Pre-Trading Thoughts

PMI is slightly down in October to 48.7 from 48.9 in September, due to stock shortages, output falling, and higher inflationThe government is setting up a new committee on import substitution and growing domestic manufacturingCLHO is in negotiations with Al-Marasem International for establishing a hospital in New Cairo, pending Ministry of Health approvals; CLHO is currently trading at 2022f P/E of 16.6x and 2022f EV/EBITDA of 9.9xRetail pharma sales recorded EGP62.0 billion during 9M21 (+6% YoY), higher than 2020 growth (+4% YoY growth) but is still below 2019 levels of c.17% YoY AXPH 1Q21/22 net profit came in at EGP33.2 million (-26.1% YoY, +277% QoQ); AXPH is currently trading at FY21/22f P/E of 7.3x and EV/EBITDA of 3.3xEFID 3Q21 net profit came in at EGP113 million for 3Q21 (up 4.4% YoY and 36.3% QoQ), driven by higher volumes as well as higher prices; EFID is currently trading at a 2022 P/E of 11.3x and EV/EBITDA of 7.2xOLFI 3Q21 net profit at EGP111.2 million, up 49.9% QoQ and 11.9% YoY; due to successful raw materials management and pricing policies despite of higher raw material prices; OLFI is currently trading at 2022 P/E of 6.7x and EV/EBITDA of 4.8xAUTO recorded sales of 4,340 passenger car units in September 2021 (up 24% YoY and 28% MoM); reflects a market share for AUTO of 26.1% (+5.6pps YoY and +7.5pps MoM)EMFD 3Q21 net profit up 181.8% y/y and 85.2% q/q to EGP1.5 billion; EMFD’s net cash currently constitutes 93.4% of its market cap. HELI stake sale as part of the state’s privatization program is planned for mid-2022; HELI plans to do a capital increase to meet its financing needs that are estimated to be over EGP1.0 billionMinistry of Tourism expects number of tourists visiting Egypt in 2021 of 8-9 millionHotel occupancy rates in Hurghada are at 80%-90% and in Sharm El Sheikh are at 75%-80%Luxor received its first direct flight in two years from LondonSteel & Iron exports surged by 193% YoY in 9M21 to record USD477 millionAluminum exports recorded USD567 million in 9M21, rising by 47% YoYBanque Du Caire hasn’t yet started any discussions related to the resumption of the bank’s listing procedures on the stock exchangeFRA intends to issue complementary and regulatory decisions for SPACsEgyptian Insurance Federation has requested the FRA would allow telecommunications companies to issue insurance policies; Might represent a healthy revenue stream for telecom companiesCANA is preparing to launch its “Mobile Banking” product next month as part of the bank’s digital transformation plan NBKE recorded a net profit of EGP1.2 billion in 9M2021, +21% YoYRACC is targeting a growth rate of 25% in its revenues in 2022; Aims to expand in the same current markets (Saudi Arabia, the UAE, Bahrain, and USA)CEFM proposed the distribution of FY20/21 DPS of EGP3.25, DY of 9.7%