P/B22 of 0.4x and P/E22 of 2.7x, with ROAE of 17.9%EFID’s first production line in Morocco will be up and running within days; Line will produce 2.7k tons of HoHos cakes each yearSUGR  net profit of EGP411.6 million in 9M 2021, compared to a net loss of EGP62.25 million in 9M20; SUGR is currently trading at annualized 21/22 P/E of 4.4xPassenger car sales dipped c.2% YoY to 16.6k passenger vehicles during the month, down from 17k last year and 18.3k units in August; Passenger car sales for 9M21 totaled 153.8k units, up 43% YoYSome local car factories cut production in half due to the lack of production componentsLawmakers approved amendments to the Traffic Law, which would reduce the license minimum age, to drive e-bikes, to sixteen years oldRMDA  to discuss the sale of a 5% stake to a private equity investor after the lock-up period on the stake expired; RMDA is currently trading at 2022f P/E of 9.6x and 2022f EV/EBITDA of 6.3x ADCI  1Q21/22 net profit at EGP25.7 million (-19.0% YoY, +23.5% QoQ); ADCI is currently trading at FY21/22f P/E of 3.8x and EV/EBITDA of 1.8x ZMID is co-developing its 34 feddan New Heliopolis land plot with Leopard Construction; ZMID reported 9M21 net profit of EGP211.0 million, up 64.2% y/ye-finance BoD decided increasing the company’s capital through issuing 177.78 million shares at IPO offering price of EGP13.98/share, at a total value of EGP2.48 billionGSSC reported a net profit of EGP9.965 million in 1Q21/22 (+28.8% YoY); GSSC is currently trading at annualized FY21/22 P/E of 19.4xFRA has approved the establishment of companies created with the sole purpose of raising capital through an IPO to acquire or merge with another company (SPACs)Egypt plans to increase exports of natural gas, in an attempt to reduce the negative impact of high oil prices on the fiscal budget, according to the Minister of Petroleum.GASC purchased 180k tons of Russian wheat at an average price of USD 332.30 a tonne versus a USD 255 average price used in the FY2021/22 fiscal estimated budget by MoF.