Pre-Trading Thoughts

Egypt has held talks with the EU over shipping more natural gas to Europe amid conflict in UkraineErnst & Young: Mergers and acquisitions in Egypt recorded USD7.7 billion in 2021GASC bought 180,000 tons of Romanian wheat in a tender indicating that supply issues may be abatingGhazl El-Mahalla will debut on the EGX at the beginning of AprilEthiopia will start its first electricity generation from the Renaissance Dam on SundayHRHO plans to pick Goldman Sachs as advisor on NBO, while FAB has tapped Rothschild & Co as its financial advisorCBE and FRA are studying a draft law to regulate alternative financing activities SAUD 4Q21 net profit pre-minority interest and appropriations recorded EGP9 million (-98% q/q, -93% y/y), bringing 2021 bottom line to EGP1.13 billion (-9% y/y); The stock is currently trading at P/B22 of 0.5x and P/E22 of 2.9x, with an ROAE of 18%FAIT released 4Q21 net profit after taxes of EGP1,131 mn (+65% q/q,+42% y/y); 2021 results show a net profit after taxes of EGP2,968 mn (+31% y/y); FAIT is currently trading at P/E22 of 3.5x, P/B22 of 0.4x, with an ROAE of 12%EGAL has contracted Bechtel for the rehabilitation of its entire factory; after plans for expanding into a seventh production line have been shelved due to high electricity tariffsImproved operating conditions for cement players and higher prices encouraged The Spanish Egyptian Cement Company (Spegyco) to start operating again after a three-year haltWe downgrade our FV for SPMD to the base case of EGP1.50/share; Excluded all of the new contracts (Libya, Medaf, and Umrah) until they are operational; SPMD is currently trading at 2022e P/E of 9.1x and EV/EBITDA of 6.5xFully vaccinated travelers will no longer be required to get a PCR test before traveling or on arrival to Kuwait and Bahrain; Expect that this trend will continue which will reduce PCR testing volumes and prices throughout 2022HELI is extending the deadline for bidders to submit offers to lease an 11k sqm plot within Merryland Park to 15 March 2022AMER Tourism Development signed a EGP350.0 million medium-term loan to finance Porto Minya and a EGP300.0 million credit facility to finance Porto Saeed; NUCA issued them a warning given slow development rate in Porto Minya