🔔 Good morning, and welcome to Telda Lens — your daily pulse on Egypt’s markets.

Today: Obour Land and North Cairo Mills report profit dips as South Valley Cement and Arab Developers move to double their capital, while Maridive offloads a vessel for USD 5 mn.

🔔 EGX30 ended +1.39% by market close at 47,507 points, the EGX70 dropped 0.63% to 12,636 points, and the EGX100 fell 0.17%  to reach 17,283 points

💸 The number of transactions reached 149,392 spread across 1,784,516,248 stocks leading to a turnover of EGP 7.2 billion.

🏷️ Local investors were the only net sellers.

📈Top gainers across the broader market Gulf Canadian Real Estate Investment Co.(+14.48%), Fawry (+7.1%), Raya Holding (+6.3%)

📉 Top losers: Prime Holding (-6.64%), Nasr Company for Civil Works (-6.18%), Elsaeed Contracting& Real Estate Investment Company (-5.96%.)

⬆️ Top gainers for EGX30 included Fawry (+7.1%), Raya Holding (+6.3%), and GB Corp (+5.3%).

⬇️ Top losers included: Beltone Holding (-2.2%), Sidpec (-2.2%), and Palm Hills Developments (-1.6%).

Other Important Stats: 

🧈 24K Gold reached EGP 7,763 per gram, up 0.31% day-on-day and up 11.81% month-on-month.

💲 The USD reached EGP 47.02 at the National Bank of Egypt.

⬇️Obour Land’s (OLFI) net profit for 2025 reached EGP 854.18 million, a 14.58% YoY decline. This bottom-line contraction occurred despite a strong top-line performance, as sales climbed to EGP 11.12 billion The drop in profitability is attributed to surging production costs and an increase in marketing costs (Read more in our Deeper Look section.)

⬇️North Cairo Mills (MILS) reported a 30.28% YoY drop in net profit for the first half of the current fiscal year, with earnings falling to EGP 16.82 million. This decline was accompanied by a slight contraction in sales, which reached EGP 539.69 million, down from EGP 554.18 million in the corresponding period of the previous year. Despite the profit drop, it’s worth noting that the company’s share value is up 169% in the last year.

In non-earnings news:

💰The Financial Regulatory Authority approved South Valley Cement's (SVCE)  proposal to double its issued capital from EGP 2.41 billion to EGP 4.82 billion through a rights issue for existing shareholders. The EGP 2.41 billion cash increase is intended to fund a comprehensive strategic plan, including upgrading factory capacity to 2 million tons per year and settling outstanding debts with the Egyptian government and banks.

💸Arab Developers Holding’s (ARAB) Extraordinary General Assembly approved doubling the company’s issued capital from EGP 1.39 billion to EGP 2.39 billion. The EGP 1 billion increase will be conducted via a cash rights issue for existing shareholders, offering 10 billion shares at a par value of EGP 0.10 each.

💵Maridive’s (MOIL) board of Directors approved selling the vessel "Harmouni DUA" for USD 5 million (EGP 235.4 million). The decision follows a fair value report by RSM Financial Consulting, which appraised the ship at an average of USD 5.08 million.

📝The Finance Ministry is planning to increase budget allocations for export subsidies and industrial localization to over EGP 50 billion in the FY 2026-27 draft, a senior government official told EnterpriseAM. The strategy earmarks EGP 7 billion specifically for complex industries to help hit a USD 75 billion total export target by the end of 2026. Additionally, the government aims to slash customs clearance times to 48 hours, which could save the state USD 2.1 billion in the coming fiscal year.

🛢️Egypt plans to drill over 100 exploratory wells in 2026 to boost domestic production and slash import costs, according to Petroleum Minister Karim Badawi. New investment incentives for oil production are expected soon to help secure energy needs for the coming summer and achieve long-term self-sufficiency.The move aims to narrow the gap between Egypt’s 4.2 billion cubic feet daily production and 6.2 billion cubic feet demand, while LNG imports continue to fill the shortfall.

Obour Land for Food Industries (OLFI) reported a 14.6% year-on-year decline in consolidated net profit in 2025, with income reaching EGP 854.2 million

This profitability contraction occurred despite a robust top-line performance, with revenues surging 17.5% to reach a record EGP 11.125 billion, up from EGP 9.465 billion in FY 2024.

The company’s share value dropped 3.18% yesterday on news of its financial results, but is still up almost 33% over the past year.

Management identified several strategic and operational shifts that influenced the year's performance:

Rising costs: The decline in the bottom line was primarily driven by a sharp spike in production costs. The cost of goods sold rose by approximately 24.1% to EGP 9.04 billion, outpacing revenue growth and exerting significant pressure on overall margins.

Marketing & Brand Equity: Selling and marketing expenses grew by 85.1% year-on-year to EGP 585.5 million. This included a nationwide marketing campaign during Ramadan designed to safeguard the firm’s position in Egypt’s competitive cheese sector.

Competitive Market Tactics: Profitability was also impacted by a deliberate increase in discounts and offers provided to wholesalers to maintain market share in an increasingly competitive environment.

Looking forward, Obour Land is focused on vertical integration and high-growth segments to bolster future earnings:

Processed Cheese Expansion: A new, dedicated processed cheese factory became operational in December 2025. Built with a USD 4 million investment, this facility has tripled the company’s production capacity to meet booming international and domestic demand.

New Yellow Cheese Project: Management has approved the establishment of a new yellow cheese factory at Obour Farm. Expected to be operational by 2027, the facility will produce premium items such as Cheddar and Gouda with an estimated investment of EGP 120–150 million.

In other news from the company:

Following the release of the company’s financials, the firm’s  board proposed a cash dividend of EGP 1.50 per share (totaling EGP 600 million) for shareholder approval.

Stay curious, stay invested — we’ll see you tomorrow.

Your daily market lens, signing off.