Raya holding sells EGP 746M stakes in Ostool & Aman Payment

April 26, 2021

EGX 30: 10,600 (+4.5%) weekly change, (-2.5%) YTD
Traded Value 1W Avg: EGP 283M, (-46.1%) below 90D Avg.  
EGP:USD: 15.63 (-0.5%) weekly change

Local Pick-ups

Raya sells stakes in Ostool & Aman Payment

Raya holding for financial investment has made two major exits as it sold 62.3% stake in Ostool, a leading logistics services company for EGP 266.5M to paradigm logistics. It also sold a 24% stake in Aman Payments for EGP 480M to the national bank of Egypt. (Reuters)

m to manufacture Russian Covid-19 vaccine

Minapharm has signed an agreement with the Russian direct investment fund to produce over 40M doses of the Russian vaccine Sputnik V. The trial phase is expected to start in Q3 of 2021. (Reuters)

EIPICO & Kambal to build a USD 30M plant in Sudan

Egyptian International Pharmaceutical industries (EIPICO) has partnered with Kambal to build a USD 30M plant in Sudan. The companies plan to finish the plant construction within two years. Both companies invested USD 9M each for the establishment. (Zawya)

Other Local Headlines

  • FRA announces final list of Alexandria new medical center potential buyers
  • FRA announced Speed Medical fair value to be EGP 2.75 per share
  • Egypt increases its fuel prices by 25 piasters

Global Pick-up

Apple hosted its first event in 2021

Apple launched a ton of new products including AirTags, new Apple Card family sharing, a new Apple TV, a new set of colorful iMacs, and a purple iPhone 12 shade. The firm is increasing the number of products that contain its own in-house developed M1 chip, as the sector struggles with a global semiconductor shortage. (Techcrunch)

Featured Opportunity

Juhayna Food Industries –  Juhayna is a leading Egyptian manufacturer specialized in the production, processing & packaging of dairy, juice, and cooking products. The company has achieved a 29% 3Y Net Income CAGR, 12% ROE, and has a Net Debt to Equity of 0.51x. Research analysts also suggest an EGP 10.12 target price, creating a potential upside of +80%.

Word of the week – Gross Margin

Gross margin represents the portion of revenue that the company retains as gross profits. It is the difference between revenues and the cost of goods sold, divided by revenues. Higher profit margins generally indicate better financial & operational status.

Book of the week – When genius failed

Arrogance & greed are the worst enemies of any investor, even if he’s a Nobel prize winner. The book tells the story of LTCM, a hedge fund managed by brilliant finance academics including two economics Nobel prize winners. The fund has achieved tremendous initial success followed by a catastrophic failure, due to arrogance and greed.

Earnings Call:

  • Memphis pharmaceutical reported 9 months profits of EGP 25.4M, a 388% YoY increase
  • Nile City investment reported 9 months profit of EGP 35.3M, a 95% YoY decrease