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Prime Minister Mostafa Madbouly stated that the fifth review of the IMF loan program will start within few days, according to local press.              Egypt is committed to paying USD725 million to the IMF during the current month of May, and USD962 million in June, after paying USD1.56 billion during 4M2025.The Madbouly government expects to raise USD4-5 bn from selling stakes in 11 state-owned companies during the fiscal year 2025-2026, as a part of its privatization program.The government is putting together new incentive criteria and additional benefits for automakers participating in the Automotive Industry Development Program in a bid to boost local component rates to 65% from 45%. The revised incentive framework introduces a new methodology for calculating local component requirements and value-added metrics. The framework will be presented to Prime Minister Moustafa Madbouly before being submitted to President Abdel Fattah El Sisi for final approval.The cabinet approved the official rollout of the Universal Health Ins. System in Aswan starting 1 July 2025. As part of the plan, non-emergency medical services will be suspended for uninsured individuals beginning 1 January 2026.Egyptian Prime Minister Mostafa Madbouly said that Egypt is negotiating with Saudi Arabia on joint projects with the Egyptian private sector across different sectors.Egypt and Greece signed a strategic partnership yesterday during President Abdel Fattah El Sisi's visit to the country, according to an Ittihadiya statement. The two sides also inked agreements to boost cooperation in a number of fields.The Madbouly government increased Exxon Mobil's production share from the Masry and Cairo offshore concessions to 40%, up from 15%. The government also extended the concessions' cost recovery period to seven years from five to encourage the company to increase its investments in Egypt's energy sector.Thirty Egyptian companies are considering establishing new factories in Morocco in the coming period, to boost joint investments between the two countries.The Federal Reserve held interest rates steady on Wednesday but said the risks of higher inflation and unemployment had risen, further clouding the economic outlook as the U.S. central bank grapples with the impact of Trump administration tariff policies.TMGH achieved impressive YTD sales of over EGP160.0 billion, up 127.0% y/y, driven by the launch of the second phase of SouthMed which generated sales of EGP70.0 billion in one day.AMOC released 3Q24/25 unaudited financial indicators. Net profit surged to EGP463 million (+18% YoY, +158% QoQ) in 3Q24/25. Over 9M24/25, net profit inclined 5% YoY to EGP1.1 billion. AMOC is currently trading at a FY24/25e PE of 10.7x.EGBE released key financial indicators with 1Q25 standalone bottom line recorded EGP781 million (+26% q/q, +45% y/y, and +14% higher than Al Ahly Pharos Estimates of EGP686 million). EGBE is currently trading at P/E25 of 2.6x and P/B25 of 0.6x. AGM approved the distribution of cash dividends of 0.59/share, which implies a payout ratio of 12% and DY of 3.7%.

*Key news articles for today*Net International Reserves inched up to USD48.14 billion at the end of April, up from USD47.76 billion in March. The ascent is driven by a USD1 billion increase in the value of gold component of reserves, driving the reserves up, despite the lower value of foreign currencies which recorded USD34.32 billion down from USD35.14 billion in March.Trump said the US would stop attacking the Houthis in Yemen, as Oman confirmed a "ceasefire" had been reached with the Iran-backed group for it to stop targeting shipping in the Red Sea.The Finance Ministry is looking to collect some EGP722 mn from the incoming stamp tax on EGX transactions in the upcoming fiscal year, as part of a broader plan to collect some EGP 61 bn from stamp duties through various channels, a government source said. The draft law for the implementation of the stamp tax on EGX transactions is currently in its final stages of preparation ahead of being submitted to the House of Representatives for final approval, upon which it would replace the long-delayed capital gains tax on bourse transactions.The Tourism Ministry is looking to secure some EGP200 mn to launch the second iteration of the subsidized loan program for hospitality players, Tourism Minister Sherif Fathy said.The International Finance Corporation (IFC) plans to invest USD1 bn in Egypt's agriculture and food industries during 2025, an IFC official said.The IFC is seeking to secure USD600 million in financing for the Abydos 2 project, which will be the largest photovoltaic solar power plant in Egypt, equipped with a battery energy storage system, and cost exceeding USD750 million.Egypt will host a delegation from the European Commission late in May to finalize negotiations to unlock a tranche of the EUR4 bn grant from the EU. Egypt is studying a plan to ramp up imports from Morocco to USD600 mn over the coming period to address the trade imbalance between the two countries.Chevron will invest at least USD120 mn in a new exploration concession to explore for oil and gas in the West Star concession in the northeast Mediterranean.OLFI released 1Q25 financial results, reporting net profit of EGP184 million (+17.2% YoY, -34.8% QoQ). OLFI is currently trading at FY25f P/E of 6.3x.POUL has signed an exclusive licensing agreement with French firm Avril to manufacture and distribute the “Sanders” and “Golden Horse” brands in Egypt and the Gulf region. The partnership involves investments totaling EGP200 million, with projected annual sales volume reaching 9,000 tons.Scatec has kicked off construction of its USD590 million, 1.1 GW Obelisk solar project with 200 MWh of battery energy storage in Nagaa Hammadi. The project will be fully operational in the second half of 2026. The project could cover up to 40% of EGAL's electricity needs and save more than 15% of the company's electricity cost. 

The CBE has released the Balance of Payment (BoP)'s performance report for 1HFY2024/25. Key points are: 1) The overall BoP recorded a deficit of USD503 million in 1HFY2024/25, and 2) The current account (CA) deficit has surged by 15% YoY to c. USD11.1 billion. A team from the International Monetary Fund will begin the fifth review of the Extended Fund Facility Arrangement in Cairo this week. Further details will be communicated at the conclusion of the mission,” IMF Press Officer Angham Al Shami said.The headline PMI declined from 49.2 in March to 48.5 in April, which was the lowest reading in 2025 so far. The downturn was widely attributed to a weakening of demand at non-oil companies. Lower levels of activity and new work led non-oil companies to rein in purchases of inputs for a second month in a row. Input prices in the non-oil economy rose at their fastest pace in four months in April, however, output prices were unchanged.A tranche of the EUR4 bn grant from the EU could land in state coffers within weeks, EU Ambassador to Cairo Angelina Eichhorst told MENA news agency. The financing, part of a broader EUR5 bn macro-financial assistance package agreed in March 2024, was approved by the European Parliament last month.The Madbouly government has agreed with Italian energy player Eni to raise the purchase price of new natural gas from onshore areas by 60%, a government official said. The hike will apply to output from sites managed by Agiba — a JV between Eni subsidiary IEOC and the Egyptian General Petroleum Corporation (EGPC).The state is considering a proposal to allow every family to purchase a residential unit with affordable mortgage terms, including a subsidized interest rate and a repayment period of eight years at most, according to a cabinet statement. The initial plan prohibits selling the properties for a certain period of time.PHDC achieved remarkable 1Q25 sales of EGP80.2 billion, up 148.4% y/y from an already strong 1Q24 and up 286.4% q/q, putting PHDC on track to achieve its FY25 sales target of EGP200.0 billion, which would imply a 32.4% y/y increase.EGAL reported 3Q24/25 KPIs. Net profit after tax of EGP2.5 billion in 3Q24/25 (+42% YoY, -19% QoQ), EGP9.9 billion in 9M24/25 (+89% YoY). Bottom line performance was shaped by relatively tight operating margins along with a foreign exchange loss of EGP813 million that hit the P&L in 3Q23/24.  EGAL is currently trading at FY24/25e P/E of 5.5x. SWDY has acquired a 60% stake in Thomaseen Services to expand into the oil and gas industry. The acquisition consists of Thomassen's Middle East and Africa business unit, filters manufacturing, and its African business affiliate. CLHO stated in a press release that it secured all necessary approvals to increase its ownership in Cairo specialized hospital from 57% to 90% of the company's shares. ISPH cancelled its plan to transfer el sherouk Pharma hospital to its investment arm "AIM" due to obstacles in issuing the needed licenses and approvals. ISPH added that it plans to exit from the hospital within three years.EFID BoD approved the sale of a production line and machinery, which have been previously imported by EFID, to Ahramat Al Nile for General Trade and Food Industries-limited liability, located in Iraq, with total amount of USD3.0 million. 

*Key news articles for today*Abu Dhabi wealth fund ADQ-owned AD Ports Group has inked a 50-year renewable usufruct agreement with the Suez Canal Economic Zone (SCZone) to develop and operate an industrial and logistics zone spanning 20 sqkm in East Port Said. Net foreign assets in Egypt's banking sector increased for the third consecutive month to USD15.04 billion in March, up c. 47.5% from February's USD10.2 billion. Commercial banks recorded their first surplus since August; their net foreign assets came in at USD2.5 billion in March. The government is preparing to unveil a revamped export subsidy program that will roughly double support rates across all sectors, introduce new incentives for branded exports, and prioritize higher value-added sectors. The framework is expected to be formally announced soon, come into effect on 1 July, and run through 2028.  The CBE has plans to issue a record EGP2.2 trillion in t-bills and bonds during the fourth quarter of the current fiscal year, marking a 9.7% q/q increase, to help cover the budget deficit.  The government plans to purchase 8.5 million tons of wheat in the upcoming fiscal year, split between local and imported supply. That is around 300k tons more than FY24/25. The government plans to implement a number of amendments and measures to increase the expected VAT proceeds during the next fiscal year, by including new sectors in the formal economy and applying the tax to entities previously exempted from it. This comes amid expectations of lower production costs and a further reduction in interest rates.  Sources told press that allowing banks to process customs imports after the official working hours without restrictions will expand the import and export base for investors, which will positively impact VAT revenue. ABUK released 3Q24/25 unaudited financial indicators with net profit came of EGP3.3 billion (-59% YoY, +5% QoQ). This brought 9M24/25 bottom line to EGP7.8 billion (-36% YoY). ABUK is currently trading at FY24/25f PE of 5.0x. EFIC released 1Q25 unaudited standalone results with net profit increasing by 32% YoY (-78% QoQ) to EGP208.9 million. EFIC is currently trading at FY25f PE of 5.2x. ABUK subsidiary North Abu Qir for Agri-Nutrient Company's Board of Directors approved the establishment of a new company under the name Khaleej Abu Qir for Agri-Nutrient as a private free zone company with an authorized capital of USD100 million and issued and paid-in capital of USD5 million.  ABUK subsidiary Global Company for Methanol and its Derivatives' general assembly approved the liquidation of the company, and the redemption of the shareholder shares in the company's capital. TMGH (FV: EGP75.00, OW) launched the second phase of SouthMed on the North Coast. Weekly Commodities Update|   | Last Price | WoW Change, % | Brent, USD/bbl | 66.9 | -1.6% | Diesel-HSFO Spread, USD/ton | 216.7 | 2.1% | Egypt Urea, USD/ton | 392.5 | -0.6% | Polyethylene, USD/ton | 940.0 | 0.0% | Polypropylene, USD/ton | 990.0 | -0.5% | LME Aluminum Cash Price, USD/ton | 2,396.3 | 2.9% | LME Copper Cash Price, USD/ton | 9,376.4 | 2.4% | Egyptian Retail Cement, EGP/ton | 3,527.0 | 0.1% | Steam Coal FOB Newcastle Australia, USD/ton | 93.8 | -1.4% | SMP, USD/MT | 2,795.0 | -2.8%

Tourist arrivals rose 25% y/y in 1Q25 to 3.9 million. Tourism minister expects the 5% y/y increase in 2024 to be followed by an 8% y/y increase in 2025.The House of Representatives will start discussing amendments to the Old Rent Law today.The IMF said in its latest Regional Economic Outlook that “economic activity is expected to pick up but remain modest” this year in Egypt.According to IMF data, public debt fell to 89% of GDP by the end of FY23/24, compared to 95.7% at the end of the previous year.Fitch Solutions expects Egypt's economic indicators to gradually improve during the period from the current fiscal year until 2027/2028.Net sales of government bonds and treasury bills by foreign investors amounted to approximately USD1.7 billion during the month of April 2025.President El Sisi has given the final approval for the revamped Labor Law.International oil companies Chevron, Shell, and Eni have submitted offers for exploration blocks in the Mediterranean.Eni plans to inject USD1 billion in new investments in the Zohr field.Japanese medical device manufacturer JMS, its local agent Interpharm, and the Egyptian Company for Medical Investments will establish a EGP1.4 billion factory for blood collection bags and tubes in Ain Sokhna's industrial zone.Chinese firm XinGaoyi Medical Equipment (XGY) and the Arab African Company for Medical Industries (AACMI) signed a partnership agreement to establish a factory to locally manufacture medical equipment.Chinese solar tech company TrinaSolar is looking to increase its solar panel sales in Egypt by 20% y/y in 2025 to reach USD600 million.CIEB 1Q25 consolidated bottom line recorded EGP1,869 million (-4% q/q, -18% y/y). CIEB is currently trading at P/E25 of 3.1x and P/B25 of 0.9x.SWDY will distribute cash dividends of EGP1.00/share on 15 May 2025 for shareholders on record on 12 May 2025 (DY 1%).The Ministry of Finance intends to unify the value-added tax rate on contracting activities at 14% instead of the 5% currently applied to supply and installation works combined. CIRA released its 2Q24/25 financial results, reporting a net profit of EGP226 million (+20.3% YoY, +26.8% QoQ). CIRA is currently trading at FY24/25f P/E of 29.6x and EV/EBITDA of 7.6x.GBCO plans to introduce three new models of the Chinese automotive brand, Changan, in the Egyptian market during 2H25.RMDA's general assembly approved cash dividends of EGP0.11/share to be distributed over two equal installments in June and November. The assembly also approved 0.3:1 bonus shares.ALCN released financial indicators showing 9M24/25 net profit of EGP5.4 billion, up 31.1% y/y.CCAP has contracted with independent financial advisor Graviton Financial Advisory for Securities to conduct a study of the fair value of the company's shares. Upon completion, the extraordinary general assembly will be invited to consider increasing the company's capital.

