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Edita acquires a new bakery production line

EGX 30: 10,279, weekly change ( 4.2% ), YTD (-5.0%)
Traded Value 1W Avg: EGP 555M, ( +20.0% ) above 90D Avg.
EGP:USD: 15.67 (+0.1% ) weekly change

Local Pick-ups

Edita acquires a new bakery production line

Edita Food Industries announced the acquisition of a new bakery production line. The new line comes at an investment cost of EGP 135M and it is expected to launch by February 2022. The new line is set to expand Edita’s bakery annual production capacity by 11 thousand tons, representing a 6.5% increase in their total capacity. The production line will allow the company to meet the growing demand for its Molto products. (Press Release)

Raya Holding to increase stake in Makarony Polskie to 24.3% from 19.4%

Raya Holding for financial investments’ board has authorized its wholly-owned subsidiary Madova Sp. Z.O.O. to proceed with the acquisition of 4.99% of Makarony Polskie for USD 830K. The company agreed to subscribe to the rights issue of Makarony Polskie to finance its investment and expansion plans. During Q1 2021, Raya Holding turned profitable to EGP 35.8M, against net losses of EGP 68.8M in the year-ago period, including minority shareholders’ rights. (Arab Finance)

CIB appoints Hussein Abaza as CEO and Managing Director

Egypt’s Commercial International Bank (CIB) announced on Thursday, the appointment of Hussein Abaza as CEO and Managing Director of the Bank after receiving the Central Bank of Egypt (CBE) approval. (Press release)

Other Local Headlines

  • Azimut Opportunity Fund has closed its subscription yesterday
  • Telecom Egypt inks four agreements with Libyan firms
  • EGX approves listing of capital increase of Fawry, new shares to be listed on June 29, 2021
  • Zeta Investments to acquire a majority stake in Alexandria National Company for Financial Services
  • Prime Minister of Egypt launches Tamayoz index
  • Contact Financial Holding, formerly Sarwa Capital, completed requirements for establishing an e-payment solution company with initial capital of EGP 50M

Global Pick-up

BuzzFeed is going public via SPAC

Buzzfeed, a 15 years old American internet media company is going public through a merger via SPAC. The IPO will strengthen the company’s position to make multiple acquisitions as it plans to acquire Complex Network and other companies for expansion. Buzzfeed targets a USD 1.5B valuation in their IPO. (CNBC)

Featured Opportunity

Cairo for Investment & Real Estate Development – CIRA is a leading provider of educational services in the Egyptian private sector. It operates 21 schools and owns Badr University in Cairo. CIRA was one of our top 10 factor investing picks for June 2021 with a 3.89 / 5.00 score.

Word of the week – Value Stock

Value stocks are securities that are traded at lower prices than the companies financial performance might indicate, making them attractive opportunities for value investors. Value stocks typically have low Price-to-Book (P/B) and Price-to-Earnings (P/E) ratios.

Book of the week – Growth: From microorganisms to megacities

Written by Vaclav Smil, the author investigates the laws of growth in both nature and society, from tiny organisms to the trajectories of empires and civilizations. The book digs into a variety of disciplines like biology, engineering, history, economics & urban planning.

Earnings Call:

  • Qalaa Holdings reported net losses of EGP 478.6M in Q1 2021, 18% YoY increase.
  • Misr Chemical Industries reported net profits of EGP M, a 157.5% YoY increase 11 months.