Pre-Trading Thoughts

The Asian Infrastructure Investment Bank is considering financing the Egyptian government with about USD300 million.The Ministry of Petroleum announced 8 new liquefied gas shipments during this November, to meet the needs of the local market for power generation and industrial activity. The Assistant Minister of Tourism revealed the issuance of financing approvals worth EGP17 billion, to establish a number of floating hotels within the Tourism Finance Initiative. Canadian gold miner Aton Resources will set up a gold extracting and processing facility to process finds from its Abu Marwat concession in the Eastern Desert, according to an Oil Ministry statement.The Ministry of International Cooperation requested an extension of World Bank's "Support to Education Reform in Egypt” program from the international lender until August 15, 2025, to compensate for the accumulated delays. State-owned Misr Petroleum inked a syndicated loan agreement with nine banks for EGP 10 bn, according to a statement (pdf) from the National Bank of Egypt that confirmed earlier unconfirmed reports.Officials of the Polish home furniture manufacturing company PADMA presented a plan to establish a furniture industrial complex in the city of New Alamein, with investments amounting to EUR70 million in the first phase.ETEL reported 3Q24 results. Net profit came in at EGP2.12 billion in 3Q24 (-13.6% YoY, -19.4% QoQ), bringing 9M24 net profit to EGP9.15 billion (-5.6% YoY). ETEL is currently trading at 2025f P/E of 5.0x.MTIE reported 3Q24 results. Net attributable profit came in at EGP289 million (+61% YoY, +17% QoQ). This brought 9M24 net attributable profit to EGP782 million (+65% YoY). MTIE is currently trading at 2025f P/E of 6.9x.PHDC signed an agreement with Saudi Arabia's Dallah Real Estate to establish a joint venture to develop multi-use projects in Saudi Arabia. HELI reported 3Q24 net profit of EGP347.3 million, compared to 3Q23 net loss of EGP16.5 million and 2Q24 net profit of EGP650.1 million, bringing 9M24 net profit up 216.1x y/y to EGP1.7 billion.EAST released 1Q24/25 financial indicators, reporting net income of EGP1,825 million (+62.4% YoY, -54.5% QoQ), implying NPM of 22.5% (-13.8pps YoY, -37.1pps QoQ). EAST is currently trading at FY24/25f P/E 5.5x.PHAR issued Positive 3Q24 results. Net profit after taxes amounted to EGP205 million, up 17% QoQ and 52% YoY. 9M24 bottom line registered EGP985 million, higher by 53% YoY. PHAR is currently trading at FY25 multiples of P/E of 6.5x.CICH 3Q24 net attributable profit recorded EGP344 million (+3% q/q, +50% y/y, and 14% higher than Al Ahly Pharos estimates of EGP301 million) bringing 9M24 bottom line to EGP1,617 (+117% y/y). CICH is currently trading at P/B25 of 0.7x and P/E25 of 3.1x.ATLC 3Q24 net income recorded EGP34 million (-60% y/y, -4% q/q), bringing 9M24 net income to EGP108 million (-25% y/y). ATLC is currently trading at P/E25 of 4.0x and P/B25 of 0.9x.LCSW reported strong 3Q24 consolidated results. Net attributable income came in at EGP227.8 million (+190% YoY, +52% QoQ), on steady revenue growth and operational margins. 9M net attributable income surged 155% YoY to EGP855.7 million. LCSW is currently trading at FY25e PE of 3.1x.EGAL reported solid KPIs for 1Q24/25. Net profit after tax came in at EGP4.2 billion in 1Q24/25 (+160% YoY, +3% QoQ), beating our estimate of EGP2.3 billion for the quarter.  EGAL is currently trading at FY24/25e P/E of 4.4x.MFPC released 3Q24 financial results posting a net profit of EGP1.35 billion increasing by 8% YoY (-47% QoQ). This brought 9M24 net profit to EGP11.56 billion, a 121% YoY growth. MFPC is currently trading at a 2025e PE of 6.2x.