Egypt | EGX

Egyptian Fertilizers Industry: Higher natural gas prices partially offset by higher urea prices.

The Egyptian pharmaceuticals industry is defensive in nature and enjoys high potential growth supported by an aging population and a prevalence of chronic diseases along with government initiatives of free screening for chronic diseases We expect the Egyptian pharma market to grow at a 5 year CAGR 2020 2025 of 11 8 supported by a 9 6 growth in average selling prices on medicine substitution and the launch of new molecules The local market is underpenetrated in terms of medical insurance, with a low per capita pharma spending of just USD 216 compared to an average of USD 520 in the MENA region, according to the World Bank Government expenditure as a percentage of GDP is merely 4 2 but the government s target is to avail medical insurance to all population by 2032 through the implementation of the Universal Health Care Law ...

Al Baraka Bank Egypt (SAUD EY) recorded a net income after minority of EGP611.88mn in its consolidated H1 2021 results, reflecting a 12.5% YoY growth and strong ROAE of 23.14%. Said growth came from a 14.1% YoY increase in the bank’s net interest income to EGP1.36bn in H1 2021 with a NIM of 3.95%, in addition to escalating non-interest income by 30.4% YoY. This noticeable increase resulted mainly from a 15.1% YoY decline in the bank’s interest expense vs. a 6.1% YoY decrease in its interest income. The decline in Al Baraka’s interest income as well as interest expense came corresponding to the minimal up in the bank’s net loans portfolio by 0.83% YTD, in addition to dropping financial investments by 35.7% YTD, compared to a significant hike in the bank’s due from banks vs. a slight rise of 1.8% YTD in customer deposits. Al Baraka Bank managed also to demonstrate enhanced efficiency ratio with a Cost to income ratio of 24.06% in H1 2021 maintaining its level in comparison to last year figure.

Arab Ceramics – Ceramica Remas (CERA EY) posted, few days ago, its financial results for H1 2021 recording a 65% YoY surge in revenues to EGP421.4mn on estimated growth in both volumes sold and selling prices. Revenues grew at a 5-year CAGR of 9.3% during the period 2015-2020. Pre 2019, local sales contributed more than 70% of total revenue. The company’s exports started to remarkably increase since 2019 to constitute an average of 57% of total sales during the past two years. Historically, tiles represented an average of around 75% of the company’s total sales while the remaining 25% is from sanitary ware sales.

The outbreak of Covid-19 hit sales ...: We updated our model for Palm Hills Developments Company (PHDC) to account for the current challenges in the real estate sector due to the outbreak of the Covid-19. In 2020, PHDC recorded net contracted sales of EGP7.1bn (-30.1% YoY), as per our calculations, which is 32% lower than our old estimates of EGP10.5bn. We highlight ...

During the mandemic aluminum prices fall on lower demand: With the spread of the pandemic, aluminum prices, as was the case in other base metals, has fallen by more than 20% from an average of USD1,794/tonne in 2019 to a more than a decade low of USD1,426 on April 8, 2020. The price fall was highly affected by ...