Pre-Trading Thoughts

Caustic Soda Prices is in a non-stop rally, reaching USD849/ton, higher w/w by 12.9% (MICH)The Egypt urea index was up 4% w/w and prices are currently at USD900/tonMinister of Finance said that the government started a plan to automate the budget of economic authorities, which amounts to about EGP2.4 trillion (e-finance)Minister of Finance noted that the e-receipt implementation will start in April 2022 (e-finance)Customs Authority working to resolve issues importers are facing with the Advance Cargo Information System (e-finance)AMOC 1Q21/22 net profit at EGP230 million, compared to the losses of EGP32 million recorded in 1Q20/21; GPM came in at 11.4%; AMOC is currently trading at FY21/22 P/E of 7.2x and FY21/22 EV/EBITDA of 5.4xHigher gas prices drove the government to use Mazot in electricity generation (AMOC)MFPC to engage in trading all fertilizers and their derivatives, establish a Melamine projectCIRA FY20/21 net profit at EGP309 million, up 21.1% YoY, lower than our estimate of EGP369 million; CIRA is currently trading at FY21/22 P/E of 17.3x and EV/EBITDA of 10.6x; CIRA is planning to inaugurate Badr University in Assyout in February 2022EFID 3Q21 Earnings Call: 2022 topline is targeted to be around EGP6 billion; GPM in 2022 is expected to hover around 33.3-33.5%; Recovery is expected to be coming from higher prices but with stable volumes; EFID is currently trading at a 2022e P/E multiple of 11.4x and EV/EBITDA multiple of 7.3xCar dealers who can’t comply with new rules on price regulations will be hit with fines up to EGP2 millionETRS 3Q21 net profit recorded EGP4.4 million, +67% YoY and -30.4% QoQ; ETRS is currently trading an annualized FY2021 P/E of 29.0xCSAG 1Q21/22 net profit reached EGP38.5 million (-6.2% YoY and -15.4% QoQ); Decline in net profit to lower investment income from Damietta and Portsaid Container Handling Companies; CSAG is currently trading at an annualized FY21/22 P/E of 18.1xThree Arab investors are eyeing acquisitions of Egyptian pharma players via SPAC mergers; No further details were released