Pre-Trading Thoughts

Pitch: ARCC| An Efficient Player in Tough Times; Upgrade FV to EGP9.94/share. We expect a healthy growth in cement prices (5-year CAGR of 14%, compared to a CAGR of 3% previously), driven mainly by a 50% hike in 2023 to cover up the soaring coal and pet coke prices post currency depreciation. ARCC is enjoying an efficient energy mix (pet coke and alternative fuels fulfill around 80% of ARCC’s energy requirements, a cheaper alternative to coal). We expect ARCC to maintain a solid GPM of 20% in...