Pre-Trading Thoughts

Al Ahly Pharos

Annual urban inflation came almost flat in October, registering 26.5% YoY, up from 26.4% YoY in September. Monthly urban inflation decelerated to 1.1% MoM in October from 2.1% MoM in September.

The Central Bank of Egypt will auction USD1.5 billion in USD-denominated, one-year t-bills today.

The government now only has USD1 billion in outstanding arrears to foreign oil and gas companies, after having cleared another USD1 billion in arrears last week.

The Ministry of Finance intends to launch the central clearing system, which aims to settle the obligations and rights of taxpayers with the government starting 2025.

ORHD’s (FV: EGP26.26, OW) net profit in 3Q24 reached EGP1.2 billion, up 25.7% y/y and down 36.9% q/q, bringing 9M24 net profit up 1.9% y/y to EGP1.8 billion.

ADIB (FV: EGP80.00, OW) recorded a strong 3Q24 consolidated bottom line post minority of EGP2,228 million (-9% q/q, +61% y/y), bringing 9M24 bottom line post minority to EGP6,802 million (+91% y/y). The bank is currently trading at 0.8x P/B25 and 2.8x P/E25.

ADIB's BoD approved obtaining a subordinated loan of USD66.9 million from the main shareholder ADIB-UAE. The financing is to support the growth and expansion plan, with a tenor of 7 years.

CICH began promoting the IPO of 30% of United Bank's shares in Saudi Arabia, Dubai, London, and South Africa this week.

CNFN is continuing its regional expansion plans in the MENA region and aims to reach Europe in the future.

ABUK released 1Q24/25 financial indicators. Net profit declined 35% YoY (-4% QoQ) to EGP1.28 billion. ABUK is currently trading at FY24/25f PE of 4.7x and EV/EBITDA of 4.1x.

CCAP Chairman, Ahmed Heikal, announced that there is no intention currently to float ERC’s shares on the EGX.

The Egyptian Competition Authority approved requests from ADQ to acquire 25% of EDC, 30% of Ethydco, and 35% of ELAB.

The Egyptian Railway Authority of the Ministry of Transportation will bid for the development and renovation of the USD285 million Robeiky-Tenth of Ramadan-Belbeis freight and passenger railway line next month. The three main qualified consortiums include Spanish Talis - ORAS, France's Alstom - Rowad Modern Engineering, and Italy’s Mermec - Egypt’s Hazeq.

SCEM posted its consolidated results for 3Q24, recording a surge in net attributable income to EGP2.1 billion, reversing comparative quarter losses of EGP41.7 million, and up 16% compared to the previous quarter. This brought 9M24 earnings to EGP2.7 billion reversing comparative period losses of EGP121.4 million. It is worth highlighting that the bottom line included EGP1.5 billion as gain from sale of investments.

Weekly Commodities Update

| | Last Price | WoW Change, %
| Brent, USD/bbl | 73.9 | 1.1%
| Diesel-HSFO Spread, USD/ton | 225 | -5.7%
| Egypt Urea, USD/ton | 406 | 0.0%
| Polyethylene, USD/ton | 980 | 0.0%
| Polypropylene, USD/ton | 965 | 0.0%
| Iron Ore 65%, USD/ton | 124 | 2.4%
| Steel/Iron Ore Spreads, USD/ton | 401 | -2.0%
| LME Copper Cash Price, USD/ton | 9,302 | -1.5%
| LME Aluminum Cash Price, USD/ton | 2,584 | 0.5%
| Egyptia Retail Cement, EGP/ton | 2,848 | 0.5%
| Steam Coal FOB Newcastle Australia, USD/ton | 143 | -0.4%
| SMP, USD/MT | 2,850 | 3.8%
| Last price may vary week over week in some indices due to time difference