Wall St closed mixed on Wednesday following the release of US GDP data for Q1 that indicated economic contraction of 0.3% QoQ which is well below the 2.4% expansion reported in Q4 and below economists' expectations of a 0.5% rise in GDP for the latest reading. The slide in GDP enhanced investor fears of a US recession which impacted equities on Wednesday. The Dow Jones rose 0.35%, and the S&P500 gained 0.15% but the Nasdaq ended the day down 0.09%. Consumer confidence, JOLTs Job Openings and the personal spending index all in the US were also released for the latest period overnight with each coming in poorer than economists' were expecting.European markets closed higher on Wednesday as investors reacted to worse-than-expected economic data out of the US. The STOXX 600 rose 0.46%, Germany's DAX gained 0.32%, the French CAC added 0.32% and, in the UK, the FTSE100 ended the day up 0.37%Asia Markets closed mixed on Wednesday as investors digested an array of key economic data out in the region and ahead of the Bank of Japan's rate meeting kicking off. Japan's Nikkei rose 0.57%, Hong Kong's Hang Seng gained 0.51%, and China's CSI index fell 0.12% after China's manufacturing activity dropped more than expected in April to enter contraction territory.Locally on Wednesday, the ASX extended its rally into the midweek session with a gain of 0.7% taking lead from Wall Street's strength on Tuesday. Real estate stocks led the gains on Wednesday while other rate sensitive sectors like Tech and consumer discretionary stocks posted notable gains.Australia's latest inflation reading for the March Quarter was released yesterday with monthly inflation rising 0.9% while the annual rate remained at 2.4%. Trimmed mean inflation fell to 2.8% in the quarter which is now back within the RBA's target 2-3% range. Markets are expecting a 62% chance of a rate cut to be announced at the next RBA meeting in May prior to the CPI reading release yesterday.Gold producer Northern Star Resources (ASX:NST) extended its sell-off yesterday after the gold giant lowered its output guidance for FY25, while Ora Banda (ASX:OBM) also tumbled over 6% after also lowering full-year production guidance.What to watch today:Ahead of Thursday's trading session the SPI futures are anticipating the ASX will open the first session of the new trading month down 0.34% following Wall Street's turbulence overnight.On the commodities front this morning oil is trading 3.42% lower at US$58.35/barrel, gold is down 1.13% at US$3279/ounce and iron ore is down 0.1% at US$99.76/tonne.The Aussie dollar has strengthened against the greenback overnight to buy 64.08 US cents, 91.62 Japanese Yen, 47.61 British Pence and NZ$1.08.Trading Ideas:Bell Potter has downgraded the rating on Regis Resources (ASX:RRL) from a buy to a hold and have raised the 12-month price target to $4.57 on the gold producer following the release of the company's March quarter report which beat BPe on production and costs. The downgrade to a hold is simply due to recent share price appreciation.Trading Central has identified a bullish signal on Autosports Group (ASX:ASG) following the formation of a pattern over a period of 97-days which is roughly the same amount of time the share price may rise from the close of $1.94 to the range of $2.11 to $2.17 according to standard principles of technical analysis.

*Key news articles for today*Egypt is having to increasingly look to debt to bridge the budget deficit and repay its debt obligations, with the government financing gap in the next fiscal year's draft budget up by over 25% to EGP 3.6 tn. The widening shortfall is attributed to a fall in non-tax revenues coupled with increased social spending. The days of investors trudging from government office to government office to get projects off the ground may soon be over, with the state set to launch its in-the-works online unified licensing platform next month. The exchange rate of the USD against the EGP fell below EGP 51 this week, as US reduced customs duties began to bring out relief for the market. The rebound in the value of the EGP is down to an increase in foreign investment inflows, a senior banking source said. The Deputy Minister of Electricity, revealed that investments in the project to export Egyptian electricity from renewable energy sources will range between USD15 and USD20 billion, adding that the government recently completed preliminary studies for the project and is in the process of conducting detailed and final studies in cooperation with the Emirati company K&K. The number of tourists arriving to Egypt increased by 25% year-on-year during 1Q2025, reaching 3.9 million tourists. The CBE withdrew EGP740.85 billion through the weekly open market auction, with an annual return of 25.5% and for a period of 7 days. ExxonMobil is seeking to sell its only gas discovery in Egypt, Nefertari-1, as it believes the discovery does not fit within its portfolio in terms of the reserves required to begin development and production operations, as it focuses on discoveries with reserves exceeding 4 trillion cubic feet of gas. TMGH (FV: EGP75.00, OW) is in advanced stages of negotiations to develop a mixed-use project on a 14.0 million sqm land plot southwest of Baghdad in Iraq. The project is expected to host around 45k mixed-use units and generate sales of around USD17.0 billion and recurring income of over USD1.5 billion per year upon completion. TMGH expects to receive the land by the end of 2025.               SUGR released 1Q25 financial indicators, with net profit reaching EGP315 million (+45.3% YoY. +8.7% QoQ). SUGR is currently trading at FY25f P/E of 4.9x. SWDY stated they haven't signed new industrial projects in Iraq, but they are still studying some potential ventures.

The MPC is scheduled to meet later today to decide on interest rates. We believe the CBE has the room to ease by up to 200 bps in its meeting today.The Finance Ministry has more than doubled its target for international debt issuances in the draft budget for the next fiscal year, coming in at a total of EGP400 billion (USD8 billion), up from EGP150 billion (USD3 billion) in the current fiscal year, according to official figures. Remittances from Egyptians abroad continued their upward pace at the start of the year, rising 83.2% y-o-y to USD2.9 billion in January, according to a statement from the CBE.  The Finance Ministry expects Suez Canal revenues from transit fees to almost double to USD6.3 billion in the budget draft for FY25/26, compared to USD3.7 billion estimated in the current fiscal year. Suez Canal revenues reached USD3.99 billion in 2024, a 61% decrease compared to USD10.25 billion in 2023, due to lower tonnage, impacted by Red Sea disruptions. Property developer Landmark for Real Estate Development (LMD) is in talks with the Egyptian government to develop a new USD4 billion mixed-use project in Cairo, Managing Partner Hamad Al Abbar said.Chevron — the operator of the last active exploration block in the Red Sea — is reportedly on its way out of the block it operates, Asharq Business reported, citing an unnamed government source. Investment Minister Hassan El Khatib and Tunisian Prime Minister Sara Zaafarani discussed putting into motion a proposal to establish a joint bank to facilitate investment and trade between the nations, according to a ministry statement.Petroleum products' subsidies increased by about EGP28 billion during the 9M24/25, reaching EGP104.9 billion, compared to EGP76.3 billion in the comparable period a year before.MBSC attributable bottom line recorded an impressive EGP495.0 million (+295% YoY, +199% QoQ) during 4Q24, bringing FY24 attributable bottom line to EGP833.5 million (+126% YoY). Enhanced profitability came on the back of sturdy revenue growth and operating margin expansion that trickled down to bottom line. MBSC is trading at FY25e P/E of 8.4x. MBSC BoD approved a capital decrease through the cancellation of treasury shares amounting to 6.1 million shares at a value of EGP61.1 million, resulting in issued and paid-in capital of EGP550.2 million.EFIC will distribute cash dividends of EGP15.00/share over three equal tranches on 30 April, 20 August, and 30 September 2025, for shareholders on record on 27 April 2025. This implies a dividend yield of 10% and a payout ratio of 62% of FY24 earnings. MFPC will distribute cash dividends of EGP1.00/share on 7 May 2025 and EGP2.50/share on 30 September 2025 for shareholders on record on 4 May 2025. DPS totals EGP3.50/share for FY24, implying a dividend yield of 8% and a payout ratio of 48% of FY24 earnings.OCDI intends to sign a co-development agreement with Midar in 3Q25 to develop a 4.2 million sqm land plot in East Cairo.

*Key news articles for today*The International Finance Corporation (IFC) unveiled the list of 11 Egyptian airports slated for development through public-private partnerships (PPP).China's Wu'an Xin Feng signed the contract for its USD1.7 bn integrated metal industries complex in the Ain Sokhna industrial zone with the government yesterday. The Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) has temporarily halted the acceptance of requests to connect solar power plants to the grid until a regulatory framework for net metering and solar self-consumption is finalized.The House of Representatives approved a grant from the Japanese government worth JPY500 million (USD3.3 million) to the Ministry of Agriculture.Local fertilizer player Agro TH plans to establish its second factory in Sadat City in partnership with an Omani investor with an estimated investment of EGP5 bn.Local home appliances manufacturer Royal Home plans to list 20% of its shares on the EGX within the next 18 months.Instapay transfer fees come into effect on Tuesday, 1 April. Transfers will be subject to a 0.1% fee, ranging from EGP0.50 and EGP20 per transaction.ORAS 4Q24 consolidated net income attributable to shareholders decreased 29.2% YoY to USD31.0 million and adjusted net income attributable to shareholders increased 0.4% YoY to USD117.3 million in FY24. ORAS is currently trading at FY25e PE of 4.9x.JUFO reported 4Q24 attributable net profit of EGP298 million (+108.4% YoY, -69.0% QoQ). FY24 attributable net profit recorded EGP2,735 million (+167.9% YoY), missing our estimates of EGP2,969 million. JUFO is currently trading at FY25f P/E of 8.7x.TMGH and Alameda Healthcare signed a partnership agreement to build a 200-bed hospital in TMGH's Madinaty, with investments of EGP5.0 billion.HELI expects its revenue to reach EGP300.0 billion in ten years.EGCH obtained an EGP10 billion credit facility, from a consortium of 6 banks, to finance the company's nitric acid and ammonium nitrate project. The facility is distributed USD93 million in foreign currency and EGP5 billion in local currency.CIEB Annual General Meeting (AGM) has approved the distribution of cash dividends amounting to EGP3.2 per share, reflecting a payout ratio of 50%. The distribution date is set for April 17, and the record date is April 14.COMI has announced cash dividends of EGP2.50 per share. The distribution date is set for April 10, with a record date of April 7. BTFH announced that the coverage rate for the first phase of the company's capital increase subscription reached 92.11% amounting to 4.95 billion shares. ValU plans to issue securitized bonds worth EGP1 billion during the second quarter of this year.ETEL's assembly approved distributing cash dividends of EGP1.50/share, implying a DPO of 25.4% and a DY of 4.1%.Hilton will set up Africa's first Signia Hotel and Signia Residence in West Cairo's Skywalk. The 200-key hotel will include build on 5k sqm space.The Holding Company for Tourism and Hotels is working on adding 3k keys to its portfolio within the coming three years. 

The Madbouly government has formed new committees to address the effects of Trump's tariffs — direct and indirect. The committees are tasked with conducting a comprehensive review of Egypt's customs to adapt to recent global developments and, particularly, the tariffs imposed by some countries in response to US tariffs, a senior government official said. US President Donald Trump said auto tariffs will land “in the next few days,” with additional duties on pharma, lumber, and semiconductors set to follow “down the road”.  Trump said many of these levies will take effect on 2 April. Trump also confirmed a new 25% “secondary tariff” on any country purchasing oil or gas from Venezuela.Egypt aims to initially cut the customs clearance time for goods from eight days to just two — a measure that is expected to take between nine months to a year to be fully implemented. After that, the government aims to cut clearance time to just a few hours. The Finance Ministry aims to collect some EGP 74 bn in customs duties during the current fiscal year, a figure that may grow further with the resolution of disputes and the simplification of procedures, source said.The International Finance Corporation (IFC) will provide advisory services aimed at expanding private sector participation in Egypt's airports under an agreement inked with the Madbouly government yesterday, according to a cabinet statement.The government has requested a re-discussion and deliberation of some articles of the new draft labor law to ensure its compatibility with international standards and achieve greater balance in labor relations. This comes after the House of Representatives initially approved all articles of the law in its plenary session last Sunday.Khalda Petroleum Company plans to invest USD1.15 billion in drilling, exploration, and development activities during the next fiscal year, 2025-2026.An Egyptian-Turkish alliance, comprising the Egyptian Company for Trade and Agencies and the Turkish company "Kelpsen", intends to invest an initial USD10 million to establish a factory for water meters and valves.ARCC reported sturdy 4Q24 financial results with attributable bottom line recording a record EGP492.3 million in 4Q24 (+150% YoY, +55% QoQ), bringing FY24 attributable bottom line to EGP1,160.1 million (+66% YoY). ARCC's Board of Directors proposed no cash dividend distribution for FY24. ARCC is trading at FY25e P/E of 9.2x.ELEC reported a significant drop in attributable net income to EGP25.2 million (-91% YoY, -92% QoQ), bringing FY24 attributable net income to EGP1.3 billion (+6% YoY). COMI AGM decided to pay cash dividends of EGP2.50/share, which implies a payout ratio of 14% of 2024 net profit post minority, and to increase the issued and paid-in capital from EGP30.43 billion to EGP30.708 billion, as part of the ESOP.EXPA AGM approves to distribute 3.7:10 bonus shares.CIRA's BoD approved entering into an interest-free loan agreement convertible into shares in Social Impact Capital Educational Company, with a total amount of SAR15 million, to finance a capital increase in Social Impact Capital Educational Company, bringing CIRA's ownership stake at 61.56% of the company. 

Gas output dropped 20% y-o-y to 4.3 billion cubic feet per day (bcf/d) in January, marking its lowest monthly level since December 2016.Dana Gas, one of the key producers in the Nile Delta, plans to launch a USD100 million project to develop production after receiving the rest of its outstanding dues. The European Union has agreed to fast-track the approval and disbursement of the second phase of the its macro-financial assistance and budget support program, worth EUR4 billion.The Suez Canal Economic Zone (SCZone) has launched the first phase of a new digital services platform for investors.The House gave the initial thumbs up to the entirety of the re-drafted Labor Act, with the bill's final approval by the legislative body penciled in for an upcoming session. The Customs Authority is preparing to launch a pilot operation of a new system for inspecting goods based on AI to combat customs evasion at ports, by creating a unified database for the prices of imported goods at all Egyptian ports.Tarek Sultan, Vice Chairman of Agility, a company specializing in supply chain services, infrastructure, and innovation, said his company intends to invest USD60 million to establish modern customs and logistics facilities in the Suez Canal Economic Zone.The German Development Bank (KfW Bank) intends to provide financing worth EUR52 million to the Ministry of Electricity to finance clean energy transition projects, sources at the German Embassy said.ORAS (FV: EGP425.00, OW) announced that its 50-50 joint venture with Técnicas Reunidas has signed an Engineering, Procurement, and Construction (EPC) contract to build the Qurayyah IPP Expansion Project, a large-scale 3 GW combined cycle gas-fired power plant in the Eastern Province in Saudi Arabia. The value of projects undertaken by Egyptian contractors in Iraq jumped to USD12 billion, according to the Chairman of the Egyptian Federation for Construction and Building Contractors. CLHO (FV: EGP9.00, OW) issued 4Q24 results. 4Q24 attributable net profit amounted to EGP191 million, down 8% QoQ but up 78% YoY. FY24 attributable net profit came in at EGP723 million (+73% YoY). CLHO is currently trading at FY25 multiples of P/E 15.2x and EV/EBITDA of 7.4x.ADIB AGM approved increasing issued and paid-in capital from EGP6 billion to EGP12 billion, an increase of EGP6 billion through distributing 1:1 bonus shares.DSCW reported 4Q24 bottom line of EGP80 million (-53.2% YoY, -75.0% QoQ). This brought FY24 bottom-line to EGP901 million (+101.1% YoY).DSCW BoD approved the establishment of Dice for Ready Made Garments in Morocco for the trade and distribution of ready-made clothing. Also, it proposed shares distribution for FY24 at a rate of half a share for each original share.Weekly Commodities Update

