Pre-Trading Thoughts

COMI (FV: EGP 69.00, OW) 1Q23 net profit post minority recorded a robust EGP6.1 billion (+43% y/y) on the back of strong margins, robust non-interest income, lower provisions, and lower effective tax rate. Stock is trading at P/E 2023 of 8.3x and P/B 2023 of 1.8x, on an attributable basis, post minority and appropriations of EGP18.8 billion (growth of 30% YoY).We update our FV on ADIB to 35.00 with 49% upside to the market price. ADIB 1Q23 consolidated net profit post minority interest recorded EGP1,009 million (+126% y/y) on the back of strong net-funded Income, robust gains from FX deals, high net fees and commissions, and lower effective tax rate. Add lower provisions sequentially. The bank is currently trading at 0.9x P/B23 and 4.2x P/E23 on net profit post minority and appropriations of EGP 2.8 billion (44% y/y growth in 2023). Our FV is EGP 35.00/share on 500 million shares, post the registration of the concluded final round of capital increase, which implies a P/B23 of 1.4x and P/E23 of 6.3x.CIEB (FV: EGP17.00, OW) 1Q23 bottom line recorded a strong EGP 1,224 million, pre minority interest and appropriations (+149% y/y). Annual and sequential growth were supported by robust net-interest Income and lower effective tax rate, along with potentially lower booked provisions. The bank is currently trading at 1.0x P/B23 and 4.9x P/E23 on net profit post minority and appropriations of EGP 2.8 billion (growth of 17% y/y in 2023).BINV is to distribute a DPS of USD0.1297/share implying a dividend yield of 15% and a payout ratio of 77%. The dividend is distributed in USD due to Giza Systems transaction proceeds.HDBK appointed Mr. Basel El Hini as non-executive chairman and reappointed chairman and managing director Hassan Ghanem.CEO of SAUD said that the bank borrowed USD30 million from the Islamic Development Bank to finance green and sustainable projects. ORHD (FV: EGP15.32, OW) achieved solid 1Q23 sales of EGP2.8 billion, up 35.9% y/y. Hotel revenue in 1Q23 grew 120.0% y/y to EGP573.2 million. Real estate revenue increased 44.3% y/y to EGP2.0 billion. Net profit in 1Q23 reached EGP291.5 million, down 30.6% y/y due to FX loss of EGP477.7 million, and finance cost of EGP210.1 million.RMDA (FV: EGP3.80, OW) reported net profit came in at EGP68.7 million in 1Q23 (-4.3% YoY) with a GPM of 45.6% (-4.9pps YoY) due to cost inflationary pressures and currency devaluation.  RMDA is currently trading at 2023f P/E of 8.3x and EV/EBITDA of 5.1x. CCAP posted EGP2,284 million in consolidated net loss during FY22, compared to EGP2,276 million in net loss during FY21. Excluding FX losses, CCAP recorded a consolidated net profit of EGP2,457 million during FY22. Consolidated revenues increased by 113% YoY to EGP97,909 million during FY22. CCAP is currently trading at 2023f EV/EBITDA of 2.9x.CCAP’s ERC dues at the EGPC reached USD618.2 million by the end of 2022.Egypt s Alexandria National Refining and Petrochemicals Company (ANRPC) signed a joint development agreement with Norway’s Scatec to establish the country’s first green methanol production project in Damietta Port with investments worth around USD450 million. Weekly Commodities Update |   Last Price         WoW Change, %Steel/Iron Ore Spreads, USD/ton           423.6    0.0%Aluminum, USD/ton      2,221.5 -4.1%Egyptian Retail Cement, EGP/ton          1,880.0 0.0%Steam Coal, USD/ton    164.9    -2.8%Brent, USD/bbl 74.2     -1.5%Diesel-HSFO Spread, USD/ton  268.4    -2.9%Egypt Urea, USD/ton     366.5    0.0%Polyethylene, USD/ton  1,100.0 0.0%Polypropylene, USD/ton 1,007.5 -0.5%