President Abdel Fattah El Sisi received a phone call from IMF Managing Director yesterday, discussing the government’s economic reform program.
New rules making it easier for foreigners to get citizenship were signed into law by El Sisi, including the purchase of real estate units for a value of USD350k. TMGH is a key beneficiary.
The cabinet approved a recent decision by the Interior Ministry to amend the Investment Act regulations to allow foreign investors to acquire year-long non-touristic residencies when proposing investment plans to GAFI.
Finance Minister Mohamed Maait expressed optimism that the New Development Bank — the multilateral lender set up by the BRICS — will provide Egypt with concessional loans to fund infrastructure projects.
Some prepaid cards can no longer be used to make international transactions, according to the CBE, cards that aren’t linked to bank accounts, and issued by digital payments companies Klivvr, Nexta, and Telda.
Importers can now pay just 1% of the tax and fees required to proceed with the customs clearance process before the arrival of imports, down from 30% previously, according to a Finance Ministry decision. The remaining 99% is to be paid upon the arrival of imports. The decision went into effect on 30 May.
The developers of Cyprus’ Aphrodite field plan to build a subsea pipeline linking the offshore gas reservoir to an Egyptian LNG processing facility.
Trade and Industry Minister issued a decision allowing industrial investors to pay for licenses every three or five years, instead of annually.
An energy firm will make its debut on the EGX within two months, according to EGX head Ramy El Dokany.
The exchange is terminating its EGX50 index due to its limited usefulness and will launch a new Sharia-compliant index.
Negative net foreign position fell in April for the first time since December, by USD 162.7 million, reaching USD 24.1 billion, compared to USD 24.3 billion during last March, supported by a decrease in the commercial banks negative NFA, while it widened at the CBE.
SWDY (FV: EGP22.87, OW) achieved solid 1Q23 results recording a surge in net attributable income to EGP2.9 billion in 1Q23, almost 4-fold the earnings in 1Q22 and 25% higher than 4Q22. Bottom-line growth was accelerated by higher profitability across all business segments, coupled with higher FX gains that partially offset rising financing costs and SG&A expenses. SWDY is currently trading at FY23e P/E of 4.4x and EV/EBITDA of 4.7x. Please refer to our note published earlier today for further details.
ORAS general assembly approved the purchase of 6,517,444 of its own shares (the “Shares”), representing 5.58% of the Company’s total issued share capital at a price of USD3.00/share.
OLFI (FV: EGP14.11, OW) released 1Q23 financial results:
- Net profit for the quarter recorded EGP115.2 mn (+27.1% YoY, -15.2% QoQ) with a margin of 7.8% versus 9.8% in 1Q22 and 9.6% in 4Q22. The sequential pressure in net profitability came backed by FX losses. The rise in net interest expense took a toll on bottom-line as well due to the rise in the company’s net debt.
- We raise our FV for OLFI to reach EGP14.11/share from a previous EGP11.60/share and uplifting our recommendation to Overweight.
- OLFI is currently trading at a FY23 P/E of 9.7x and and EV/EBITDA of 5.2x.
POUL (FV: EGP5.90, EW)
- POUL achieved record breaking results for the quarter. Net profit recorded EGP556.1 mn compared to EGP52.5 mn in 1Q22 and EGP76.7 mn in 4Q22. The huge peak is backed by a sur