Egypt is expected to receive four LNG shipments by April, as the country looks to build up a strategic gas reserve.The Sovereign Fund of Egypt is conducting a comprehensive review of the privatization program that could see it expand the program to 40-60 state-run companies.Chinese textile manufacturer Jiangsu Guotai signed an agreement to set up a USD10 million readymade garment factory in the Qantara West Industrial Zone.The Tourism Support Fund approved extending the Aviation Incentive Program, which expires next April, to the summer season from May to October 2025. The CBE's net foreign assets rose to c. USD12.12 billion by the end of February, compared to c. USD12.02 billion the previous month, an increase of around USD99 million.SKPC Board of Directors proposed a cash dividend distribution of EGP0.75/share for FY24, implying a payout ratio of 26.8% and a dividend yield of 3.3%.ALCN (FV: EGP32.50, OW) issued neutral 2Q24/25 preliminary results. Bottom line amounted to EGP1.5 billion in 2Q24/25, down 21% QoQ but up 24.3% YoY. 1H24/25 bottom line came in at EGP3.4 billion (+55.9% YoY). ALCN is currently trading at FY24/25f P/E of 9.2x and EV/EBITDA of 8.1x.The Finance Ministry is expected to kick off the first phase of its planned desalination plants tenders, involving four plants with a combined capacity of 3 million cubic meters per day, in 2Q25. SCEM recorded strong FY24 results. Attributable net Income came in at EGP3,077.5 million in FY24, compared to a net loss of EGP121.4 million in FY23, noting that EGP1,517.4 million was attributed to the sale of an investment.Weekly Commodities Update

Oil Minister Karim Badawi met with CEO of US-based LNG solutions company Excelerate Energy Steven Kobos where they discussed leasing floating storage and regasification units to Egypt, sharing technical expertise, and LNG trade cooperation, according to a Ministry statement.A high-level investment delegation has received preliminary approval to visit Iraq, unnamed sources said. The Holding Company for Food Industries intends to list a number of its subsidiaries on the EGX in the coming period.Oil producer Capricorn Energy said it has reached a preliminary agreement with the EGPC to improve gas pricing to increase production, under terms aimed at boosting investment and production, along with updated commercial terms.British company BP seeks to increase gas production in Egypt by approximately 160 million cubic feet per day, from two wells in the King Mariout and Fayoum concession areas in the deep waters of the Mediterranean Sea, in 2H25.A government official said that the Ministry of Petroleum expects to receive four shipments of imported LNG during April. President Abdel Fattah El-Sisi approved a USD131 million loan agreement from the African Development Bank to help finance the first phase of the Private Sector Development and Economic Diversification Support Program, as part of the state budget support, according to a report published in the Official Gazette.SWDY reported steady 4Q24 results with attributable earnings coming in at EGP4.2 billion (+106% YoY, -13% QoQ). FY24 attributable earnings surged to EGP17.5 billion (+73% YoY). SWDY board of directors proposed a cash dividend distribution of EGP1.00/share, implying a payout ratio of 12.3% and a dividend yield of 1.2%. SWDY is trading at FY25e P/E of 9.7x and EV/EBITDA of 5.5x.EGAL signed a 25-year USD-denominated corporate Power Purchase Agreement with Scatec for a 1.1 GW solar plant and 200MWh battery energy storage system in Naga Hammadi backed by a sovereign guarantee. Scatec targets to reach financial close and start construction within the next 12 months. We expect the new plant to save around 10-15% of the company's electricity cost which could contribute to increasing our FV by EGP20.00/share to EGP175.00/share. We remind you that electricity represents more than 40% of production costs and EGAL's gross margin shrinks by 2-3% for every EGP0.25/kWh increase in electricity tariff, according to our calculations.CIEB lowered its proposed 2024 dividend payout to EGP3.20/share, representing 50.2% of distributable profits, down from a previously planned EGP3.82/share, or 60% of distributable profits, according to a Board decision. The payout remains subject to the general assembly's approval.OLFI is to distribute cash dividends of EGP2.00/share for FY24 on 27 March 2025, for shareholders on record on 24 March 2025, implying a DY of 10.4%.EFID's BoD is considering the approval of doubling the company's capital to EGP280 million. The proposed capital increase of EGP140 million will be distributed on 700 million shares and financed through the company's retained earnings of FY23. 

Monthly urban headline CPI inflation recorded 1.4% in February 2025 compared with 11.4% in February 2024 and 1.5% in January 2025. On an annual basis, urban headline CPI inflation recorded 12.8% in February 2025 compared with 24.0% in January 2025.Monthly core CPI inflation, computed by the CBE, recorded 1.6% in February 2025 compared with 13.2% in February 2024 and 1.7% in January 2025. On an annual basis, core CPI inflation recorded 10.0% in February 2025 compared with 22.6% in January 2025.The IMF Executive Board has completed the fourth review of Egypt's USD8 bn loan program, allowing for the disbursement of USD1.2 bn, Finance Minister Ahmed Kouchouk said.The government will triple allocations for economic support in next fiscal year's budget, including the funds going towards the export subsidy program and the Automotive Industry Development Program, the finance minister said.The second phase of the tax reforms will be rolled out next year, The Minister of Finance said. The first phase of the reforms was introduced in October and includes a simplified tax system for SMEs, a central clearing system, and measures to integrate the informal economy.The government is hoping to attract USD12 bn in FDI during the FY 2024-25, the General Authority for Investment and Freezones (GAFI) head Hossam Heiba said.S&P 500 futures traded around the flatline early Tuesday after concerns that a recession would hit the U.S. economy sparked a broad sell-off on Monday. ORHD reported stellar 4Q24 results, with net profit increasing 24.0% y/y and 9.0% q/q to EGP1.3 billion, bringing FY24 net profit up 9.9% y/y to EGP3.1 billion despite the 1Q24 net loss that had resulted from the FX loss driven by the March 2024 EGP devaluation. Given ORHD's stellar sales performance and strong operations across all revenue segments, we maintain our Overweight recommendation of ORHD based on our FV of EGP34.74/share and reiterate ORHD as one of our top picks.RMDA issued positive 4Q24 results with net profit after taxes amounted to EGP158 million, exceeding our expected figure of EGP132 million, and up 31% QoQ and 181% YoY. 2024 bottom line came in at EGP402 million that is up by 59% YoY. RMDA is currently trading at FY25 multiples of P/E 10.7x.EFID BoD approved distributing cash dividends of EGP1.14/share for FY24, to be distributed on two equal installments. This implies a payout ratio of 49% and dividend yield of 4.1%.Emirates NBD is currently conducting its due diligence of the state-owned lender as the Dubai-listed lender looks to acquire an undisclosed stake in the state-owned bank. The government assigned HRHO to lead the IPO of Silo Foods for food industries. CCAP has requested 15k feddans for an agricultural and agro-industrial expansion project, focusing on herbs and aromatic plants, according to the Industry Ministry. The company will inspect available land in Sahl Baraka and Abu Zaabal. CCAP also requested the allocation of mining consessions and quarry leases to secure the supply of essential raw materials, especially talc and kaolin. Al Organi Group's ODI to acquire a 26.25% stake in ATQA in a EGP1.9 billion transaction (EGP6/share). The acquisition, subject to regulatory approvals and due diligence, values Ataqa at EGP7.2 billion, 6% lower than current market cap.Six Egyptian construction companies are evaluating the potential execution of new infrastructure projects in Libya, with an estimated contract value of EGP100 billion. 

Egypt has reportedly set a pricing and payment mechanism for securing LNG supply agreements for the summer months.Chinese firm Di Seta has begun construction work on a USD40 million ready-made garments factory in the Qantara West Industrial Zone.Egypt's merchandise exports reached USD4.3 billion during January 2025, compared to USD3.3 billion in the same month of 2024, a growth of 30% YoY.The House of Representatives approved granting workers an annual bonus of no less than 3% of the insured salary within the new draft labor law instead of 7% of the basic salary.Minister of Finance said that tax revenue jumped 38% YoY in 1H FY2024/25 to EGP913.4 billion.MASR's (FV: EGP8.11, OW) net profit in 4Q24 decreased 48.8% y/y and 62.6% q/q to EGP397.6 million, taking FY24 net profit up 36.9% y/y to EGP2.9 billion. The Board of Directors proposed the distribution of cash dividends of EGP0.25/share, implying a payout ratio of 18.3% and dividend yield of 6.0%. The Board also approved purchasing 85.4 million treasury shares. EFID reported 4Q24 financial results. Net profit reached EGP407 million (+0.9% YoY, +1.4% QoQ). FY24 bottom line came in flat at EGP1,634 million. EFID is currently trading at FY25 P/E of 7.6x and EV/EBITDA of 5.4x.MFPC released FY24 financial indicators. Net profit soared by 153% YoY to EGP15.1 billion in FY24. The company attributed the increase to an EGP7.1 billion rise in FX translation differences from the year before in addition to a EGP1.4 billion increase in interest revenue. MFPC is currently trading at 2025f PE of 6.9x and EV/EBITDA of 6.1x.The FRA gave the nod for EKHO to proceed in its stock dividend distribution to shareholders at 5% of the issued and paid-up capital to reach USD295.81 million, with an increase of USD14.09 million distributed over 56.34 million shares at par value of USD0.25/share (1:20 ratio). 

The Prime Minister announced that an oil and gas field was discovered in the King Mariout area, called Fayoum 5.Egypt's liquefied in facilities will start receiving 400 million cubic feet per day (mcf/d) from Cyprus' Cronos gas field starting mid-2027 and another 500 mcfd of gas from the country's Aphrodite field by 2030, a senior government official said.Cabinet approved a draft decision put forth by Prime Minister Moustafa Madbouly defining the responsibilities of the Industry Ministry and its affiliated entities.Cabinet approved the establishment of a green industrial zone for petrochemical and green hydrogen production in the Gulf of Suez's Ras Shukeir. It also gave an initial nod for the Transport Ministry to proceed with contracts for a green hydrogen and green ammonia project in Ras Shukeir in partnership with a consortium of international companies, the Red Sea Ports Authority, and the New and Renewable Energy Authority.The Finance Ministry allocated EGP1 billion in the current fiscal year's budget to fund the Automotive Industry Development Program (AIDP) and attract investments in car manufacturing.Saudi Arabia's Cabinet greenlit the Egypt-Saudi Agreement on Promotion and Mutual Protection of Investments that is expected to help protect Saudi investors as they ramp up investment in Egypt. Planning and International Cooperation Minister Rania Al Mashat said that the government expects growth to accelerate to 4.5% in FY2025-26, up from a 4.0% projection for FY2024-25.The Financial Regulatory Authority bumped up the limit on microinsurance coverage to EGP312.5k from EGP250k in a bid to safeguard low-income individuals and bolster their ability to invest in small businesses. The Environment and Finance Ministries are working to boost investments in waste-to-energy (WtE) projects by amending laws regulating public contracts and increasing the feed-in tariff rate.The number of factories in the Suez Canal Economic Zone (SCZone) has doubled to 130 over the past three years, with another 120 under construction.DOMT reported 4Q24 bottom line of EGP143.3 million (+41.1% YoY, -14.1% QoQ). This brought FY24 bottom line to EGP501 million (+10.3% YoY). DOMT's BoD proposed cash dividend distribution of EGP0.85/share for FY24, implying payout ratio of 47.9% and dividend yield of 3.1%. DOMT is currently trading at FY25 P/E of 9.0x.SWDY will deliver 50% of the engineering works and supplies needed for the EUR700 million combined cycle power plant it is building in Hungary.

*Key news articles for today* Arab leaders endorsed Egypt's USD53 bn reconstruction plan for Gaza during yesterday's emergency Arab League summit held in Cairo. Net foreign reserves rose to USD47.4 bn at the end of February 2025, marking a USD129 mn increase from January.Chinese companies are expected to invest USD2-3 bn in moving production to Egypt, particularly the Suez Canal Economic Zone (SCZone), as China looks to maintain export access to global markets amid trade pressures from the US.OPEC+ decided to proceed with an earlier decision to gradually increase oil production from April in a move that will see it unwind long-standing output cuts.An official revealed that the government has excluded Cairo International Airport from the list of airports that will be offered to the private sector for development, management and operation, and has decided to start with a small airport model, explaining that the International Finance Corporation will finish preparing the strategy for the airports' within 3 months.Egypt's trade deficit widened in December 2024 to record USD4.15 billion, up from USD3.67 billion in December 2023, on a faster pace of growth in imports compared to exports.SUGR reported 4Q24 financial results with bottom-line of EGP290 million (+55% YoY, +8.1x QoQ). This brings FY24 bottom-line to EGP1,262 million (-21% YoY). SUGR is currently trading at FY25 P/E of 4.9x.TAQA posted a 26% YoY growth in FY24 consolidated net profit to record EGP702.0 million. Revenues increased by 40% YoY to EGP18.9 billion in FY24.EFIH (FV: EGP28.28, OW) announced that it is participating in the launch of Egypt's first onshore private equity fund, C3 Capital Fund 1, the first-ever Private Investment in Public Equity (PIPE) fund in Egypt. The final close of the fund is expected to be EGP3.0 billion. Pharma sales value increased by 54.7% YoY in the first month 2025 to record EGP21.5 bn, while sales volume recorded a modest 6.5% YoY increase. 

