Pre-Trading Thoughts

Egypt’s PMI inched up to 48.1 in February compared to 47.9 in January, reflecting a slowdown in the rate of input price inflation, a slight contraction in backlogs, a strong decline in activity, and lower confidenceEgypt has seen an estimated USD3 billion leave its treasury markets since the Russian invasion of Ukraine (Reuters)US markets rebound as Fed head Powell says rate hikes will proceed with cautionGlobal commodity markets surged to multiyear high; Brent at USD118/bbl Suez Canal is expected to achieve an additional revenue of USD700 million from the recent increase in transit fees during the current year, with annual receipts of USD7 bnEFID released FYQ21 net profit at EGP473 mn (+56.5% YoY); Revenues recorded EGP5,254.3 mn, + 30.7% YoY on higher volumes and prices; EFID plans indirect rises shall continue throughout the year to face the rise in raw material prices; EFID is currently trading at FY21 P/E of 11.4x and EV/EBITDA of 7.2xESRS has raised the price of rebars by EGP 500/ton to EGP 15,500/ton (including VAT with the escalation of the Russian-Ukrainian conflictEGAL confirmed that the Consulting Engineering Group (CEGMAN) hasn’t finalized yet the feasibility study for the car rims production line project till dateAl-Tariq Automotive Trading Company acquired 23% of International Financial Leasing Company – Incolease; Transaction implies a P/E of 10.0x and a P/B of 1.2x; Transaction multiples are higher than ATLC multiples of P/E21 of 3.9x and slightly lower than ATLC P/B21 of 1.5x; Transaction multiples are higher than CICH P/E21 of 6.1x and P/B21 of 1.1xMOPCO standalone results for 2021 show net profit of EGP1.545 billion, + 37% YoY; On a consolidated basis, we are estimating for 2021 a net profit of EGP4.806 billion;  Stock is trading at a 2022 P/E multiple of 6.06x, and EV/EBITDA of 2.74xAMER reported weak 4Q21 results, with net loss recording EGP87.1 million, bringing FY21 net profit to EGP8.4 million, compared to FY20 net loss of EGP8.1 million; Annual improvement came on the back of higher real estate, hotel, and restaurant revenueDSCW released raising their stake in the subsidiary “Textile Rent Plus” to reach 100% from 76% at a EGP2.0 mn dealMinistry of Telecommunication noted that 5G implementation studies are expected to be completed within two months