2 March 2015
MENA daily MENA research
Egypt
Agenda
Mar 2: EFSA to announce winning bidder for the acquisition of Arab Dairy Economic and general news Products Mar 4: Doha Bank’s AGM and EGM to approve international bond issues worth The Supreme Constitutional Court (SCC) ruled yesterday that an article up to USD2bn related to a law defining electoral districts was unconstitutional. President Mar 4: End date of the public Abdel‐Fattah El‐Sisi called on the government to amend the parliamentary subscription to Orascom Construction elections law within 1 month. The Supreme Election Committee (SEC) is Limited’s offering working on a new timetable for holding the elections, the committee’s Mar 4: Distribution date of Cairo Poultry’s DPS of EGP1 spokesman said. (Reuters) Mar 5: Edita Food Industries AGM and EGM to discuss the IFA’s valuation, the The Central Bank of Egypt (CBE) sold USD420m in the interbank market listing of the company’s shares on the yesterday to meet outstanding demand for staple commodities, raw EGX, and the issuance of GDRs materials, and pharmaceuticals, the bank said in a statement. The CBE will Mar 5: Proceedings of the lawsuit filed by Pyramisa Hotels to annul the continue to use the interbank market in the coming period in addition to company’s Sahl Hasheesh land regular USD auctions, the CBE governor said. (Reuters) Mar 5: MNHD’s AGM and EGM to approve increasing paid‐in capital to EGP250m from EGP199.3m through a The CBE will hold 3 FX auctions this week instead of 4 auctions on 2, 4, and 5 0.25:1 stock dividend distribution and March with a value of USD40m each, it announced, without clarifying the donating EGP50m to the Long Live Egypt reason behind reducing the number of auctions. (Bloomberg) Fund Mar 7: OCI NV to effect demerger of the construction and fertilizer business of its Egypt’s 1m housing unit project has been halted because Arabtec Holding subsidiary OCI (ARTC UH, Not Rated), the project developer, failed to reach an agreement Mar 8: Jarir Marketing’s AGM to with the Egyptian government, according to the chief of staff of the Egypt approve the distribution of a DPS of Armed Forces. (Bloomberg) SAR6.5 for FY14 Mar 8: Record date of ASCOM’s EGP150m rights issue Egypt’s government budget deficit for the first 7 months of FY14/15 stood at Mar 9: Orascom Construction to start 6.9% of GDP, widening to EGP159bn from cEGP120bn in the same period last trading on Nasdaq Dubai year. The wider deficit was mainly attributed to a delay in settling taxes of the Mar 9: Record date of Al Baraka Bank Egyptian General Petroleum Corporation (EGPC) and a decline in grants, Egypt’s DPS of EGP0.56 according to a government source. (Al Borsa) Mar 10: Telecom Egypt to release FY14 results German tourists are no longer being warned by their country against Mar 11: Saudi British Bank’s EGM to approve a DPS of SAR1.05 for FY14 and traveling by road to Egypt’s South Sinai area, announced the German 50% capital increase to SAR15bn ambassador in Cairo. However, Germany is still warning its citizens against Mar 11: Start of subscription to traveling to North Sinai, including border zones. (Ahram Online, Bloomberg) ASCOM’s EGP150m rights issue Mar 12: CIB’s AGM to approve the The Egyptian government sold 3‐month T‐bills worth EGP2.5bn at an proposed 25% stock dividend and DPS of EGP1.2 average yield of 11.091% and 9‐month T‐bills worth EGP4bn at an average Mar 12: RAK Properties’ AGM to yield of 11.317%. (Bloomberg, CBE) approve 5% cash dividend distribution for FY14 Mar 12: Sinai Cement’s AGM to approve FY14 results and proposed DPS of EGP1 Mar 12: Sinai Cement’s EGM to approve reducing the company’s capital from EGP700m to EGP681m through cancelling 1.94m treasury shares Mar 12: Distribution date of Al Baraka Bank Egypt’s DPS of EGP0.56 Please see the important disclosures on the last page
MENA daily
Company news GB Auto (AUTO EY, Overweight, TP EGP39.4): The company’s 4Q14 net profit decreased c29% y‐o‐y to EGP32m, according to its press release. (Company press release) Our Comment: This comes c48% below our estimate of EGP61m and misses Bloomberg consensus by c56%, mainly on the back of an FX loss of EGP64m recorded during the quarter and higher taxes. Revenue grew 24% y‐o‐y to EGP3.49bn, 22% ahead of our estimate (+3% above consensus) and gross profit rose c19% y‐o‐y, which is 10% higher than our estimate, leaving gross profit margin for the quarter at 11.8%, down 0.5 pp from a year earlier, and 1.2 pp below our forecast. On the group level, GB Auto’s revenue for 4Q14 beat our estimate by 