The General Authority for Investment and Freezones is pitching a USD17 billion investment to build the world's largest green hydrogen plant in South Sinai. Egypt and Greece are set to begin implementing their 3 GW electricity interconnector (Gregy) before the end of 2H25, with the project set to receive a grant and concessional financing totaling EUR1 billion. Eight Turkish apparel and textile manufacturers are in talks to enter the Egyptian market this year.The government has approved a proposal submitted by the National Organization for Social Insurance to swap part of its debts owed to companies in the public and private business sectors for assets, including land plots and buildings. The General Authority of the Suez Canal Economic Zone signed two contracts for two new projects in the Qantara West Industrial Zone, with a total investment of USD28 million in the fields of textile manufacturing, printing, and dyeing.PHAR issued 4Q24 results.Net profit came in at EGP112 million, down 45.5% QoQ and 46.1% YoY. 2024 bottom line registered EGP1.097 billion, higher by 29% YoY. PHAR is currently trading at FY25 multiples of P/E of 5.7x and EV/EBITDA of 4.2x.LCSW's (FV: EGP37.00, OW) attributable net profit surged 99% to EGP890.3 million, reflecting improved operational efficiency and strong revenue growth. Over the quarter, net profit declined 69% to EGP34.6 million, reflecting weaker profitability in the quarter.GBCO's BoD proposed cash dividend distribution of EGP0.35/share for FY24. This implies payout ratio of 13.0% and dividend yield of 2.0%.HRHO raised EGP463 million in ValU's first securitization bond issuance in 2025.CICH and Compass Capital officially launched their C3 capital private equity fund. Weekly Commodities Update

The IMF is set to sign off on Egypt's fourth review of its USD8 billion loan program when the Fund's Executive Board meets on Monday, March 10. Indian plastic packaging manufacturer Flex PET opened its polyethylene terephthalate resin manufacturing plant with investments of USD175 million.Chinese textile manufacturer Zhejiang Cady Industry inaugurated its new USD100 million textile and ready-made garments factory in the Teda industrial zone in Ain Sokhna. French multinational Air Liquide officially opened its EUR80 million medical and industrial gas production factory in the Sokhna Industrial Zone.CBoard, a member of Saudi construction materials manufacturer conglomerate Beam, inaugurated the expansion of a cement board and wall manufacturing facility. India's Abdos opened its USD30 million cosmetics manufacturing plant. The state is set to spend some EGP170 billion on wage and pension hikes during FY 2025-26, according to a Finance Ministry statement. The net foreign assets of the Egyptian banking sector, including the CBE, rose by USD3.5 billion in January to USD8.7 billion. The European Bank for Reconstruction and Development (EBRD) has lowered Egypt's growth forecast for 2025 to 4.2%, down 0.3 percentage points from its previous estimates in September.Egypt has no plans to alter its tax regime in the near future, a senior government official said.The Finance Ministry has secured a USD500 million loan from Deutsche Bank and Bank ABC.EU Commissioner for the Mediterranean Dubravka Šuica is in Egypt today for high-level discussions on the New Pact for the Mediterranean and to ink a EUR90 million project, dubbed Egypt Food Resilience, with the government.The Sovereign Fund of Egypt has formed a committee to list all government companies for the purpose of adding them to the fund during the coming period.The government is reportedly considering imposing taxes on Egyptian companies that generate revenues from abroad, while avoiding double taxation.FWRY reported 4Q24 results. Net profit came in at EGP500 million (+119% YoY, +4.7% QoQ). In 2024, net profit recorded EGP1.606 billion (+125% YoY). FWRY is currently trading at 2025f P/E of 13.1x.ETEL's BoD proposed distributing cash dividends of EGP1.50/share (subject to the general assembly's approval), implying a DPO of 25.4% and a DY of 3.9%.GBCO reported attributable net profit recorded EGP1,135 million this quarter (+82.9% YoY, +52.0% QoQ). FY24 bottom line grew by 54.9% YoY to reach EGP2,928 million. GBCO is currently trading at a FY25 P/E of 4.3x.ORWE reported attributable net profit of EGP329 million in 4Q24 (-25.8% YoY, -46.5% QoQ), bringing FY24 bottom line to EGP2,192 million (+130.3% YoY). ORWE's BoD approved cash dividends distribution of EGP1.60/share for FY24, implying a dividend yield of 6.5%. ORWE is currently trading at a FY25 P/E of 4.1x.POUL attributable net profit of EGP584 million in 4Q24, an increase of 24.0x YoY and a drop of 14.3% QoQ. This brought FY24 attributable net profit to EGP2,387 million (+108.0% YoY). POUL is currently trading at FY25 P/E of 4.3x. ESRS repurchased EGP21.6 billion worth of shares from shareholders opposed to the group's voluntary EGX delisting. EMFD reported an increase of 177.5% y/y and 87.5% q/q in 4Q24 net profit to EGP5.1 billion, bringing FY24 net profit up 126.1% y/y to EGP15.4 billion.CICH 4Q24 net attributable profits post minority recorded EGP616.8 million (+79.4% q/q, +109.9% y/y), bringing FY24 bottom line to EGP2.2 billion (+114.6% y/y). CICH BoD proposed a cash dividend distribution of EGP0.70/share for FY24, implying a dividend yield of 11%. CICH is currently trading at P/B25 of 0.7x and P/E25 of 2.8x.

The Madbouly government is aiming to transfer the administration of all state-owned companies to the Sovereign Fund of Egypt (SFE) in order to boost their returns, Investment Minister Hassan El Khatib said.Finance Minister Ahmed Kouchouk shared the details of the government's social protection package of wage and pension hikes and support to Egypt's most vulnerable. Some measures will take effect starting the new fiscal year in July and others will be implemented between March and July.The International Finance Corporation (IFC) is expected to reach an agreement with the Egyptian government on its privatization plan for the management of 11 airports by mid-March, the Civil Aviation Minister said. Egypt's government debt declined to 77.4% of GDP by the end of 2024, down from 78.2% in September, marking its lowest level since March 2020, according to data from the Institute of International Finance seen by Al Arabiya.Kuwaiti Prime Minister Sheikh Ahmed Al Sabah will visit soon to announce new joint investment projects, Prime Minister Moustafa Madbouly said.Investment Minister Hassan El Khatib is expected to finalize a trade agreement with Morocco today to resolve an export standoff that has left 150 Egyptian containers, loaded with ceramics, food products, and insulation materials, stranded at Moroccan ports for two weeks.ETEL reported 4Q24 results. Net profit came in at EGP1.46 billion in 4Q24 (-43% YoY, -31% QoQ), bringing 2024 attributable net profit to EGP10.1 billion (-13.8% YoY). ETEL is currently trading at 2025f P/E of 5.3x.EFIH reported solid 4Q24 results. Net attributable profit recorded EGP382 million (+247% YoY, -39.4% QoQ). In 2024, net attributable profit stood at EGP1.77 billion (+41.2% YoY).  EFIH BoD proposed a cash dividend distribution of EGP0.173/share for 2H24, implying a DY of 1% and a DPO of 39.5% (out of 2H24 net attributable profit). Additionally, BoD proposed distributing 1 bonus share for each 2 original shares (a rate of 0.5 share for each original share), financed from internal sources. EFIH is currently trading at 2025f P/E of 17.3x.FWRY announced strategic investments worth EGP80 million in three prominent Egyptian technology companies, which are Dirac Systems, Virtual CFO, and Code Zone, acquiring equity stakes of 51.0%, 56.6%, and 51.0%, respectively. CNFN 4Q24 bottom line post minority recorded EGP247 million compared (+11% q/q, -3% y/y). The Group's FY24 bottom line post minority recorded EGP657.7 million compared to EGP692.2 million in FY23 (-5.0% y/y). The company is trading at multiples of 1.1x P/B25 and 5.3x P/E25.CNFN's CEO, Said Zater has stepped down as managing director and is starting a new role as the Group's board advisor.SWDY has been awarded an engineering, procurement, and construction contract for a combined cycle power plant in Hungary, by MVM Matra Energia, a subsidiary of Hungarian Electric Company. Chemical Industries Holding decided not to offer Delta Fertilizers to a strategic investor, despite interest from five local and Gulf firms, according to local media. PHDC approved establishing a subsidiary in Abu Dhabi.

*Key news articles for today* The Finance Ministry is set to reduce penalties for late tax payments by up to 90% as part of its larger tax relief package, in a move that aims to resolve thousands of disputes resulting from delayed tax return submissions or filing returns without paying the due tax. The countdown to the Grand Egyptian Museum's official opening is on 3 July launch after President Abdel Fattah El Sisi approved the date.The government sent a high-level delegation to Rabat earlier this week to push for the removal of recent restrictions that have left Egyptian exports piling in Morocco's ports for two weeks.Egypt and the UAE kicked off talks for a Comprehensive Economic Partnership Agreement, to strengthen trade, investment, industry, energy, and infrastructure collaboration.The government is negotiating with the countries of origin to import wheat under the equal deals system, in an attempt to secure its grain stock and relieve pressure on the dollar at present.The government paid about EGP6 billion in compensation for the Ras El-Hikma area, as part of the compensation and removal plan for the area.The House of Representatives approved in principle the draft labor law submitted by the government, during a session while discussing the report of the Manpower Committee on the draft.The government is studying amending the real estate tax law, and the Real Estate Tax Authority has submitted a proposal to raise the tax exemption limit for residential units, which currently stands at about EGP2 million, in light of rising real estate prices and increasing inflation rates. A source said that the limit might be raised to EGP3 - 4 million.Eroglu Garment, a subsidiary of Turkish clothing manufacturer Eroglu Holding, is investing some USD120 mn in a new integrated garment factory in the Qantara West Industrial Zone.UAE's Dana Gas has set a plan to invest around USD100 million in Egypt, including drilling 11 wells over the next two years, according to the company's head of investor relations.ISPH issued positive 4Q24 results where bottom line amounted to EGP208 million that is up by 12.5% QoQ and 4.3x YoY. On an full year basis, 2024 bottom line came in at EGP615 million that is up by 1.9x YoY. ISPH in trading at 2025 multiples of P/E of 8.9x.EGCH released 2Q24/25 unaudited financial indicators posting a significantly enhanced bottom line of EGP772 million, compared to EGP163 million in comparative quarter and only EGP38 million in previous quarter, which included EGP173 million in real estate revaluation gains. EGCH is currently trading at a 2024/2025e PE of 29.1x.United Bank (UBEE) 2024 net income after tax jumped 63% y/y, to record EGP 2.8 bn.CNFN has formed a strategic partnership with Auto Mobility, the official Geely agent, to offer full insurance solutions tailored for Geely vehicle owners. Egypt's financial inclusion rate, the percentage of citizens above the age of 15 who hold bank accounts, mobile wallets, or prepaid cards, jumped to 74.8% by the end of 2024 up from 71% at the end of 2023.OCDI Board approved merging seven of the company's subsidiaries, with authorized capital of the company post-merger amounting to EGP25.0 billion and paid-in capital amounting to EGP5.2 billion distributed on 1.3 billion shares. 

Did we just experience the defining moment within the better-for-you, functional lifestyle products movement? Celsius Holdings (NASDAQ: CELH) had quarterly revenue of $332.2 million, which was down 4% YoY. And while that now marks the second straight quarter of YoY revenues losses…sequential QoQ revenue activity increased sharply at 25%. According to Circana last 52-week data, CELSIUS accounted for 30.3% of all energy drink category growth YoY. In addition, Celsius sustained its market share of 11.8% and is securely the third-largest energy drink brand in the category. And I don't want gloss over this accomplishment…as CELSIUS became the first brand in over a decade not named Red Bull or Monster Energy that was able to capture more than a 10% share in the U.S. energy drinks market. Celsius energy drinks has seen massive growth in convenience stores, foodservice (e.g. fast food restaurants), mass retailers like Walmart, the club channel in retailers like Costco, and the Amazon marketplace. Additionally, the early international market development groundwork starting to formalize with CELSIUS extending its relationship with Suntory Beverage & Food and also the first major international market expansion under the PepsiCo umbrella (i.e. Canada). It's my opinion that international expansion presents significant opportunity for incremental growth over the next three to five years. With Celsius at basically full distribution now…the TDP growth will have to come from increased items carried per store. Going forward, Celsius will increase items per store through a combination of product strategies like flavor, format, pack size, and variant expansion. Additionally, CELISUS will continue scaling up the new Essentials lineup that has exceeded the company's expectations. Moreover, they will seek more store placements like leveraging cold display activity in Celsius-branded coolers. But the huge breaking news that accompanied this earnings report was CELSIUS entering into a definitive agreement to acquire Alani Nutrition for a net purchase price of $1.65 billion, comprising a mix of cash and stock. In 2024, Alani Nu became the fourth-largest U.S. energy drink brand…reaching more than $800 million in retail sales across tracked channels…growing an astonishing 63% YoY. Moreover, the combined brand platform of CELSIUS and Alani Nu energy drinks would be considered the fastest growing energy drink brand portfolio of the top 10 categorical competitors...generating slightly below $2 billion in revenue and more than $3.5 billion in tracked channel retail sales over the full-year 2024 period, and would have 16% category share (trailing only the Monster Energy combined brand platform and Red Bull). But I'll also analyze a collection of questions that have huge energy drinks market implications like why did CELSIUS acquire Alani Nu, is there cannibalization risk, will PepsiCo distribute Alani Nu now, CELSIUS product category expansion, and will this set off more market consolidation and another game of independent DSD musical chairs.

The Finance Ministry is gearing up to complete its first sovereign sukuk issuance of the year within the next month, with the issuance set to be around EGP2-3 billion.The Cabinet approved the launch of a EGP30 billion financing initiative to support and finance priority industrial sectors. UAE's AMEA Power signed an agreement with the Egyptian Electricity Transmission Company to develop two battery energy storage systems (BESS) with a combined capacity of 1.5 GWh.Prime Minister met with Kuwait's Prime Minister Sheikh Ahmed Al Sabah during his official visit to the Gulf nation, where the two leaders discussed boosting relations between the two countries across various sectors. The Central Bank of Egypt sold EGP89.8 billion in t-bills between Thursday and yesterday at average yields between 25.5-29.2%, according to CBE data.Forty-seven ships changed course this month to pass through the Suez Canal instead of sailing around the Cape of Good Hope, Suez Canal Authority head Osama Rabie said.Egypt intends to buy electricity produced from wind energy projects which will be implemented by Saudi Arabia's ACWA Power, south of Hurghada, at a price of 2.4 cents KWH, which will be partially paid in EGP and the bigger bulk in USD, according to a government official.Government's revenues from Suez Canal declined in 2024 to EGP146.4 billion, as compared to a target of EGP168.45 billion in the state budget. The EGX and the Financial Regulatory Authority (FRA) are mulling a regulatory update to either scrap or revise the duration of the lock-up period on the ownership of substantial shareholders post-IPO. EKHO released 4Q24 consolidated financial results. Net profit dropped 8% YoY (+14% QoQ) to USD39 million. The BoD proposed a cash dividend distribution of USD0.035/share for FY24. The Board also proposed the distribution of one bonus share for each 20 original shares. EKHO is currently trading at 2025f PE of 5.2x.EKHO to invest around USD150-200 million in the coming 18 months. The Egyptian Refining Company (ERC) intends to conduct a major overhaul of the Mostorod refinery with investments exceeding USD100 million. ABUK tapped board member and former transport minister Hany Dahy to head a new steering committee tasked with overseeing the company's business operations. FWRY acquired a 56% stake in Virtual CFO, a financial services and accounting firm catering to SMEs and startups.MCQE reported solid financial results for 4Q24. Attributable bottom line came in at an impressive EGP176 million (+708% QoQ, +117% YoY), bringing FY24 attributable bottom line to EGP238 million (+151% YoY). The BoD proposed a cash dividend distribution of EGP1.00/share for FY24. MCQE is trading at a FY25 P/E of 18.2x.EXPA 4Q24 bottom line post minority interest recorded EGP1,265 million (-19% q/q, +15% y/y), bringing FY24 net profit to EGP5,203 million (+54% y/y and 7% higher than Al Ahly Pharos estimate of EGP4,879 million). BoD proposed the distribution of 0.4 bonus share to every original share. EXPA is currently trading at 3.3x P/E 2025 and 0.7x P/B 2025.QNBE's general assembly approved paying out a cash dividend of EGP1.50/share out of 2024 earnings.OLFI's general assembly approved cash dividend distribution of EGP2.00/ share for FY24, implying payout ratio of 80% and dividend yield of 10.7%.According to local media, JUFO signed a financing agreement worth more than EGP1.0 billion with Emirates NBD Egypt.

