*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.

Market Overview
COMI
ADIB
EKHOA
ETEL
EFIH



Prepared by: Mayada Amin- CETA , CFTe

The government is mulling a permanent exemption for factories from property taxes and either raising the residential tax exemption cap or doing away with it altogether for first homes, Deputy Finance Minister said.

Remittances from Egyptians working abroad more than doubled YoY in September to hit USD2.7 bn.

The CBE sold EGP75.2 bn worth of t-bills with record average yields of 30.9% for three-month bills, 30.6% for six-month bills, 28.4% for nine-month bills, and 26.2% for year-long bills.

Tax revenues grew by 41% during the period July through October, compared to the same period of the previous year, the head of the Egyptian Tax Authority said.

A consortium of Chinese investors and the private and government sectors in Egypt seek to establish an integrated agricultural complex on an area of one million acres in the New Valley Governorate, with investments estimated at about USD7 billion.

EFID reported 3Q24 financials with attributable net profit recording EGP362 million in 3Q24 (-16.0% YoY, +13.7% QoQ), bringing 9M bottom line to EGP1,120 million (-6.0% YoY). EFID is currently trading at 2025f P/E of 9.4x and EV/EBITD of 6.9x.

United Bank’s private placement that wrapped yesterday was 6x oversubscribed. Retail investors will soon get their chance to buy up a piece of United Bank in the offering’s retail placement set to begin tomorrow and run until 3 December.

CICH's consumer finance firm, Sohoula, announces the completion of its first securitization bond issuance deal for BM Lease amounting to EGP478 million.

Saudi Arabia’s National Security Services Company (SAFE) will provide EFIH with comprehensive and secure security system for digital payments under an MoU inked between two sides during Cairo ICT.

Polish renewables player ‘Hynfra’ announced its plans to set up a USD10.6 billion green ammonia facility in Egypt with production capacity of 1 million tons per year, according to a statement from the General Authority for Investment (GAFI). The first phase of the project is set to be up and running by 2030, which will cost some USD1.6 billion and have a production capacity of 100k tons of green ammonia per year.

UK oil and gas giant ‘Shell’ will boost its natural gas production by 170 million cubic feet per day by the end of December, according to Asharq Business.

Market Overview


Prepared by: Mayada Amin- CETA, CFTe

Imported mobile phones could be subject to customs and tax fees totaling 37.5%, as part of incoming government regulations to support the country’s mobile phone manufacturing localization efforts.

Prime Minister is gearing up to announce “positive news” regarding the airport privatization plan developed with the International Finance Corporation (IFC).

Infinity Power, UAE’s Masdar, and Hassan Allam Utilities will soon launch a tender for a contractor to carry out their combined 1.2 GW solar projects planned for the Dahkla Oasis and Benban plant in Upper Egypt.

The Ministry of Petroleum intends to launch an international bid for gold exploration in areas in the Eastern Desert.

The CBE balances at the International Monetary Fund rose to EGP31.172 billion at the end of October, compared to EGP18.243 billion at the end of September 2024.

The Egyptian government expects the World Bank to respond in 1Q25 to its request for new financing worth USD250 million in order to implement the state ownership policy.

Jade Textile Company, a subsidiary of the Turkish Yeshim Group in Egypt, is implementing investment expansions in its factories in Cairo, Ismailia, and Alexandria, with a total investment of USD180 million.

ORAS reported a steady set of results for 3Q24. Net income attributable to shareholders came in at USD21.6 million (+34% YoY, +12% QoQ) in 3Q24. This brought 9M24 bottom line to USD87.0 million, down 24% YoY. ORAS is currently trading at FY25e PE of 5.3x and EV/EBITDA of 1.2x.

United Bank private placement on the EGX will wrap up later today. The offering is reportedly already 3x oversubscribed with still one day left of the placement to go. Retail subscription is starting on Wednesday until 3 December.

The IFC inked an agreement with COMI that will see it grant the bank some USD150 million in soft financing aimed at supporting COMI’s efforts to promote micro and small and medium-sized enterprises.

BTFH's platform NEBIT aims to penetrate non-traditional fertilizer activities and agricultural supplements.

Catalyst Partners Middle East (CPME) made its EGX debut yesterday. The SPAC listed 1 million shares with a nominal value of EGP10/share.

