Orascom Investment Holding to sell TWA

May 03, 2021

EGX 30: (10,475), weekly change (-1.2%), YTD (-3.4%)
Traded Value 1W Avg: EGP 269M , (-46.2%) below 90D Avg.  
EGP:USD: 15.61(-0.6%) weekly change 

Local Pick-ups

Orascom Investment Holding to sell 51% stake in TWA

Orascom Investment holding will sell 100% of its stake in Transworld Associates (TWA), which represents 51% of the company. OIH will hire an independent financial advisor to set the fair value of the company. (Company statement)

Raya Holding to sell BariQ at close to EGP 500M

Raya Holding for Financial Investments to sell 100% stake of BariQ, a plastic recycling company & subsidiary of Raya Holding, to Intro Group owned by Mamdouh Abbas. The sale could value BariQ at close to EGP 500M. (Alboursa news)

Orascom Construction adds USD 650M to its backlog in Q1 2021

Orascom Construction announced that it has added USD 650M of new awards to its backlog in Q1 2021, a 8% YoY increase, compared to the awards level in Q1 2020. Projects in Egypt represents 85% of the new awards as the group has added contracts across the healthcare, infrastructure & commercial sectors. (Company statement)

Other Local Headlines

  • Egypt will embark on a 3 year structural reform program designed to support a private sector-led economic growth.
  • The Central Bank of Egypt decides to leave interest rates unchanged.
  • Elsewedy electric signed a contract to establish the delta regional control center with the Egyptian Electricity Transmission Company.
  • Naguib Sawiris resigns as Orascom Investment holding chairman

Global Pick-up

Verizon to sell Yahoo & AOL for USD 5B

Verizon has decided to end its experiment with media production & advertising and sell Yahoo and AOL businesses to private equity firm Apollo Global Management for USD 5B, nearly half of it has paid for. Verizon will keep a 10% stake in the company and it will be rebranded to just Yahoo. The sale signals that Verizon will focus on its internet-provider businesses as rivals continue to explore media. (CNBC)

Featured Opportunity

Oriental Weavers Carpet – Oriental Weavers manufactures and sells carpets, rugs, and related raw materials worldwide. The company has a 3 year Net Income CAGR of 36% and a PEG ratio of 0.12

Word of the week – PEG Ratio

The price/earnings to growth ratio (PEG ratio) is the price-to-earnings (P/E) ratio of the company divided by the growth rate of its earnings during a period of time. The PEG ratio is used to determine a stock’s value while also factoring in the company’s expected earnings growth, and it is thought to provide a more complete picture than the more standard P/E ratio.

Book of the week – The Psychology of Money

Most people think success in investing is about knowledge and experience, yet this book has a premise that financial success is all about how do you behave, not how much do you know. The book discusses how can you acquire the soft-skills of investing, which the author prefers to name as “Psychology of Money”.

Earnings Call:

  • Abu Qir Fertilizers reported net profits of EGP 2.4B in the first 9 months of fiscal year 2020/2021, a 14.5%. YoY increase.
  • Egypt Aluminum reported net losses of EGP 347.7M in the first 9 months of fiscal year 2020/2021, a 65.9% YoY decline.