The government is working on a number of ways of facilitating customs including electronically linking data with the Egyptian Tax Authority to expedite data verifications, improving issues related to duty drawback, temporary admission, and pre-release procedures for shipments.Adnoc Distribution plans to expand its aviation fuel services in Egypt beyond its existing presence at Cairo and Marsa Allam airports.The Oil Ministry signed an MoU with Greece's Environment and Energy Ministry to collaborate on carbon capture, storage, and utilization. Egypt will ink an agreement to rent a floating regasification unit from Cyprus next month.Twenty German companies are planning to invest in Egypt's manufacturing sector.Saudi energy company ACWA Power has secured a power purchase agreement (PPA) with the state-run Egyptian Electricity Transmission Company (EETC) for a major wind energy project in Egypt's south Hurghada.Minister of Labor revealed that the government aims to reduce the unemployment rate to 5.7% in 2025, compared to the previous rate of 6.4%.The FRA revised regulations related to SPACs, allowing them to merge, swap shares, or acquire credit balances of their target company. COMI (FV: EGP135.00, OW) 4Q24 net profit post-minority interest recorded EGP12,848 million (-13% q/q, +78% y/y), bringing FY24 bottom line to a strong EGP55,196 million (+86% y/y). The stock is currently trading at P/E25 of 4.1x and P/B25 of 1.3x.BTFH has completed the acquisition of SODIC Securitization Company for EGP8.6 million.EGAL reported steady KPIs for 2Q24/25. Net profit after tax came in at EGP3.1 billion in 2Q24/25 (+73% YoY, -26% QoQ). 1H24/25 net profit after tax surged 114% YoY to EGP7.4 billion. EGAL is currently trading at FY24/25e P/E of 5.5x and EV/EBITDA of 3.1x.EGX is considering adopting a real-time settlement mechanism for the voluntary delisting of ESRS shares where transaction settlement and fund disbursement take place immediately upon execution with the opening of the OPR.FWRY, Banque Misr, and EBC launched a new cash in and out service for e-wallets.ETEL and Orange Egypt signed transmission and infrastructure services. 

IMF boss confirmed that the Fund will continue to support the Egyptian economy as it carries out reforms. The government will pay out USD1 billion of arrears owed to foreign energy companies early next month.The Emirati company Dana Gas will resume its drilling activities in Egypt starting next March, after receiving part of its overdue dues from the Egyptian Petroleum Authority.BP kicked off production from the second development phase of its Raven natural gas field in its North Alexandria offshore concession. The Arab Organization for Industrialization is in talks with Emirati investors to set up three new factories in Egypt. The planned facilities will specialize in car tires, MDF wood from palm tree fronds, and advanced defense manufacturing.A number of tax facilities regarding SMEs, simplifying tax procedures, and settling disputes will take effect in March.EAST released outstanding 1H24/25 financial results. 1H24/25 net profit recorded EGP5,382 million (+85.8% YoY). EAST is currently trading at FY24/25f P/E of 6.8x and EV/EBITDA of 6.1x.AMOC released 2Q24/25 full financial results. Net profit dropped 35% YoY (-68% QoQ) to EGP148 million. Net profit declined 5% YoY to EGP610 million in 1H24/25. AMOC is currently trading at a FY24/25e PE of 4.3x and EV/EBITDA of 2.1x.MASR achieved strong FY24 sales of EGP46.1 billion, up 54.2% y/y, implying 4Q24 sales of EGP13.4 billion, down 10.8% y/y and up 13.7% q/q.EGAL is studying establishing a new 600k ton aluminum plant with no further details announced. SWDY's Chairman expects the company to start supplying building materials to Ras Al Hekma project in North Coast in two months. SWDY is also eyeing an entrance into Brazil and India as part of its expansion plan.CLHO announced the execution of an agreement to extend Cleopatra October (Haven) Hospital through a Build-to-Suit lease to add approximately 200 beds to the existing hospital. The expansion is expected to increase the hospital's total capacity to up to 300 beds by 2026. CIRA Education will submit a mandatory tender offer (MTO) to up its stake in Cairo for Educational services (CAED) to up to 90% from the current 69.4%. CIRA is looking to acquirean additional 20.6% of its subsidiary at an initial share price of EGP30.Weekly Commodities Update 

Cypriot President Nikos Christodoulides reconfirmed that he will sign “the first agreements for the commercialization of natural gas from deposits in the Republic of Cyprus” tomorrow. Egypt's unemployment rate fell to 6.4% in 4Q 2024, down 0.3 percentage points from the previous quarter, according to data from state statistics agency Capmas.Efforts to speed up customs clearance got the cabinet thumbs up, with a plan from the finance and investment ministries to improve the process of exporting and importing goods being passed in its bid to cut customs clearance times down from eight days to just two.A power purchase agreement between Saudi Arabia's ACWA Power and the Egyptian Electricity Transmission Company was approved to allow energy supplies from wind energy projects totaling 2 GW to be fed into the national grid.A plan to simplify private healthcare regulation detailed in a draft law was passed, which is designed to make it easier to license new private healthcare facilities, disentangle administration from ownership, and greenlight foreign players wanting to open up shop in the country.Stamp tax amendments set to replace the planned capital gains tax will be issued within days, Deputy Finance Minister for Tax Policies Sherif El Kilani said. The government intends to reformulate the criteria for granting the golden license, in addition to discussing the determinants and controls for establishing public free zones, in order to govern the procedures related to all industrial activities and projects, Minister Kamel EL-wazir said.ABUK released 2Q24/25 full financial statements with net profit surging to EGP3.2 billion in 2Q24/25 (+59% YoY, +146% QoQ), with a NPM of 47.7% in 2Q24/25 (+1pps YoY, +12pps QoQ), further supported by revenue growth as well as EGP897.4 million of forex gains recorded in the quarter. This brings 1H24/25 bottom line to EGP4.4 billion (+12% YoY) with a NPM of 43.4% (-3pps YoY). ABUK is currently trading at FY24/25f PE of 4.8x.CANA 4Q24 bottom line recorded a strong EGP2,559 million (+95% q/q, +173% y/y), bringing FY24 net profit to EGP5,681 million (+148% y/y, 49% higher than Al Ahly Pharos Estimates). We reiterate our Overweight recommendation of CANA on an updated FV of EGP35.00/share up from EGP 23.08/share. CANA is currently trading at 2.1x P/E 2025 and 0.4x P/B 2025. BoD proposed distribution of 0.54 bonus share for every outstanding share. BTFH aims to launch an app specializing in data analytics in 2025.EMFD inked a strategic partnership agreement with Midar Investment to set up the EGP100 bn New Mivida residential project in New Cairo. 

The government is currently working on preparing the budget for FY 2025-26, all while preparing a comprehensive three-year budget with a financial ceiling that can only be exceeded in exceptional cases, one of the sources said. Government entities will also submit another budget covering FY 2026-27 to FY 2029-30. Ministries will be given cabinet-approved financial ceilings that can't be exceeded.The Public Government Budget is set to rise to somewhere in the vicinity of EGP8 tn in the fiscal year 2025-2026, up from EGP6.6 tn in the current fiscal year, as the government looks to incorporate additional state economic bodies' budgets into the budget, a government source told local press.The budget pencils in growth of around 5-5.5%, reduced public debt, and a primary surplus amounting to approximately 4% of GDP.The government is also working on reducing the amount of funds allocated for fuel subsidies from the current fiscal year's EGP150 bn.The government is planning to further cut down public investments and is set to, instead, rely on self-financing through various entities and limit spending to highly urgent projects or those already nearing completion, the sources said.The Finance Ministry is looking to launch a new public debt policy document by the end of March.Phase two of the new capital's development will be offered to a French investment consortium in March.The Minister of Finance revealed the features of the proposed package of reforms of the customs system through 19 proceduresزCIEB released 4Q24 consolidated bottom line of EGP1,944 million (+4% q/q, +44% y/y ), bringing FY24 bottom line to EGP8,030 million (+55% y/y and perfectly in line with Al Ahly Pharos estimate of EGP8,039 million). CIEB is currently trading at P/E25 of 3.1x (based on bottom line post minority and appropriations) and P/B25 of 0.9x. CIEB's BoD proposed cash dividend distribution of EGP3.82/share, implying a payout ratio of 60% and DY of 20%, pending the CBE and AGM approvals.CCAP reported a consolidated net profit after minority interest of EGP114.5 million in 3Q24 (-94% YoY, -108% QoQ). The company is currently trading at FY25e P/E of 1.4x and EV/EBITDA of 4.8x.Minister of Petroleum appointed Maged Mostafa El Kordy as acting chairman and managing director for AMOC. State-owned El Nasr for Fertilizers & Chemical Industries (Semadco) is gearing up to set up a wind farm and solar power stations with a combined capacity of 500 MW to power its new green ammonia factory in Suez, according to local media.FWRY has acquired a majority stake in Code Zone, a manager of local hospitals and medical institutions, as part of its strategy to invest in complementary startups. The company is also in negotiations with Gulf firms to expand its presence in Saudi Arabia and the UAE. In the first quarter, Fawry plans to launch new investment services focused on the stock market and gold, including various investment funds. Additionally, the company is considering applying for a digital bank license and has introduced Fawry Business, a platform designed to assist local companies with digital transformation, offering payment management, e-receipts, SME loans, and salary management solutions.EFIH and its sister company eHealth will work together to link the Universal Health Insurance System with social protection systems under an MoU they inked with the Social Solidarity Ministry and the Universal Health Insurance Authority (UHIA).ARCC signed a EUR25 million loan agreement with the European Bank for Reconstruction and Development (EBRD) to fund energy efficiency upgrades and expand alternative fuel use. 

Kuwait's Ali Alghanim & Sons Group is looking into setting up an insulin factory in Egypt in partnership with foreign companies as part of its expansion in Egypt. The group is also exploring the development of a tourist resort overlooking the Red Sea.The government holding intensive discussions to resolve the issue of the long-awaited capital gains tax on EGX transactions, and even look for alternatives, a government source said. Egypt has reportedly signed agreements with Shell and Total Energies to purchase a total of 60 LNG shipments in 2025 for around USD3 bn, an unnamed government said.Planning and International Cooperation Minister Rania Al Mashat touted the Suez Canal Economic Zone (SCZone) as a potential hub for Ukrainian grain storage and re-export to Africa during a high-level meeting in Cairo with Ukrainian Agrarian Policy and Food Minister, according to a ministry statement. She also invited international partners to visit the area to explore its potential as a logistics and manufacturing hub.The Liberian crude oil tanker Chrysalis passed through the Suez Canal yesterday for the first time since being targeted in a Houthi attack last July, according to a statement from the Suez Canal Authority. The CBE sold USD1.06 billion in T-bills with a 364-day maturity period, at an average yield of 4.25%.The CEO of the International Islamic Trade Finance Corporation announced that a program was signed with the Egyptian government to provide financing facilities to support petroleum products and food security worth USD1.5 billion, adding that the financing will be allocated primarily to the EGPC and GASC.EFIC released 4Q24 unaudited standalone results posting a 169% YoY (+258% QoQ) to EGP950.5 million, bringing FY24 net profit to EGP1.5 billion, a 161% YoY.Raya Auto plans to establish a USD 50 mn EV assembly plant in Egypt next year, CEO of the Raya Holding automotive unit Mohamed El Naggar told Asharq Business. Head of the Egyptian Drug Authority stated their strategic plan for building inventories for six months to the most important medicine's active ingredients, as a part of solving the scarcity crisis in the Egyptian drug market. Head of suez canal authority Ossama Rabie declared the accomplishment of the canal duplication project and its readiness for operations. Rabie added that the authority issued the navigational charts for the canal.

The House approved a new simplified tax system for SMEs that proposed that businesses with an annual turnover of up to EGP15 million will pay a simple flat tax that covers income tax, value-added tax, duty tax, and others. The Economic Committee approved a framework agreement with the African Development Bank to phase out LIBOR as a reference interest rate.French shipping line CMA CGM will continue to avoid the Suez Canal and use the Cape of Good Hope passage despite the ceasefire in Gaza. The shipping giant sees the Gaza ceasefire as “a positive but fragile sign for the global shipping and logistics industry.”The Finance Ministry is providing EGP20 billion to EgyptAir Holding Company to help expand the state-owned airline's fleet and reduce its debts.Foreign investments in treasury bills worth about USD24 billion are maturing next March, according to media reports. These investments entered the market at the same time last year following the unification of the EGP rate, which raised foreign investments in Egyptian debt instruments to about USD33 billion by the end of March 2024.The Egyptian Stock Exchange is expected to receive new investments from private insurance funds - under the amendments made by the FRA. According to estimates by an official at the Authority, these investments will not be less than EGP6 - 7.5 billion and may reach between EGP18 - 22.5 billion at their maximum if they invest the ceiling of the 15% limit allowed in the rules.AMOC release 2Q24/25 financial indicators. Net profit dropped 27% YoY (-61% QoQ) to EGP180 million. During 1H24/25, net profit declined 3% YoY to EGP642 million. AMOC is currently trading at a FY24/25e PE of 4.6x and EV/EBITDA of 2.3x.The consortium of an engineering and construction company of SWDY was awarded a 500-650 MW combined cycle power plant project of a subsidiary of the Hungarian Electricity Co. (MVM). BP and the Metallurgical Industries Holding inked a five-year agreement to restart production in the Egyptian Anode Blocks Company after a two-year production hiatus. Sustainable Capital Africa has sold its entire 9.67% stake in CIRA for a total of EGP873.3 million. The transaction was executed at an average price of EGP15.5/share.Weekly Commodities Update

Prime Minister Madbouly announced the formation of six advisory committees that will ensure continued and deepened communication between policymakers and the private sector as the state pushes its reform drive into the new year. French energy company TotalEnergies and Italian energy giant Eni and the Madbouly government will next month ink agreements to transport Cypriot gas to Egypt to be liquefied and exported. AD Ports inked an MoU with the Transport Ministry to explore joint development and operations of a 1.1 sq km integrated logistics park in Alexandria Port.Egypt plans to host a US economic forum in May, Foreign Minister said. A French trade mission will visit Egypt in May to explore potential investments in the local market.Manufacturing, tourism, and CIT sectors were among the biggest contributors in GDP growth in 1Q 2024-2025, which recorded about 3.5%, up from 2.4% in 4Q FY 2023-2024. MPs are reconvening today after a two-week break to discuss and vote on three draft tax-related laws.The Ministry of Finance is looking into swapping debt for assets and investments with several international parties and institutions, in both clean energy and human development.Foreign investments, including Arabs, through the secondary market exceeded a net purchase of about USD2.57 billion in 20 business days from December 29 to January 23.The Financial Regulatory Authority (FRA) has amended the rules governing private insurance funds and the caps on their investments in a move aimed at helping them diversify their investment portfolios. The decision allows private insurance funds that operate defined benefit pension plans to invest up to 10% of their total assets in metal-related funds or instruments traded on the EGX.SKPC released 4Q24 financial indicators. Net profit increased by 1% YoY (-2% QoQ) to EGP650 million during 4Q24. Full year net profit increased by 3% YoY to EGP2.5 billion in 2024. SKPC is currently trading at a 2025e PE of 6.3x and EV/EBITDA of 5.8x.The FRA Grievance Committee reviewed the complaint from Ahmed Ezz, the main shareholder in ESRS, regarding the exclusion of his shares and the shares of related parties from voting on the general assembly's decisions related to the delisting of the stock from EGX. The committee accepted the grievance for review but ultimately rejected it on substantive grounds. Egyptian contractors, including ORAS, SWDY's Rowad, and Hassan Allam, are close to wrapping up one of Libya's mega infrastructure projects, with investments of USD1 billion, according to local media. 

