Pre-Trading Thoughts

 Hassan Allam Holding inked a memorandum of understanding with Abu Dhabi wealth fund ADQ portfolio company and Ras El Hekma project master developer Modon Holding, in an agreement to cooperate on projects in the “infrastructure, energy, and water and wastewater treatment, and special building” sectors, the companies said in a joint statement. The CBE payment platform Instapay will start accepting Egypt-bound remittances from Gulf nations before within two months, the bank’s deputy assistant governor for payment systems and services said. For the time being, transfers will be received in EGP, but opening this up to AED and SAR is being studied. The Oil Ministry is in talks with suppliers to postpone LNG shipments from 4Q 2024 to 1Q 2025, a government source said. The shipments are part of the 20 cargoes of LNG that the government bought for USD 907 mn to cover domestic needs between October and December.The Readymade Garments Export Council is negotiating with foreign companies from China, Turkey, and Vietnam to establish factories in Egypt, some of which are based on the localization of imported industries. We raise our FV of SWDY to EGP75.00/share, up from the previous EGP45.69/share, yet we maintain our Equalweight recommendation given the recent price rally in the stock price. SWDY is trading at FY25e P/E of 10.2x and EV/EBITDA of 5.0x. DOMT reported 3Q24 results, showing a net profit of EGP166.9 million (+63.5% YoY, 90.2% QoQ), with NPM of 6.6% (+1.5pps, +2.3pps QoQ). DOMT is currently trading at 2025f P/E of 13.3x and EV/EBITDA of 7.7xNTRA has given its preliminary approval to MNOs to increase prices of telecom services (phone calls and internet services) in Egypt.Following HELI's Board approval in August to start procedures to acquire a 770 feddan land plot in Capital Gardens, HELI disclosed that the land plot area is 766 feddans worth EGP12.6 billion, 10% of which has been paid and the rest of which will be paid over six years.Al Ahly Sabbour is looking to list around 20-25% of its shares on the EGX.The indicative price range for the United Bank IPO, set between EGP 12.70 and EGP 15.60 per share, suggests significant upside potential within the sector, valuing the bank between EGP 13.97 billion and EGP 17.16 billion. This pricing translates to a projected 2025 P/B of 0.8x to 1.0x and a P/E of 4.7x to 5.8x. In contrast, the sector averages for 2025 stand at 0.8x P/B and 2.9x P/E, highlighting a notable discrepancy. HRHO announced that its private equity arm has launched a USD 300 million Saudi Education Fund (“SEF”) with the target of building an institutional world-class K-12 operator in the Kingdom of Saudi Arabia. BTFH is continuing to reap the benefits of its growth strategy during 9M24, with consolidated operating revenues increasing at 404% y/y to record EGP4.8 billion, while net profit exceeded EGP1.13 billion, up from 86 million pounds during the same period of the previous year. CNFN launches a new project in Zayed City with investments amounting to EGP1.5 billion.State-owned El Nasr Automotive and the privately held Al Safy Group have set up a joint venture, dubbed SN Automotive, to assemble global car brands locally to sell in Egypt and export to other North African nations. Egypt’s car imports witnessed a significant decline of more than 28% in August 2024, amounting to USD156.09 million, compared to approximately USD217.09 million during the same month last year.