22% and came in at cEGP3.49bn, mainly driven by Egypt’s passenger car (PC) and 2‐ and 3‐wheeler businesses. Egypt’s PC market continued to show signs of sustainable recovery, as revenue came in 25% higher‐than‐expected (up 64% y‐o‐y), on the back of c17% higher‐than‐ expected units sold, and a c7% higher‐than‐expected effective selling price. Moreover, the 2‐ and 3‐wheeler business added to the top line beat, which was c76% ahead of our expectations on higher units sold (72%) as we assumed a more gradual recovery to 2013 levels. Additionally, the gross margin for the quarter came in at 11.8%, down 0.4 pp from a year earlier, and 1.2 pp below our forecast. Despite EBITDA coming in c19% above our expectations (up 33% y‐o‐y and 7% above consensus), the margin , broadly in line with our estimate, stood at c8.5% due to higher‐than‐expected SG&A expenses. Eastern Company (EAST EY, Overweight, TP EGP310): The company plans to auction a 946 sqm land plot in the governorate of Gharbia through a sealed‐ envelope bidding process organized by Coldwell Banker. (Mubasher) Edita Food Industries (Not Listed): The company will offer ordinary shares on the on the Egyptian Exchange (EGX) and global depository receipts (GDRs) on the London Stock Exchange (LSE) for a total of 30%, it said. The offering will be over 2 tranches, 1 for institutions and high net worth individuals, and the other to the public, it said, without mentioning a value for the offering. The company has already submitted the offering prospectus to the EGX for approval, an unidentified source said, adding that the value of the offering is expected to be around EGP2bn, and that trading of the stock on the EGX is expected to start this April after the offering is completed by end of March. The company has a paid‐in capital of EGP72.536m distributed over 362.681m shares with a par value of EGP0.2/share (Reuters) Orascom Telecom Media and Technology Holding (OTMT EY, Not Rated): The company is not part of the acquisition deal of a 53% stake of Euronews that was announced earlier by Naguib Sawiris, it said. (Mubasher)
Mar 13: Egypt Economic Development Conference to begin in Sharm El‐Sheikh Mar 16: Qalaa Holding’s EGM to approve its EGP1.7bn capital increase Mar 17: Dubai World’s creditors to vote on its USD14.6bn debt deal Mar 17: Saudi Hollandi Bank’s AGM to approve 1:5 bonus share distribution to raise its capital 20% Mar 18: Commercial Bank of Qatar’s AGM to approve the distribution of a DPS of QAR3.5 and 1:10 bonus shares Mar 22: EK Holding’s AGM to approve FY14 results and DPS of USD0.025 Mar 26: Distribution of Heliopolis Housing’s DPS second installment of EGP0.5 Mar 27: Faisal Islamic Bank of Egypt’s AGM to approve FY14 results Mar 28: Misr Beni Suef Cement’s AGM to discuss FY14 results Mar 28: Misr Cement Qena’s AGM to discuss FY14 results and proposed DPS of EGP3 Mar 28: National Company for Maize Products’ AGM to approve FY14 financials and DPS of EGP2.23 Apr 9: End of subscription to ASCOM’s EGP150m rights issue Apr 20: Proceedings of the lawsuit filed by Egyptian Resorts to challenge the TDA’s decision of withdrawing a land plot in the third phase of the Sahl Hashish project
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MENA daily
Société Arabe Internationale de Banque (SAIB EY, Not Rated): Shareholders at the bank’s AGM approved its 2014 financial results and the distribution of USD16m in dividends to shareholders for FY14. Shareholders also approved the donation of EGP10m to the Long Live Egypt fund. (EGX) National Company for Maize Products (NCMP EY, Not Rated): The company’s board approved a DPS of EGP2.23 for FY14 subject to AGM approval on 28 March. (EGX) Egyptian Chemical Industries – KIMA (EGCH EY, Not Rated): The company posted a net profit of EGP18m in 7M14/15, down 33.3% y‐o‐y. (Al Shorouk)
UAE Economic and general news The UAE is benefiting from the strong USD, and the AED’s peg to the USD has been very helpful to the economy, according to the governor of the Central Bank of the UAE. (Reuters) Senaat, which owns Abu Dhabi companies including National Petroleum Construction Company and Emirates Steel, plans to sell shares in a unit this year after postponing its own initial public offering (IPO), it chairman said. The state‐owned holding company is working with JPMorgan Chase and HSBC Holdings for the share sale and is awaiting approval from the Abu Dhabi Executive Council, he added. (Bloomberg) Company news Abraaj Capital (Not Listed): Abraaj Capital, along with European Bank for Reconstruction and Development (EBRD), Deutsche