Egypt plans to issue USD1-1.5 billion worth of eurobonds or green bonds in international markets as soon as next month, followed by an issuance of sovereign sukuk, to take advantage of rising investor interest in Egyptian debt, a senior government official said.The African Development Bank (AfDB) has approved a USD170 million loan to Egypt to foster private sector development and green growth, the lender said in a statement. The funds will help support the FY2024-25 budget with the aim of boosting private investment and creating jobs, namely to women and the youth.The Financial Regulatory Authority has increased the minimum value of unlisted securities ownership transfers requiring approval to EGP60 million, up from EGP20 million currently, according to an authority statement. Transactions below this threshold will follow standard announcement procedures.SUGR released FY24 financial indicators, reporting 4Q24 net profit of EGP286 million (+52.9% YoY, +795.6% QoQ) with NPM of 12% (-0.8pps YoY, +9.3pps QoQ). This brought FY24 net profit to EGP1,258 million (-20.9% YoY) with NPM of 26.7% (+4.1pps YoY). SUGR is currently trading at 2025f P/E of 5.1x and EV/EBITDA of 5.9x.According to local media, HELI's co-development projects with MASR and Middle East for Real Estate Development and Investment are expected to be launched in 2025. Real estate investment firm, Bonyan, has secured EGX approval to list its shares on the EGX under the ticker BONY.CA. The company is planning to list on the EGX in 1H25.Shell will start drilling three new gas wells in the West Delta region within days. The new wells, which will see USD230 million in investments, will add 150 million cubic feet of gas per day to Shell's local natural gas production by year-end.Suez Methanol Derivatives Company plans to start operations of the methanol derivatives project inside Damietta port during 2H25. The project's investment cost could reach USD122 million.OFH, Orascom Financial Holding, changed its name to O B Financial Holding after B investments acquired 70% of the company through a share swap. OFH approved canceling treasury shares, thereby decreasing paid in capital to EGP1.464 billion.Local e-payments firm and payment cards manufacturer Masria Digital Payments launched operations in Libya after migrating card processing for North African Bank, which hosts 61 branches in Libya, to its platform. The company is also exploring opportunities to support additional financial institutions in Libya as part of its strategy to grow its regional footprint.

*Key news articles for today*The Minister of Planning expects the agreement with the European Union to grant Egypt EUR4 billion in funding next June to support the budget as part of the structural reform program for the economy.Egypt's USD bonds were among the emerging markets' top gainers following Trump's return to the White House and the Gaza ceasefire. The government cleared up USD1 bn in arrears owed to foreign oil companies in the first week of January. A new schedule to settle the accumulated USD6.5 bn in arrears had been agreed on with companies, with repayments set to run from next month until June 2025.The Suez Canal is preparing to receive the navigation services of major shipping lines, as it is expected to benefit from the ceasefire agreement in the Gaza Strip. The Houthis have announced a halt to attacks on American and British ships in the Red Sea region, after the Gaza truce agreement came into effect.State-owned Arab Organization for Industrialization's (AOI) joint solar panel manufacturing project with Sweden's Sunshine Pro is set to be operational in July of this year and have a production capacity of 1 GW of panels by July 2026, AOI's Arab Renewable Energy Company Executive Director said. The project is expected to cost somewhere between USD200-300 mn.Over 12k medical tourists from 50 different countries visited Egypt for treatment in 2024, an increase of 200% y-o-y, the Egyptian Healthcare Authority said.The government targets proceeds of EGP250 million to EGP350 million from the offering of Misr Pharmaceuticals Company during 1H25. Sources told local press that the government intends to offer a 25% to 30% stake in the company, in addition to offering the same stake in Seed Pharma.OLFI Net profit recorded EGP279 million in 4Q24 (+70.9% YoY, -6.8% QoQ). In FY24, net profit recorded EGP1,000 million (+112.5% YoY). OLFI is currently trading at FY25f P/E of 7.4x.BoD proposed cash dividend distribution of EGP2.0/ share implying payout ratio of 80% and dividends yield of 10.4%.EGBE 4Q24 stand-alone bottom line recorded EGP620 million (-11% q/q, +69% y/y), bringing FY24 bottom line to EGP2,550 million (+80% y/y, and 18% higher than Al Ahly Pharos estimates). BoD proposed increasing the paid-in capital by EGP550.55 million through bonus shares and proposed cash dividends distribution of EGP0.99/per share.Ministry of Environment assigned cement companies to expand in establishing waste recycling plants to produce alternative fuel (RDF), with five cement players have committed to fund 13 plants throughout 2025.

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Derivates will begin trading on the EGX in 2Q 2025, Financial Regulatory Authority Deputy Chairman Islam Azzam said. Azzam highlighted futures contracts for indices as being among the incoming additions.The FRA is also considering offering financial leasing loans for industrial lands from the Industrial Development Authority (IDA) for the first time, Financial Regulatory Authority Deputy Chairman Islam added.The government committee tasked with reforming state economic authorities has completed studies on 40 of the 59 authorities, according to a cabinet statement.Egypt has reportedly chartered a third floating storage regasification unit to process LNG imports to dock at Ain Sokhna by June 2025, according to an unnamed government official.Egypt's imports from Israeli gas increased by c.8% during the first week of this December, reaching 970 million cubic feet per day, compared to an average of 900 million cubic feet per day in the last two weeks of November.The Finance Ministry is mulling letting industrial projects pay customs taxes in installments in a bid to increase liquidity in the sector and support its growth, unnamed government sources said.The government is set to finalize its charter outlining strategies and recommendations for supporting startups in 2025 as part of the government's new Entrepreneurship Ministerial Committee, Planning and International Development Minister Rania Al Mashat said.Delta Insurance, 63.39% owned by EKHO received two bids for acquiring not less than 75% and up to 100% of the company's shares at an indicative price of EGP50/share. This indicative price translates into USD0.06/share of EKHO's outstanding shares, using an exchange rate of EGP50/share. We remind you that in our latest update published on 28 November 2024, we valued EKHO's stake in Delta Insurance at USD0.06/share of EKHO. Our FV for EKHO using SoTP valuation method was USD1.19/share.EGCH released 1Q24/25 unaudited financial indicators posting net profits worth EGP28 million during 1Q24/25, an 89% YoY decline (-98% QoQ) as compared to a net profit of EGP350 million in 1Q23/24 and EGP2.4 billion in 4Q23/24 which included EGP2 billion in real estate revaluation gains. EGCH is currently trading at a 2024/2025e PE of 26.6x and EV/EBITDA of 9.2x.United Bank's shares will debut on the EGX today under the ticker UBEE.CA, at a price of EGP 13.85 per share. The stock will trade with expanded price limits of ±40% on its first day, with no temporary suspensions, and a 30-day stabilization period beginning today until 8 January 2025, during which shares from the public offering can be sold back at the IPO price.ATLC is officially licensed for mortgage financing from the FRA. BTFH signs a joint venture agreement with an Italian company, CRIF to support the launch of a new entity that will offer a set of credit ratings services primarily in the Egyptian market, potentially expanding to MENA region. ESRS confirmed, in a release to LSE, that the company is not tendering for the GDRs in the planned buyback and, if a holder of GDRs wishes to tender the underlying shares, the holder must first surrender the GDRs and receive delivery of the underlying shares.Abu Dhabi-based Electra Investment Holding has acquired some 8.3 million additional shares of SWDY, some 0.39% of the company, for EGP88.15/share, bringing Electra's stake in SWDY to 20.37%. Naguib Sawiris plans to list his real estate development company, Ora Developers, on a stock exchange within three years.RACC will buy back up to 7.1% of its shares between 9 December and 9 January. The company has already purchased some 5.9 mn treasury shares, equals to 2.9% of the total shares, between March and April of this year.

Over in the US on Monday afternoon trade, Wall St has pulled back from record territory as investors look ahead to key inflation data out later this week in the US. The Nasdaq and S&P500 retreated from record highs to end the day down 0.61% and 0.61% respectively, while the Dow Jones ended the day down 0.54%. Nvidia shares lost 2.6% on Monday following a Chinese regulator announcing it is investigating the AI semiconductor giant for potentially violating the country's antimonopoly law.In Europe overnight, markets mostly extended the positive run from last week into the new trading week as investors assessed further stimulus talks out of China, a key trading area for Europe. The STOXX 600 rose for an eighth straight session to close 0.14% higher, Germany's DAX fell 0.19%, the French CAC rose 0.72% and, in the UK, the FTSE100 ended the day up 0.52%. Chinese leaders on Monday promised more proactive fiscal measures and moderately looser monetary policy for next year.Across the Asia region on Monday, markets closed mixed amid revised economic growth data out of Japan and on the release of China's November inflation data. Japan's Q3 GDP growth was revised up from 0.2% to 0.3% on a QoQ basis which topped analysts' estimates and boosted Japan's Nikkei to a 0.1% rise on Monday. China's CPI or inflation data on the other hand was also released on Monday and had the opposite response from investors as inflation in the region rose 0.2% YoY in November which missed expectations and was a decrease from the 0.3% rise in October indicating further sluggish recovery in the region, this led to China's CSI index falling 0.6% on Monday. Hong Kong's Hang Seng also fell 0.6% on Monday and South Korea's Kospi Index ended the day down over 2% on political instability.The local market had a lacklustre start to the week however recovered from early losses on Monday to end the day with a rise of just 0.03%. Consumer discretionary stocks boosted the market to a positive close yesterday with a rise of 0.64% while the energy sector fell 1.05% tracking the weaker price of oil over recent weeks.Aussie telco provider Superloop rallied 1.8% on Monday after announcing it has entered a deal to acquire Optus' subsidiary brand Uecomm for $17.5bn which will add over 2000km of high-capacity fibre assets to Superloop's brand.Platinum asset management tumbled 14.35% on Monday after its takeover talks with Regal Partners ended with no deal reached. This was on top of Platinum also announcing its Funds Under Management took a major hit in November.And capital raisings hit a few companies share prices yesterday with Calix ending the day down 12.22% after announcing the completion of an institutional placement that raised $20m at 75cps, while Paradigm Biopharmaceuticals tumbled 7.76% after raising $16m at 40cps, which is over a 30% discount to the previous closing price of the share.What to watch today:Ahead of Tuesday's session on the ASX the SPI futures are anticipating the ASX will open the day up just 0.04%.On the commodities front this morning, oil is trading 1.95% higher at US$68.51/barrel, gold is up 1.25% at US$2666.13/ounce, and iron ore is down 2.05% at US$104.11/tonne.The Aussie Dollar has further weakened overnight to buy US$0.64, 97.70 Japanese Yen, 50.19 British Pence and NZ$1.10.We may also see investors react to the RBA's rate decision and commentary around the last rate decision for 2024 this afternoon where it is widely expected Australia's central bank will hold the cash rate at the current level of 4.35%. Trading Ideas:Bell Potter has downgraded the rating on Platinum Asset Management (ASX:PTM) from a hold to a sell and have significantly dropped the price target on the company from $1.21 to 74cps following funds under management dropping over 10% in November to $10.957bn and on the back of merger talks ending with Re

Egypt is in talks with the International Monetary Fund to extend timelines for key reforms under its economic reform program, a senior government official said. The official expects Egypt to be placed on the IMF Executive Board's agenda before the Christmas holidays for the amendments to be given the final greenlight.The average yield on three-month EGP-denominated t-bills rose to 31.419% in Sunday's auction by the Central Bank of Egypt, up 0.219 percentage points since the same bills last went to auction. Net foreign reserves remained flat at USD47.0 billion at the end of November 2024.Chinese luggage manufacturer Hangzhou Henneway Travel Goods kicked off construction on its USD50 million factory in the Suez Canal Economic Zone's (SCZone) Qantara West Industrial Zone.CBE data revealed that Egypt paid USD1.3 billion in repo agreements (repurchase international bonds) worth USD1.3 billion last month.The trade deficit recorded USD31.275 billion during the first 10 months of 2024, an increase of 1% compared to a deficit of USD31.025 billion in the same period last year.United Bank's shares will debut on the EGX tomorrow under the ticker UBEE, following the close of its heavily oversubscribed retail and private offerings that put the company's share price at EGP13.85.ESRS Board of Directors agreed to begin procedures for delisting its shares from the EGX, pending the general assembly's approval. Saudi cable manufacturer Al Mousa Cables is set to establish its first EUR50 million cable production factory in Egypt, according to local media. We updated our FV for EAST to EGP48.11/share, maintaining our Overweight recommendation. EAST is currently trading at FY24/25 P/E of 6.3x and EV/EBITDA of 5.5x.CLHO reported positive 3Q24 results with 3Q24 attributable net profit amounted to EGP207 million, up 45% QoQ and 73% YoY, yielding a NPM of 14.2%. On a YTD basis, 9M24 attributable net profit came in at EGP532 million (+71% YoY) yielding a NPM of 13.9% (+1.61pps YoY). CLHO is currently trading at FY25 multiples of P/E 14.2x and EV/EBITDA of 7.0x.According to AMIC, auto sales increased by 7.3% YoY and 1.1% MoM in October to record 9.6kvehicles up from 9.0k vehicles during October 2023 and 9.5k vehicles in September 2024. Weekly Commodities Update |   | Last Price | WoW Change, % | Brent, USD/bbl | 71.1 | -2.5% | Diesel-HSFO Spread, USD/ton | 229.3 | -3.8% | Egypt Urea, USD/ton | 364.0 | 2.8% | Polyethylene, USD/ton | 950.0 | 0.0% | Polypropylene, USD/ton | 960.0 | 0.0% | Iron Ore 65%, USD/ton | 123.6 | -0.2% | Steel/Iron Ore Spreads, USD/ton | 377.1 | -1.0% | LME Aluminum Cash Price, USD/ton | 2,569.8 | -0.3% | LME Copper Cash Price, USD/ton | 9,011.9 | 1.4% | Egyptian Retail Cement, EGP/ton | 2,847.0 | 0.0% | Steam Coal FOB Newcastle Australia, USD/ton | 133.3 | -5.8% | SMP, USD/MT | 2,848.0 | -1.2%