JUFO BoD has initially approved the merge of Elmasreya for Dairy Products Company, Eldawleya Modern Food Industries Company, Egyptian Food Industries Company - EGYFOOD, and Al Marwa Food Industries Company into JUFO based on the book value of these companies according to FY23 financials.

Egypt's chemicals and fertilizers exports increased by 5% YoY to USD6.5 billion in 9M24.

Weekly Commodities Update

| | Last Price | WoW Change, %
| Brent, USD/bbl | 75.2 | 5.80%
| Diesel-HSFO Spread, USD/ton | 260 | 9.20%
| Egypt Urea, USD/ton | 354 | 0.00%
| Polyethylene, USD/ton | 975 | -0.50%
| Polypropylene, USD/ton | 960 | -0.50%
| Iron Ore 65%, USD/ton | 121 | 2.70%
| Steel/Iron Ore Spreads, USD/ton | 389 | -4.00%
| LME Copper Cash Price, USD/ton | 8,848 | -0.40%
| LME Aluminum Cash Price, USD/ton | 2,597 | -1.20%
| Egyptia Retail Cement, EGP/ton | 2,849 | 0.00%
| Steam Coal FOB Newcastle Australia, USD/ton | 141 | -0.40%
| SMP, USD/MT | 2,882 | 1.10%
| Last price may vary week over week in some indices due to time difference

Market Overview

prepared by: Mayada Amin- CETA, CFTe

In line with our expectation, the CBE left interest rates unchanged after its MPC Committee met on Thursday.

A coalition of Chinese companies has been established to develop a 1 million feddan integrated farming zone in the New Valley Governorate.

Planning and International Cooperation Minister Rania Al Mashat met with a delegation from the European Union to discuss unlocking EUR1.8 billion in investment guarantees from the bloc.

The government is planning to slash customs clearance times to two days by 2025, Investment Minister Hassan El Khatib said.

The Senate will vote on a bill that aims to tighten restrictions on those aiming to join the importers registry, stipulating that those aiming to join the register should have a capital of at least EGP500k, and for limited liability companies to have a paid up capital of at least EGP2 million.

A group of Saudi families intend to pump investments of USD150 million into the Egyptian market in the coming period, according to the head of Business City Group, an investment advisory company.

The Suez Canal Economic Zone (SCZone) signed a land usufruct agreement with ORAS subsidiary, Orascom Industrial Parks, for its already announced EGP13 billion integrated industrial complex planned for the Sokhna Industrial Zone.

A consortium of international institutions is to provide some USD106 million in new funding to the Red Sea Wind Energy (RSWE) — a JV between ORAS, France’s Engie, and Japan’s Toyota Tsusho/Eurus Energy.

PHDC and Marriott International signed an agreement to establish The Ritz-Carlton Residences.

CCAP sent a release concerning an administrative seizure by the Egyptian Customs Authority on ERC for a total amount of EGP379 million representing tax differences and customs duties due for 15 customs declarations, in addition to additional added tax (VAT ). In conclusion, the negotiations between the Egyptian General Petroleum Corporation and the Customs Authority on 20 November 2024 successfully led to the Customs Authority lifting the administrative seizure.

A consortium of local banks is currently studying a USD100 million syndicated loan for the Egyptian Bioethanol Company (EBIOL) to build its bioethanol factory in Damietta with a capacity of 100k tons per year. We note that SKPC owns 7.5% of EBIOL.

We updated our FV of PHAR to EGP63.25/share and maintain Overweight.

PHAR’s USD100 million biopharma factory is set to launch operations in 1Q25, according to a Health Ministry statement. The factory aims to localize the production of biologics and biopharmaceuticals both in terms of their final products and as active ingredients.

HRHO’s commercial bank, Bank NXT, signed a cooperation protocol with the Urban Development Fund (UDF) to provide mortgage financing to individuals purchasing UDF units in governorates across the country.

National Investment Bank (NIB) sold almost its full stake of 9.99% in MBSC in a deal worth EGP287.3 million. NIB sold 6.11 million shares at a price of EGP47.00/share.

A number of car agents are negotiating with El Nasr Automotive to use its production lines to locally assemble some of their models during the coming period.

The contracts of beet sugar producing companies recorded an increase during the current season, supported by an increase in the cultivated area of beets by 16% since the start of the planting season last August until 10 November.

Market Overview
CIEB
ADIB
FAIT
CSAG
FWRY


Prepared by: Mayada Amin- CETA, CFTe