*Key news articles for today*

The government is planning to issue its first EGP-denominated sovereign sukuk in the domestic market in the next fiscal year.

The government is planning to localize 50% of all vaccine production by 2030. There will then be efforts to increase this to 75% by 2035 and full self-sufficiency by 2040.

The government has allocated a total of EGP10 billion to settle a significant portion of debts owed to pharma and medical supplies companies, to be paid over the next three weeks.

Egypt is looking to raise the industrial sector’s contribution to the country’s total GDP to 20-30% from its current 14%. Also the government is planning to up the local component ratio in the industrial sector to 70-80%, up from no more than 40-50% at the moment.

The CBE sold EGP443 million worth of 3-year, fixed-rate, EGP-denominated treasury bonds in Monday’s auction at a weighted average yield of 24.1%.

The Supreme Committee for Partnership Affairs decided to put forward 12 projects in water treatment, sewage, and electricity networks, to be implemented in partnership with the private sector.

The Ministry of Petroleum continues to secure Egypt’s needs for natural gas during the summer months by continuing to import LNG via gasification ships to secure the equivalent of 1 bcf per day throughout the summer period.

We raised our FV of ORAS to EGP425.00/share (USD8.50/share), up from the previous EGP344.18/share (USD7.38/share), implying an upside potential of 43% while maintaining our Overweight recommendation. Our updated valuation model factors in the preliminary estimate of impact of the development of the mega project, Ras El-Hekma, rolling over the model and updating our macro assumptions, and assuming a 50% of the estimated maximum claim of USD311 million that could be imposed on ORAS in Sidra’s arbitration case. ORAS is currently trading at FY25e PE of 5.1x.

ESRS stated that the transformer of meltshop No. 2 of Ezz Flat Steel Company (EFS), Suez, a subsidiary, suffered a major malfunction. The repair period is expected to extend for approximately 9 months. This should have a negative impact on ESRS where its production levels will return back to pre-2023 levels to around 5.4 million tons of finished products, down from the current 7.0 million tons. Negotiations should be taking place with the insurance company regarding the amount of compensation. We expect FY25 revenue and bottom line to drop by 10-12% below our estimates for the year as a result of the meltshop suspension.

SVCE reported 9M24 losses amounting to EGP237.5 million, compared to 9M23 net loss of EGP63.1 million, despite an 86% YoY spike in revenue to EGP1.1 billion.

United Bank retail placement is set to begin later today and run until 3 December.

EFIH and Africa-focused digital solutions company Cassava Technologies signed an agreement that will see the two firms identify areas for collaboration and joint expansion in Egypt and Africa.

MFPC targets finalizing two green hydrogen projects and expanding the company's capacity of urea in 2027 with total investments worth USD400 million.

Flydubai will start offering daily direct flights between Dubai International Airport and Alamein International Airport starting next summer. The route will operate between 21 June and 7 September.

Hotels in Luxor raised prices by 33-50% y/y in November 2024. Occupancy rate in Luxor in November 2024 increased to 80% from 65% in November 2023.

Al Mansour Automotive is partnering with China’s state-owned SAIC and another unnamed partner to establish a factory for assembling both traditional and electric cars for SAIC-owned brand MG in Egypt. The factory is expected to begin production within the next two years.