Prime Minister said that there is a plan to offer three to four companies affiliated with the military on the EGX. We should know more next week with the release of the government's privatization plan for the coming period.Prime Minister said that foreign companies, both new to the market and veterans, are getting ready to launch projects, including in the automotive and renewable energy industries.Scatec's Obelisk Solar was granted a golden license for a USD600 million solar project over a 16.3 sq km area in Nagaa Hammadi. Scooter manufacturer Piaggio is mulling reopening its factory in Egypt.Home appliances manufacturer Ariston is thinking about expanding its presence in the Egyptian market. Railway company HitachiRail, which recently acquired Thales' ground transportation unit, is looking to expand its footprint in Egypt.Luxury yacht manufacturer Navigo highlighted its interest in investing in Egypt's yacht industry.Industrial vehicles manufacturer Iveco is conducting a feasibility study to launch a new factory in Egypt for truck manufacturing.Railway and urban mobility company Salcef Group discussed establishing a new company in collaboration with Egyptian Railways for Track Renewal and Maintenance Company.The Prime Minister stated that there are five global alliances competing to plan the area surrounding the Pyramids, the Grand Egyptian Museum, and the Sphinx Airport.Italian state-owned Italian State Railways discussed submitting an offer to manage and operate Egypt's high-speed electric rail network.China's New Hope Group is exploring a USD100 million investment to establish a feed production complex in an industrial zone.FutureFert is set to launch the first phase of its USD40 million fertilizer plant after receiving a golden license for the project. Yemen's Al Kbous Tea plans to invest around USD30 million in Egypt over the next two years to boost production capacity and upgrade machinery.The New Urban Communities Authority is mulling a EGP150 billion sukuk program in 2025, which would help fund the development of land plots in new cities.United Bank's shares are expected to debut on the EGX next week, with sources telling media that shares could start trading on Tuesday. HRHO announced the completion of its advisory services for the IPO of United International Holing (UICH) in Tadawul Saudi Arabia with a market cap of USD264 million. ATLC general assembly approved the distribution of cash dividends of EGP0.599/share forFY23, implying a dividend yield of 13.1%.EFIH's cash dividends of EGP0.197/share record date is on 24 December 2024 and distribution date is on 29 December 2024.MBSC reported solid financial performance in 3Q24. Net profit came in at EGP165.4 million (+7.3% YoY, -8.1% QoQ). 9M24 net profit recorded EGP387.0 million, up from EGP243.7 million in 9M23. MBSC is trading at FY25 P/E of 10.3x and EV/EBITDA of 7.7x.ARCC is to distribute cash dividends of EGP1.585/share for FY23, implying a payout ratio of 87% and a dividend yield of 11%.CCAP's waste management company Ecaru will close and rehabilitate the Qalabshu landfill in Dakahlia as part of the Kitchener Drain Project, under a EUR10 million agreement inked with the Local Development Ministr

Hassan Allam Holding and ADP France have submitted a joint proposal to manage and operate Egyptian airports.UAE-based EV infrastructure company Zero Carbon is currently undertaking feasibility studies ahead of a launch in the Egyptian market.Egypt is planning to carry on importing liquefied natural gas until the country closes the gap between domestic production and consumption in either 2029 or 2030.MPs are expected to give their final approval to a government-drafted cash-based subsidies bill aimed at supporting citizens living under the poverty line.MPs are also set to decide on five draft agreements authorizing the Oil Ministry to partner with foreign companies for oil and gas exploration.International financial institutions invested nearly USD890 million in Egypt's private sector during November, with climate finance, SMEs, sustainable tourism, and renewable energy projects.The General Authority for Investment and Freezones (GAFI) is working with the World Bank and relevant ministries to develop a national strategy for foreign direct investment from 2025-30, with the complete strategy to be announced in “the coming months”.The Central Bank sold EGP60.4 billion worth of three-month t-bills with an average yield of 31.20%, up 0.28 percentage points from its last auction and surpassing the EGP40 billion target. UAE company Green Coast aims to pump investments worth USD50 million into the Egyptian market over the next three years. Finance Minister said that EGP10 billion due to pharmaceutical companies will be provided before the end of this year. The Central Bank of Egypt will issue today one-year treasury bills denominated in foreign currency, worth USD900 million. Egypt is looking forward to increasing the volume of German investments by 20% during the next year, to reach the range of USD3.6 billion.We raised our FV for EFIC from EGP89.00/share to EGP165.91/share and maintain our Overweight recommendation of the stock. EFIC is currently trading at a 2025f PE of 4.7x and EV/EBITDA of 4.0x.Egypt Gas announced signing the shareholder agreement to establish a company for producing polyethylene pipes with a total capital of EGP340 million. The Swiss company, George Fisher, will hold 74% of the new company, Egypt Gas will hold 25%, and the Emirati Corys company will hold the remaining 1%.HELI (FV: EGP18.84, OW) shareholders voted to postpone the capital increase.MASR (FV: EGP8.11, OW) signed an MoU with CCAP subsidiary, ASEC Automation, to construct the second phase of infrastructure and road networks in Sarai, with investments exceeding EGP580.0 million.CIRA reported 4Q24 financial results. Bottom line recorded loss of EGP374 million in 4Q23/24. This brought FY23/24 net profit to EGP35.6 million, a decline of 71% YoY. CIRA is currently trading at FY24/25f P/E of 25.2x and EV/EBITDA of 7.6x.DSCW reported 3Q24 results, showing net profit of EGP319 million (+105.1% YoY, -12.9% QoQ). This brought 9M24 net profit to EGP803 million, a growth of 1.9x YoY. DSCW is currently trading at 2025f P/E of 3.2x and EV/EBITDA of 3.6x.OFH reported 3Q24 net loss of EGP1.5 million compared to net profit of EGP26.4 million in 2Q24 and net loss of EGP0.9 million in 3Q23, leading to a 9M24 net income of EGP2.4 million (-96% y/y).Banque du Caire recorded a net profit during 9M24 of EGP8.6 billion (+90.2% y/y). The National Bank of Egypt recorded a net profit of EGP70.6 billion during 1H24 (+185% y/y). Weekly Commodities Update

German companies are mulling several investments in Egypt, including:A EUR 1 billion direct reduced iron factory.A EUR 30 million flame-resistant material factory.A EUR 5 million first phase of a bicycle parts factory. Auto parts factory in Egypt.China Glass Holding subsidiary CNG Egypt New Energy Glass kicked off construction work on a USD300 million glass factory.The ro-ro shipping line connecting Damietta Port with Italy's Port kicked off operations on Thursday with its first shipment setting sail. Net foreign assets in the Egyptian banking system fell to USD9.2 billion by the end of October, down from USD10.31 billion in September.The Cabinet approved the creation of a desert land development chamber under the Federation of Egyptian Industries. MPs are set to discuss and vote on a draft cash-based subsidies bill today that aims to give cash-based subsidies to citizens under the poverty line without access to social insurance.The CBE sold EGP47.0 billion worth of the bills, surpassing its EGP35.0 billion target, at 30.86%, 0.27% higher than their last auction. Minister of Finance announced that Egypt is set to issue a sovereign sukuk denominated local currency. The issuance is scheduled for the first quarter of 2025.Prime Minister said that the government will not repeat previous mistaken policies of keeping the exchange rate static on the assumption that a fixed rate demonstrates stability. The Supreme Council for Investment is preparing to issue new decisions aimed at empowering the private sector in strategic projects that the government seeks to expand during the coming period. Egypt has reopened fish exports to the EU after a three-year freeze.We maintain our overweight recommendation of EKHO at a downgraded FV of USD1.19/share. Despite the outstanding risks represented in further currency depreciation and downward pressure on global prices or lag in local repricing, EKHO is exerting efforts to withstand such risks. EKHO is currently trading at a FY25f PE of 5.0x and EV/EBITDA of 3.7x.EFIC released 3Q24 consolidated financial results. Net income grew 569% YoY (+49% QoQ) to EGP535 million, bringing 9M24 net income to EGP1.3 billion (+157% YoY). EFIC is currently trading at a 2025f PE of 7.3x and EV/EBITDA of 4.7x.CANA has exited from investments in four entities worth EGP142 million.The total value of the bank's investment portfolio in September 2024 amounted to about EGP2.8 billion, compared to about EGP1.9 billion at the end of 2023.HRHO's commercial bank Bank NXT partnered with global payment solutions firm Mindgate Solutions to launch a new digital platform for corporate clients.CICH and Compass received FRA approval to launch the C3 Capital Fund targeting EGP3 billion. HRHO has finished its role in advising Maarif Education on its takeover of Ibn Khaldoun Education. MNOs are set to launch eSIM cards before the end of 2024. 

Building on our discussion of Sea Groups Q3 earnings, this week we unpack Sea Group's US$4.6B loan book, which has grown 30% QoQ while keeping non-performing loans low.  Tune in as we break down how Sea Money leverages Shopee's customer data to assess credit risk, fueling growth for both its digital financial arm and Shopee, with BNPL services encouraging users to finance larger ticket items.  On the other hand, Grab's loan book, although smaller—at just 10% of Sea's loan book—has potential. While Grab's user base skews more premium and its ride-hailing model sees fewer transactions than e-commerce, it's steadily growing. With 41.9 million monthly transacting users and expanding services across income segments, Grab is creating new opportunities in digital finance. Chapters: 00:00:37 SEAMoney's US$4.6B loan book  00:04:00 How do tech players support lending?  00:06:20 SEA maintains a low non-performing loans (NPL) 00:12:28 Shopee Paylater boosts ecommerce growth  00:18:15 Does Grab's financial services have potential?

We are excited to share our Q3 U.S. Jobs Report, offering key insights about the U.S. labor market in the third quarter of 2024. The data in this report comes from Aspen Technology Lab's JobsIndex, which aggregates daily vacancy information from more than 200,000 company career sites, ensuring you receive the most accurate and up-to-date information. Overall, this quarter, vacancies continued their upward trend from Q2. Total job listings ticked up 0.5 percent QoQ, or by roughly 30,000, but are still down 4.5 percent YoY. Q3's numbers show positive momentum, with full-time salaries and salary transparency on the rise. DOWNLOAD 

On Episode 407 of The Core Report, financial journalist Govindraj Ethiraj talks to Abhishek Gaoshinde, deputy vice president of research at Sharekhan by BNP Paribas SHOW NOTES (00:00) The Take (04:12) Markets rise (05:06) Oil prices fall as stockpiles increase (06:04) TCS results are out, net profits down marginally QoQ (14:17) Inflation set to rise for last month ⁠⁠⁠⁠⁠⁠⁠⁠Listeners! We await your feedback....⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ The Core and The Core Report is ad supported and FREE for all readers and listeners. Write in to shiva@thecore.in for sponsorships and brand studio requirements For more of our coverage check out ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠thecore.in⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Join and Interact anonymously on our whatsapp channel⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Subscribe to our Newsletter⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Follow us on:⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Twitter⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Instagram⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Linkedin⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Youtube⁠

Is there a hidden meaning behind FitLife Brands calling MusclePharm “our most significant organic growth opportunity”? For those unaware, the supplement brands that are within the FitLife Brands portfolio are now categorized in four segments…NDS Products (which are a collection of brands mostly sold in the GNC franchise system), iSatori Products (which are a collection of brands sold through a diversified retail mix), Mimi's Rock Corporation Products (which are a collection of brands mostly sold on Amazon), and then MusclePharm Products (which was acquired on October 10, 2023). In total, the FitLife Brands portfolio is sold through more than 20,000 retail locations globally. In the first quarter of 2024, FitLife Brands Inc. (NASDAQ: FTLF) had revenues of $16.5 million…which was up 54% YoY. On face value that obviously looks impressive, but you had both the Mimi's Rock and MusclePharm acquisitions that happened in 2023 and greatly impacted the comparable growth percentage. If you look at the revenue from a QoQ perspective, FitLife Brands revenues increased around 24%. While there's strategic initiatives going on at legacy FitLife Brands and Mimi's Rock, the most intriguing segment within FitLife Brands is also currently its smallest...MusclePharm. In the first quarter of 2024, MusclePharm segment revenue was $2.1 million. And if you were wondering about YoY comparatives, let's just say the Eric Hilman run MusclePharm bankrupt version outsold this current version. But that's probably an apples-to-oranges comparison because Eric Hillman was focused on survival by any means necessary, and FitLife Brands is attempting to make strategic business decisions that support and optimize long-term growth. Despite that, MusclePharm revenue on Amazon is growing MoM, with platform subscriber growth continuing to be strong. And what might be helping that of late is the return of MusclePharm Combat protein bars that were relaunched in April. But I'm fearing that FitLife Brands might be getting excited about early indicators of sales performance, getting overly-confident, and might be getting caught up in the last (and biggest) part of that old MusclePharm sales playbook. And CEO Dayton Judd even had to take jabs last quarter's comments I made about “launching more and more products” before then in the same breath going mentioning FitLife Brands was exploring the product format “no-no zone” I talked about with RTD beverages...whether that's an energy drink or protein shake. But I'll breakdown all the strategic elements within the recent FitLife Brands announcement...including how it impacts projected margins and how that relates to FitLife Brands future supplement industry M&A strategy overall. FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS ⁠⁠⁠⁠⁠⁠⁠⁠LINKEDIN⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠YOUTUBE⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠TWITTER⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠INSTAGRAM⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠FACEBOOK⁠⁠⁠⁠⁠⁠⁠⁠ --- Support this podcast: https://podcasters.spotify.com/pod/show/joshua-schall/support

E117: David interviews Shannon Denton, Co-founder and CEO of Wripple, who has developed a two sided marketplace that supports two ways to build a modern marketing team, hiring by role or hiring by project. A proven talent supply is screened and curated as individuals and as teams while agencies and enterprise brands  can shop the marketplace with cost transparency and confidence in the talent skill sets. This solves a big problem for talent: how to get the best gigs while staying independent with less hustling and more doing. This also solves a big problem for enterprise CMOs: how to control costs and fit talent to jobs without expanding FTEs. CMOs can extend their team with individual experts across more than 45 marketing roles to curate a team that meets their exact needs. Or, they can select from over 35 digital projects with configurable ready-made teams and deliverables, for a fixed price. With 150+ enterprise clients under contract, Wripple has been growing Quarterly Net Revenue at ~18% QoQ for the last 5 quarters. Currently on track to be EBITDA positive in Q4 of 2024 with projected net revenue for 2024 >200% of 2023, Wripple will add two new products with independent revenue streams in 2024. And, independent market research forcasts 92% of marketing leaders plan to INCREASE freelancer engagements in 2024. (recorded 4/30/24)Follow David on LinkedIn or reach out to David on Twitter/X @DGRollingSouth for comments. We invite your feedback and suggestions at ventureinthesouth.com or email david@ventureinthesouth.com. Learn more about RollingSouth at rollingsouth.vc or email david@rollingsouth.vc. Follow Paul on LinkedIn. Download our White Papers and Cheat Sheets HERE. Thanks for listening and remember: Our mission is to MAKE MONEY, HAVE FUN AND DO GOOD.