Investitions‐und Entwicklungsgesellschaft (DEG), and Société de Promotion et de Participation pour la Coopération Economique (Proparco), have jointly established North Africa Hospital Holdings Group, a USD200m investment platform focused on Egypt and Tunisia, according to an emailed statement. Abraaj provided USD145m in the holding company, while EBRD made an equity investment of USD25m, and DEG and Proparco provided USD15m each, according to the statement. (Bloomberg) Abu Dhabi‐based Gulf Capital is considering 4–6 acquisitions this year in the healthcare, food, and education sectors, its CEO told reporters. Gulf Capital has no current plans for an IPO, he added. (Bloomberg) Daman Investments (DAMFIFT UH, Not Listed): The company is in the final stages of obtaining regulatory approvals for its IPO, which it expects to take place within the next few weeks, its chairman said. Daman Investments plans to spend a third of the IPO proceeds on improving its brokerage, a third on real estate, and the rest on seeding new funds, he added. (Bloomberg) 3
MENA daily
National Bank of Abu Dhabi (NBAD UH, Not Rated): The bank is not interested in buying the Egypt retail business of Citigroup, and is instead targeting organic growth in the country and globally, the bank’s chief executive told Reuters on Sunday. (Reuters) Arabtec Holding (ARTC UH, Not Rated): The company’s 1m housing unit project in Egypt has been halted because it could not meet conditions set by the Egyptian government, Al Masry Al Youm quoted the head of the Egyptian military’s engineering division as saying. (Bloomberg)
Qatar Economic and general news Qatar’s M2 money supply growth decelerated to 7.62% y‐o‐y in January from 10.60% y‐o‐y in the previous month, according to Qatar Central Bank data. (Bloomberg) Qatar’s net international foreign reserves fell to USD40.7bn in January from USD42.6bn in the previous month, according to central bank data. (Bloomberg) Qatar’s total bank claims grew 7.4% y‐o‐y and 0.5% m‐o‐m in January to QAR540bn, according to data posted by the central bank. Total bank credit in the private sector grew 18.5% y‐o‐y to QAR357bn, claims on semi‐ government institutions declined 11.3% y‐o‐y to QAR27.4bn, while claims on the government decreased 9.0% y‐o‐y to QAR140bn, the data showed. (Bloomberg) Qatar’s foreign trade surplus shrank 48.3% y‐o‐y to QAR18.54bn (USD5.09bn) because of lower oil and natural gas prices, preliminary data from the Ministry of Development Planning and Statistics showed on Sunday. Exports of petroleum gases and other gaseous hydrocarbons in January fell 37.5% y‐o‐y to QAR19.43bn, according to the data. (Reuters) Company news Al Meera Consumer Goods (MERS QD, Not Rated): The company’s FY14 net profit rose c16% y‐o‐y to QAR227m, it reported in a bourse filing. The company’s board also proposed the distribution of a DPS of QAR9, it added. (Bloomberg) Barwa Real Estate Company (BRES QD, Not Rated): The company appointed Salman Mohamad Al Muhannadi as group CEO effective 1 March, it announced. (Reuters) 4
MENA daily
Saudi Arabia Economic and general news Saudi Aramco cited 8 new oil and gas field discoveries in 2014 in a statement by its CEO after a board meeting. (Bloomberg) Company news First Gulf Bank (FGB UH, Not Rated) | National Commercial Bank (NCB AB, Not Rated) | Samba Financial Group (SAMBA AB, Not Rated): Saudi Arabian energy producer ACWA Power International is obtaining a loan of about USD344m from 3 banks to finance a solar energy project in Dubai, its chief executive said on Sunday. The 27‐year amortizing loan with an interest rate of 4% will be provided by First Gulf Bank, National Commercial Bank, and Samba Financial Group, he told reporters on the sidelines of a business conference. The entire project will cost about USD400m, of which the bank financing would account for 86%, he added. The solar plant, to be built by a consortium of ACWA and Spain’s TSK, was ordered by Dubai Electricity and Water (DEWA) and will have a capacity of 200 MW. (Reuters)
Oman Economic and general news Oman plans to make its first sovereign issue of Islamic bonds, a OMR200m (USD520m) issue, by mid‐2015 to help finance a budget deficit caused by the plunge of oil prices, the head of its central bank said on Sunday. (Reuters) Company news Bank Dhofar (BKDB OM, Not Rated): The bank received shareholder approval for plans to raise its capital by as much as USD300m, including through the issuance of capital‐boosting bonds, it said on Saturday. (Reuters)
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