Pre-Trading Thoughts

Wheat reserves should cover Egypt's needs for 8 months, after accounting for locally sourced quantities; No need for any additional wheat shipments in the short termThe CBE's, newly released, External Position Report for September 2021, revealed that it extended the tenor of two Saudi deposits, worth USD2.3 billion, until October 2026The government could consider introducing price controls on unsubsidized bread if sellers continue to raise their pricesGlobal oil prices closed at their highest levels since 2008 after the US and UK announced they would ban the import of all energy imports from Russia; Brent is trading at USD131.31/bblEFIH will release 2021 financial results today. We expect net profit to come in at EGP522 million (+48.2% YoY). Revenues are expected to record EGP1.88 bn (+53% YoY); EFIH is currently trading at 2022f P/E of 40.4x and EV/EBITDA of 31.3xOCDI reported fantastic 4Q21 results, with sales up 81.0% y/y to EGP6.0 billion, bringing FY21 sales up 53.7% y/y to EGP11.4 billion, boosted by the launch of June on the North Coast in 4Q21. 4Q21 net profit increased 88.5% y/y to EGP517.8 million, taking FY21 net profit up 4.9% y/y to EGP860.0 millionEMFD achieved solid FY21 sales of EGP23.2 billion, up 28.9% y/y. Net profit in 4Q21 reached EGP1.3 billion, up 84.4% y/y, bringing FY21 net profit to EGP4.1 billion, up 117.8% y/y. Net cash is at EGP11.5 billion at the end of 4Q21 (97.3% of market cap)PORT reported growth in FY21 results despite weak 4Q21 figures, with sales in 4Q21 reaching EGP295.0 million, up 21.9% y/y, bringing FY21 sales to EGP1.5 billion, up 19.7% y/y. FY21 net profit before minority to EGP92.9 million, up 2.3xPHDC Board approved a EGP371.0 million receivables securitizationPHDC acquired a 7.97% stake in Incolease (ICLE) for EGP65.4 millionACAMD Board approved the offer from El Rawasy for Real Estate Development to co-develop the 60k sqm Zefta land plot; The offer projects project revenue of EGP4.0 billion, with 35.0% going to ACAMD and 65.0% going to El RawasyJUFO is to resume operations in the Assiut yogurt factory, which has been closed since 2016, in preparation for Ramadan, when yogurt demand usually triples compared to other months; Management also declared that new products will be launched within a few daysHRHO’s subsidiary Valu, has partnered with the online marketplace Noon to provide installment plans for customers worth EGP500 or moreCNFN has signed a factoring agreement worth EGP100 million with the B2B marketplace Capiter, with the aim of expanding its financing activitiesHoldiPharma intends to sign a EGP1.0 bn a financing agreement to finance a development plan for its subsidiaries and accordingly expand exports; HoldiPharma holds stakes in AXPH, CPCI, and ADCI