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Update: 2023-05-31
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JUFO (FV: EGP14.00, OW) released 1Q23 bottom line of EGP339 mn (+134.9% YoY, +107%, QoQ), backed by enhanced gross profitability, cost-cutting measures, and exports, despite the heightened interest expenses and FX losses. Price increases did not compensate for volumes drop. JUFO is trading at a FY23 P/E of 11.1x and an EV/EBITDA of 6.1x.

EAST (FV: EGP24.72, OW) released 3Q22/23 bottom line of EGP1,801 mn (+35.3% YoY, -11% QoQ) backed by the company’s interest income and FX gains. The squeeze in gross margins sequentially is due to the rising costs starting to catch up with the company. The price increase implemented by March 2023 is expected to reflect by 4Q22/. EAST is trading at a FY23/24 P/E of 6.4x and an EV/EBITDA of 2.9x.

ARCC (FV:EGP9.94, OW) posted consolidated 1Q23 attributable net income of EGP242 million (+4-fold YoY, +2.5-fold QoQ). The surge in earnings was attributed to considerable revenue growth as well as healthy margins, despite forex loss of EGP104 million. Selling price increases outpaced that of production costs. ARCC is trading at FY23e P/E of 5.1x, EV/EBITDA of 2.7x and EV/ton of EGP636.

MBSC posted its unaudited financial results for 1Q23 recording earnings of EGP61 million (+29% YoY, -75% QoQ). The annual surge in earnings was supported by almost nil tax expense and forex losses reported in other comprehensive income. The sequential drop came as a result of the reversal of the EGP380 million provision booked in 4Q22. Lower sales volumes. MBSC is currently trading at FY23e P/E of 11.1x, EV/EBITDA of 9.1x and EV/ton of EGP675.  MBSC board of directors approved purchasing 10% of the company’s total shares as treasury shares.

Siemens - SWDY (FV: EGP19.97, OW) consortium has now a higher chance to win the bid for the rehabilitation of hydroelectric power plants in Aswan (EUR41 million) after the withdrawal of Sinohydro-Power China consortium from competition. 

The Egyptian Ministry of Housing is close to presenting the first package of water desalination projects (29 projects) to the private sector. 

PHDC (FV: EGP3.91, OW) achieved solid 1Q23 sales of EGP6.8 billion, up 22.3% y/y and down 20.1% q/q, supported by sales in Badya and in Palm Hills Alexandria. Net profit in 1Q23 reached EGP252.7 million, down 14.3% y/y and 26.8% q/q, due to a 145.1% y/y increase in finance cost to EGP368.4 million. 

BINV released positive 1Q23 financial results, where the consolidated bottom line recorded EGP331 mn implying 15x growth y/y. 1Q23 net income excludes a capital gain of EGP530 mn resulting from the sale of  BINV’s stake in TOTAL Energies Egypt (which was booked in the retained earnings directly). 1Q23 comprehensive income reached EGP 861 mn. BINV is currently trading at P/E23 of 5.4x and P/B23 of 1.1x.

HDBK 1Q23 standalone bottom line recorded EGP1,325 million (+163% q/q, +107% y/y, driven by 1) robust margins, 2) strong non-interest income, and 3) slower growth of OPEX than operating income. HDBK is currently trading at 2023 P/E of 4.0x and P/B of 0.8x.

CANA's 1Q23 net profit recorded EGP251 million (+161% y/y,-63% q/q), on the back of strong top-line growth (+90% y/y), and strong non-interest income growth (+302% y/y), driven by FX gains. Sequentially, there is a high base effect (EGP666 million). FRA has approved CANA’s latest round of capital increase, from EGP3.6 bn to EGP4.3 bn, through 0.194 bonus shares/CANA share. The stock is currently trading at P/B23 of 0.3x and P/E23 of 2.5x.

Orascom Investment Holding (OIH) is exploring investments in Uzbekistan’s renewables and hospitality sectors, as part of a USD1.2 bn investment plan.

AIH released 1Q23 standalone financials where the bottom line recorded EGP9.2 million (-75%y/y, -62.3%q/q) on the back of higher provisions, and weaker top-line. AIH’s BoD approved increasing the company’s paid-in capital from EGP404.7 million to EGP490.7 million through 0.05 bonus shares/AIH

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