In a world with lots of content noise, play to the silences. Let your messaging be simple and clear, and even short. In this episode, we're learning from the musician who let there be simplicity and space. Who played his trumpet in a sparse style so that each note was beautiful and carefully chosen. That's Miles Davis.And with our special guest, Ben Lempert, Director of Content & Web at Heap, we're talking about creating simple messaging, capturing different voices, leaving room for spontaneity, and the importance of feeling in your marketing.About our guest, Ben LempertBen Lempert is Director of Content & Web at Heap. He has been there for over 4 years, having joined in August 2019 as Head of Corporate Marketing. During his time in his current role, Ben has built a Thought Leadership Content Hub to curate all of Heap's content and facilitate the stages of the buyer's journey, created the Heap Digital Insights Report, which generated thousands of leads and a 50% increase in content downloads, created the Digital Experience Insights Report series, which generated 6000+ downloads and bylines in Forbes and VentureBeat, developed creative initiatives including the Heap Comic Book and the Heap Explainer video series,  grew SEO traffic from 0 to 29,000+ visitors/month, increased social media followers by 100% over three successive years, and grew PR SOV 25% QoQ for nine successive quarters. He has over 10 years of experience in content strategy, brand, comms, creative, editing, and leadership.What B2B Companies Can Learn From Kind of Blue:Create simple messaging. Distill your message into plain but pointed language directed at your particular audience. Ben says, “What people respond to in Kind of Blue, and I think what people often respond to best in good content, is a simple, clear, open, direct message. I think a lot of companies get very complex in talking about the nuances of their solution and the technical advantages their product offers. I think it's worth it in the content world for most companies to think about what your fundamental message is, whether that's one sentence or one paragraph or four words. What's the thing that people will respond to that explains what you do and why it matters in a unique way? It's very hard to get to. I don't think many companies do it well. It's very easy to come up with something that's too abstract to be meaningful.”Capture different voices. Feature quotes from both your customers and colleagues in your content. Gather info and input from all of them and work it into your content. You don't have to operate all alone on a marketing island. Ben says, “Jazz, like content, is a team activity. I think one of the great things about Kind of Blue is that there's room for lots of individual voices. When we think about representing our company through our content, it's worth recognizing that there are plenty of voices across the company. And they all have different ways of expressing what's important. So it's okay to vary the voice and story you're telling, as long as you have a fundamental story that is simple and clear. What's on top of it involves orchestrating these different voices in a way that hits people in different ways and allows for nuance and complexity to be added to your story.”Leave room for spontaneity. Yes, get your work done. But then leave a little time to experiment and play. Ben says, “We are all extraordinarily busy. But sometimes the best marketing comes from carving out time for free form group thinking. Brainstorming, coming up with ideas that are new and off the wall, having that be a prompt.”Mood and feeling matter. Instead of getting into the nitty gritty technical details, focus on how you make the customer feel. Ben says, “Kind of Blue has that impact on you because of the way it sounds. You're not listening to every single note and you're not listening to Coltrane saying, ‘Oh, he played a flat 13 there. Whoa, that's wild!' It impacted you on a deeper, more emotional level. And we often forget that as content writers, that our audience are not robotic automatons. They're people. And we want to hit their emotions. That's where you reach people.” So ask yourself, “How do I want to make my audience feel?”Quotes*”[Kind of Blue] is one of the very few jazz records that most people who are not jazz fans own and listen to actively. And I think there are lots of reasons for that. And I think that gives us a pretty interesting lens for thinking about how content works, given that lots of content is directed towards people who may not be aware of the intricacies of your technical solutions, but still want to be compelled by what you have to say and want to be interested in it.” - Ben Lempert*”Miles was famous for having a very sparse style, very much interested in playing space. And for him, he was very actively thinking about how to play the silence and the space between notes as much as he was playing the actual notes. So he was super minimalist, would play one or two notes, but they would be absolutely beautiful and absolutely brilliant and took a sort of courage to play those one or two notes that very few musicians have. It's much easier to play a lot of notes and hope you get something right. It's much harder to have that one pithy statement and let it hang there.” - Ben Lempert*”Always strive to create a simple, communicable foundation that ideally everyone in the company can embody. And when the audience receives it, they understand right away. And then you build complexity on top of that.” - Ben LempertTime Stamps[0:55] Meet Ben Lempert, Director of Content & Web at Heap[4:37] Ben Lempert's Journey from Jazz Musician to Director of Content[8:47] The Making of Kind of Blue: A Revolutionary Jazz Album[10:20] Miles Davis' Vision and the Birth of Modal Jazz[23:59] Kind of Blue's Legacy and Impact on Jazz and Beyond[28:24] Exploring the Creative Process and Expectations[29:51] The Power of Minimalism in Music and Marketing[33:44] Improvisation: Jazz Lessons for Conversational and Creative Skills[36:12] Marketing Wisdom from Jazz: Simplicity, Emotion, and Spontaneity[48:38] Heap's Content Strategy: Blending Business Goals with Creative Storytelling[55:12] Embracing Experimentation and Spontaneity in Content CreationLinksListen to Kind of BlueConnect with Ben on LinkedInLearn more about HeapAbout Remarkable!Remarkable! is created by the team at Caspian Studios, the premier B2B Podcast-as-a-Service company. Caspian creates both nonfiction and fiction series for B2B companies. If you want a fiction series check out our new offering - The Business Thriller - Hollywood style storytelling for B2B. Learn more at CaspianStudios.com. In today's episode, you heard from Ian Faison (CEO of Caspian Studios) and Meredith Gooderham (Senior Producer). Remarkable was produced this week by Meredith Gooderham, mixed by Scott Goodrich, and our theme song is “Solomon” by FALAK. Create something remarkable. Rise above the noise.

PitchBook's Q1 2024 US PE Breakdown showed some interesting insights about the start of the year. Here are a few key things to note:

I already predicted the massive MyProtein rebrand would face a “no pain, no gain” reality, so what is THG CEO Matthew Moulding all fired up about? THG (aka the company formerly known as The Hut Group) recently updated the public markets by releasing its 2024 Q1 trading statement. I'll be utilizing that financial information, along with notes I took listening to the earnings conference call, and any relevant publicly disclosed information to obviously update you on the recent performance of THG Nutrition division that includes the world's largest online sports nutrition brand MyProtein, but also utilize everything to provide insights surrounding the global supplement markets. For those unaware, THG is self-described as “a vertically integrated, digital-first consumer brands group, retailing its own brands in beauty and nutrition, plus third-party brands, via its complete digital commerce solution, Ingenuity, to an online and global customer base.” During the first quarter of 2024, divisional revenue for THG Nutrition was approximately $188 million, which was down 5.8% YoY. Maybe what's more concerning is that revenue dropped about 10.5% from last quarter. That's a bit abnormal, as the “New Year, New You” Q1 seasonality boost of new buyers into the marketplace usually helps supplement companies grow revenues QoQ. So, what's up with these poor growth rates when the overall global supplement market continues to grow? I'll dive into several things going on here at MyProtein including: its global digital sales channel strategy and retail partnerships in physical retail, integration of supply side acquisitions, the effect the previous pricing strategy had on the sports nutrition brand's customer file, and let's just say A LOT is riding on the success of the MyProtein global rebrand. Early results of the biggest rebrand in the 20-year history of MyProtein is said to be promising in that brand awareness has grown four percentage points higher since rolling out in its home market of the UK. More importantly though…THG Nutrition leadership needs to pay close attention to key commercial metrics over the next year because to continue moving upstream in positioning (and unlocking sales channel diversification opportunities within the American market) it needs to ensure this rebranding decision is well received by and generates brand affinity with those less price-sensitive customers. Additionally, I've provided a few recent marketplace actions made by MyProtein that could be associated with unlocking future winning chess moves. Finally...I'll provide you with another funny Matthew Moulding LinkedIn moment that directly tossed shade at all the flip-flopping pundits and analysts for being stupid and suggesting THG should “sell or close the Beauty and Ingenuity divisions, and just keep Nutrition because then the company would be valued at least double.” I'm sure this is the type of stuff that the British media, financial, and business worlds hate…but it further supports my belief that it's inevitable that all (or parts of) THG will be listed in the American stock markets soon enough. FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS ⁠⁠⁠⁠⁠LINKEDIN⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠YOUTUBE⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠TWITTER⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠INSTAGRAM⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠FACEBOOK⁠⁠⁠⁠⁠ --- Support this podcast: https://podcasters.spotify.com/pod/show/joshua-schall/support

FitLife Brands gave more than 25 million reasons why it believes in the MusclePharm turnaround. So, why am I not impressed? For those unaware, the supplement brands that are within the FitLife Brands portfolio are now categorized in four segments…NDS Products (which are a collection of brands mostly sold in the GNC franchise system), iSatori Products (which are a collection of brands sold through a diversified retail mix), Mimi's Rock Corporation Products (which are a collection of brands mostly sold on Amazon), and then MusclePharm Products (which was acquired on October 10, 2023). In total, the FitLife Brands portfolio is sold through more than 20,000 retail locations globally. In the fourth quarter of 2023, FitLife Brands Inc. (NASDAQ: FTLF) had revenues of $13.3 million…which was up 148% YoY. On face value that obviously looks impressive, but you had both the Mimi's Rock and MusclePharm acquisitions that happened in 2023 and greatly impacted the comparable growth percentage. If you look at the revenue from a QoQ perspective, FitLife Brands revenues declined around 4.3%. While there's strategic initiatives going on at legacy FitLife Brands and Mimi's Rock, the most intriguing segment within FitLife Brands is MusclePharm. But even though MusclePharm was owned for the vast majority of Q4, its contribution to the FitLife Brands quarterly performance was immaterial because they needed to procure inventory (as basically no inventory was acquired in the asset purchase), and they needed to negotiate new retail agreements with MusclePharm's existing wholesale customers. So, what that all means is the MusclePharm business really didn't begin ramping up in terms of both wholesale and online sales until this current first quarter of 2024. Because of that…FitLife Brands gave some additional forward-looking statements based on preliminary first quarter numbers to show the early turnaround progress at MusclePharm. In the first quarter of 2024, MusclePharm segment total quarterly revenue will be around $2.25 million. That's a slight drop in revenue YoY from the 2023 bankrupt MusclePharm era and even a more significant drop from the $3.8 million in Q3 revenue the company generated before the FitLife Brands acquisition. So, then what is needed for FitLife Brands to turnaround MusclePharm? FitLife Brands isn't looking to hit a homerun with the MusclePharm turnaround…or so I thought before I heard the comments on the earnings call and them sharing a new element of the strategic gameplan. But I'm fearing that FitLife Brands might be getting excited about early indicators of sales performance, getting overly-confident, and might be getting caught up in the last (and biggest) part of that old MusclePharm sales playbook…launching more and more new SKUs. I'll breakdown all the strategic elements within the recent FitLife Brands announcement that they're bringing back the MusclePharm Combat Crunch protein bars...including how it impacts projected margins within the MusclePharm segment, how that relates to FitLife Brands return on investment, and future supplement industry capital deployment strategy overall. FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS ⁠⁠LINKEDIN⁠⁠ ⁠⁠YOUTUBE⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠TWITTER⁠⁠ ⁠⁠INSTAGRAM⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠FACEBOOK⁠⁠ --- Support this podcast: https://podcasters.spotify.com/pod/show/joshua-schall/support

The week is in full swing and Q1 results are starting to hit the news cycle. We take a look at BYD's possible slide in Q1, Ford's journey back to the discount aisle, and how big brands have leveraged the April Fools moment over the years.China's BYD reports a significant first-quarter sales dip in 2024, indicating a possible shift in the global EV market leadership back to Tesla, amidst intensifying price wars and changing market dynamics.BYD's first-quarter sales plummeted by 43% QoQ, while Tesla's sales are expected to only fall by 5%, potentially relinquishing its status as the world's leading EV seller to Tesla.Despite a year-on-year increase, the dramatic quarterly drop hints at Tesla's enduring dominance and the impact of competitive pricing in China.Tesla's consistent performance, coupled with a strategic price war in the Chinese market, underscores the intense rivalry between the two EV giants.Ford's strategic price reductions on the 2023 Mustang Mach-E have ignited sales and slashed inventory, spotlighting the critical balance between EV affordability and manufacturer profitability.Ford's discounts of up to $8,100 on 2023 Mustang Mach-E models have spurred sales, addressing the challenge of EV affordability. Despite these efforts, each sale still incurs a loss for FordIn February, almost 3K Mach-E's had sold, up 64% YoYSince the introduction of discounts, the Mach-E's inventory movement has nearly tripled, though its turn rate of 33% still lags behind the industry average of 45%."We are getting a lot of customers who were always interested in an electric product but saw it as unaffordable," said Doug North, owner of North Brothers Ford.From left-handed Whoppers to Velveeta night cream, history has seen its fair share of big brands taking part in the every popular April Fools games."In nationwide surveys, coffee drinkers told researchers the No. 1 complaint they have about their beloved drink is the way it stains," — Caribou Coffee, revealing the spoof behind Caribou Clear coffee (2014).Some fun ones:The Taco Liberty Bell (1996): Taco Bell fooled many by claiming to buy and rename the Liberty Bell, sparking a national stir.Left-handed Whopper (1998): Burger King's prank aimed to cater to left-handers by rotating all condiments 180 degrees for easier handling.Warby Barker (2012): Warby Parker's spoof claimed to launch a line of eyewear for dogs, complete with an Instagram account for adorable, bespectacled canines.Caribou Clear coffee (2014)Saucony changes name to Sock-a-knee (2023)Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email