What drove the stock higher recently: Earlier this week, Egypt Aluminum (EGAL) revised its FY2019/20 budget to post a net profit of EGP107mn rather than the EGP342mn net losses previously projected. The positive revision came on the back of lower-than-expected electricity cost (EGP1.11 per kWh, compared to EGAL’s old estimate of EGP1.20 per kWh). The stock rallied on this news, but we do not see that as a catalyst for the time being as the stock just got pricey. That said, good things can come to those who wait.
For more details, please read the full report below.