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We hope you had a restful weekend. We have a packed issue for you this morning with all the stock market updates disclosed since Wednesday. Let’s jump in.
Talaat Moustafa sees a 550% YoY hike in sales since year’s start
The Clap:
Talaat Moustafa Group (TMGH) recorded unprecedented sales of about EGP 390 billion from the start of 2024. The company’s historic numbers — 7x the EGP 60 billion it recorded last year — were driven by the success of its “SouthMED” project on Egypt’s Mediterranean, and its “Banan” development in Saudi Arabia.
SouthMED:
The group noted that its 23 million square meter project on the North Coast raked in EGP 251 billion so far, marking the “fastest sales” for a project of its type in the MENA region.
Remember, it raked in EGP 60 billion for the developer within the first 24 hours of the launch of reservation.
The project is expected to contribute to the creation of 1.6 million direct and indirect jobs and add EGP 2.4 trillion to Egypt’s GDP.
Banan:
The company’s Banan project in KSA also recorded an unprecedented sales growth of approximately EGP 42 billion since its launch last May, exceeding its first-year sales target, the group noted.
Impact:
TMG says 2024 sales would drive its pre-tax profits by about EGP 45 billion over the next four to five years. It also added they would add significant foreign currency inflows to its coffers.
What’s next:
The company plans to add 1500 hotel rooms to its hotel business in Egypt, which is driving the total to 5000. Its local hotel operations are expected to generate over USD 300 million in aggregate revenues, it said.
Abu Qir Fertilizers sees a 4% YoY profit fall following gas supply shortages
The clap:
Abu Qir Fertilizers saw a 4.32% YoY fall in net profits to EGP 13.49 billion in the period between July 2023 and June 2024 due to a rise of input costs following the devaluation of the EGP, and declining sales amid gas supply gaps.
Revenues:
The company’s topline shrank more than 14% YoY during the period to EGP 18.52 billion, it noted in an EGX disclosure.
Remember:
These are figures based on the almost one-year period, and come on the back of reported daily losses of EGP 65.54 million which the company incurred when it had to shutter its factories twice last month on the back of low gas supplies.
It also attributed its declining sales to an overhaul of its Abu Qir 1 plant in May, which limited production.
Credit Agricole records almost 70% YoY leap in profits in 1H 2024
The clap:
Credit Agricole Egypt swelled its bottom line 68% YoY in the first half of the year to EGP 4.19 billion.
Net interest income:
The bank recorded a 66.3% YoY rise during the period to EGP 5.3 billion.
Net fee & commission income
The lender saw an 18.9% YoY fall in net fee and commissions income for the period to EGP 677.2 million.
On a quarterly basis:
Credit Agricole reported a 55.7% YoY hike in net interest income during the second quarter of the year to EGP 2.69 billion, while seeing its net profits rise 48% YoY to more than EGP 1.9 billion.
Remember:
The bank has been added to the main EGX30 index (which comprises the most highly capitalized and liquid stocks traded on the Egyptian Exchange) after the bourse completed its semi-annual periodic review of market indices last week.
Arab Cotton Ginning grows its profits 180% YoY in 9M ending in March
The clap:
Arab Cotton Ginning increased its net income by a whopping 179% YoY during the nine months ending in March (9M) to EGP 657 million.
Revenues:
The company’s topline grew 55% YoY to EGP 2.6 billion during 9M, compared to EGP 1.68 billion in the same period the year before.
Speed Medical continues unprofitability streak in Q1 2024
The Clap
Speed Medical Co (SPMD) reported a 5.2% YoY increase in net losses during the first quarter of the year to EGP 25.98 million.
Revenues:
The company’s topline shrank during Q1 2024 to EGP 11.28 million, compared to EGP 15.84 million during the same period in 2023.
The Clap:
Emaar Misr appointed BDO Keys Financial Consulting as the independent financial advisor to determine the fair swap ratio of Emaar Misr and Albro North Coast for Development as the former plans an acquisition of the latter.
Remember:
Emaar Misr’s board of directors approved the feasibility study for a capital increase of 3.19 billion shares to complete the acquisition of Albro North Coast for Developments and Sky Tower for Real Estate Development back in June. Through a share swap, Emaar Misr wants to purchase up to an extra 75% stake of Albro from shareholders, giving it complete control over the business.
Claps class:
A share swap is a way to fund a company acquisition, where the acquiring company pays using its own shares for the equity in the other company, rather than using cash.
The Clap:
Egypt’s largest non-bank financial services provider, Contact Financial Holding (CNFN), announced completion of the procedures for establishment of its insurance consultancy arm Contact Insurance Consultants’” last week. The company will be launched in 4Q 2024 with an initial capital of about EGP 10 million, with CNFN holding a 99.98%. stake.
Business model:
The company, which will augment CNFN’s insurance brokerage business, will offer a wide range of insurance services and pricing choices to customers.
What else is clapping?
The EGX is studying the launch of an index entailing all the financial information of companies temporarily listed on the stock exchange. EGX Executive Chairman told Al Arabiya that the bourse expects as many as 3 companies to be listed on the index by year’s end.
Dice Sports and Casual Wear now has a 99.27% stake in United Dyers following the purchase of a 16.67% share in the latter.
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