Pre-Trading Thoughts

Vodafone Group has received an initial offer from Vodacom for the transfer of Vodafone Group’s stake in Vodafone Egypt to Vodacom for USD2.7 bn; ETEL gets dividend policy for Vodafone Egypt of 60% of FCF starting 2022 in addition to EGP 10bn of dividends to shareholders in 2021; ETEL has a net debt balance of EGP18.98 billion as of June 2021 and is currently trading at 2022f P/E of 3.4x and 2022f EV/EBITDA of 2.5xThe Industrial Development Authority announced the prices for the six steel production licenses The six consortiums competing for EGP3.5 bn Tenth of Ramadan Dry Port include Orascom Construction-Abu Dhabi Ports, and Elsewedy Electric-CMA CGM,A consortium of France’s Bolloré Transport & Logistics, Elsewedy Electric and the Egyptian Group for Multi-Purpose Stations signed an MoU to build, manage and operate a multi-purpose terminal at the Ain Sokhna PortSKPC reported 3Q21 net profit came in at EGP75 million; Weak due to maintenance shutdown; SKPC is trading at 2022f P/E of 6.4x; FV is at EGP10.30 post rights issue and latest developmentsCICH 3Q21 net profit at EGP241mn (+28% q/q, +122% y/y), bringing 9M21 bottom line to EGP 413 million (+41% y/y); The stock is currently trading at 6.1x P/E22 and 0.9x P/B22 on ROE of 16%CNFN’s 9M 2021 net income at EGP343 million (+60% y/y); CNFN is currently trading at annualized P/E21 of 11.4x, P/E22 of 7.1x and annualized P/B21 of 1.9x, P/B22of 1.7x  on ROE of 29%Trade Minister issued a decision to stop importing the basic components needed for the local assembly of tuk-tuks; Tuk-tuks constitute around 10% of AUTO revenuesMNHD disappointing 9M21 results, with sales down 39.6% y/y to EGP2.7 billion from EGP4.5 billion in 9M20 that had been supported by the EGP1.1 billion land sale; Net profit in 3Q21 decreased 85.6% y/y and 81.2% q/q to EGP21.4 millionRussian charter flights to Hurghada and Sharm El Sheikh resumed yesterdayAnnual urban inflation went down to 6.3% in October from 6.6% in September, mainly because of the base-effect