Pre-Trading Thoughts

EKHO| Buy Ambition, Diversity, and Strategy. EKHO expects to register total profits of USD170m in 2021 and targets growth rates of 20-25% based on future expansion plans; Sprea will double its production capacities; Nat Gas will benefit from Haya Karima Initiative; Kahraba will add 40 MW to its capacity; Alex Fert’s net profit shall be within USD40-50 mn; ONS profits c.USD30 mn; Delta & Mohandes Insurance targeting  20% YoY growth; EKHO has high growth plans for the consumer finance arm over the next five years; DPS is USD0.07 out of 2021 profits, DY of 5.5% on USD; EKHO is trading at2022 P/E of 8.2x; OW on FV of USD1.97/EGP31.00 FAB might raise its NBO price to acquire a 51% stake in HRHO from EGP19/share, given the company’s strong financial and competitive positionHELI expects to finalize the sale of the 270 feddan land plot in New Heliopolis in February 2022 and intends to launch its own 100 feddan project in New Heliopolis in the second half of 2022ORHD received approval from a bank consortium for a USD200.0 million loan to restructure existing debt and finance working capitalETEL and Greek operator Grid Telecom have signed an agreement to lay a new subsea data cable between the two countries; ETEL is currently trading at 2022f P/E of 4.3x and EV/EBITDA of 2.4xMCRO is eyeing completing a cosmeceuticals acquisition transaction this year. No further details availableFRA intervened to supervise the pricing of financial products directed to small, medium, and micro enterprise, through administrative expenses, late payment fees, judicial expenses, and will not interfere in setting a maximum limit for pricing financial products.[Correction] The amendments to the property sale tax, if passed, apply the EGP1,500-4,000 lumpsum tax instead of the 2.5% tax only to properties sold before 19 May 2013.The annual core inflation rate recorded 6.3% in January 2022, compared to 6% in December 2021. On a monthly basis, core inflation recorded 0.8% in January, up from 0.2% in December.Cabinet approved a decision to increase the monthly minimum wage for state employees across all salary bands by EGP300, bringing the public sector overall minimum wage to EGP2700.Two US companies plan to pump USD5 billion investments in Egypt in 3 projects in the fields of green hydrogen production, sea water desalination, and the establishment of hospitals with international standards.The Ministry of Petroleum and Mineral Resources, aims to inject investments worth USD900 million in research and production of gas in the next fiscal year, bringing the total investments during the current and next two years in the gas sector to more than USD1.6 billion.