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Sunday, 28 August 2016

BY THE NUMBERS

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Pharos Holding - http://www.pharosholding.com/

USD CBE auction (Tuesday, 23 Aug): 8.78 (unchanged since Wednesday, 16 March)
USD parallel market (Saturday, 27 Aug): 12.70 (sell) (up from 12.30 buy and 12.50 sell on Wednesday, 24 Aug, Fagr, Al Mal)

EGX30 (Thursday): 8,131.5 (-1.1%)
Turnover: EGP 419.6 mn (4% below the 90-day average)
EGX 30 year-to-date: +16.1%

Foreigners: Net Short | EGP -58.1 mn
Regional: Net Long | EGP +1.6 mn
Domestic: Net Long | EGP +56.5 mn

Retail: 58.8% of total trades | 63.5% of buyers | 54.1% of sellers
Institutions: 41.2% of total trades | 36.5% of buyers | 45.9% of sellers

Foreign: 23.0% of total | 16.0% of buyers | 29.9% of sellers
Regional: 3.6% of total | 3.9% of buyers | xx% of sellers
Domestic: 73.4% of total | 80.1% of buyers | xx% of sellers

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PHAROS VIEW

Orascom Construction 2Q16: Stable earnings and profitability; Awards and net cash position a positive surprise; “Add” on FV of USD7.60

Strong backlog addition is the key positive highlight this quarter for Orascom Construction, where consolidated backlog grew 4.8% (USD2.2 billion) to USD 7.5 billion. Tap here to read the full research note, highlights of which include:

  • Awards; cash management and lower leverage are key positives
  • Healthy executions reflect on revenue; margins lifted by MENA region
  • Net cash position improved on debt reduction; CFO turns positive on WC management
  • No further losses expected from IFCo; Debt might increase towards year end
  • We recommend an “Add” on FV of USD7.60; Devaluation is your upside
  • Orascom Construction is a play on infrastructure spending and devaluation in Egypt
  • Our fundamental FV is c. USD7.60; Official exchange rate is your upside
  • Our assumptions are conservative on backlog and margin fronts
  • Stock is trading at discounted multiples compared to peers; Cash is 37% of market cap

***

WTI: USD 47.64 (+0.65%)
Brent: USD 49.92 (+0.50%)
Natural Gas (Nymex, futures prices) USD 2.87 MMBtu, (+0.88%, Sep 2016 contract)
Gold: USD 1,324.0 / troy ounce (-0.14%)

TASI: 5,976.9 (-0.9%) (YTD: -13.5%)
ADX: 4,519.8 (+0.2%) (YTD: +4.9%)
DFM: 3,492.2 (+0.3%) (YTD: +10.8%)
KSE Weighted Index: 348.4 (-0.2%) (YTD: -8.7%)
QE: 11,134.8 (-0.5%) (YTD: +6.8%)
MSM: 5,823.0 (-0.5%) (YTD: +7.7%)
BB: 1,146.4 (-0.6%) (YTD: -5.7%)

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.