From the trading floor

Sherine Abdel-Razek , Tuesday 9 Nov 2021

From the trading floor
From the trading floor

Cairo for Investment and Real Estate Development (CIRA): The leading provider of education services recorded a 27.8 per cent increase in revenues in the 2020-21 fiscal year to reach LE1.36 billion. The increase was fed by robust growth in higher-education revenues at its Badr University in Cairo (BUC) by 52 per cent as well as by steady growth in K-12 tuition revenues by five per cent, according to a research note by Al-Ahly Pharos, an investment bank.

The revenues of the higher-education segment soared by 52 per cent to reach LE813 million due to a jump in tuition fees resulting from a sharp increase in student enrolment on the back of the addition of three new operating faculties this year, bringing the total number to 13. BUC student capacity grew by 29 per cent to 19,000 students. K-12 revenues for the year inched up by 4.7 per cent to LE578 million, as an increase in tuition fees was able to offset a drop in other revenues caused by a lack of construction income and a reduction in bus fees.

CIRA’s K-12 segment includes 21 schools including big names like Futures, Maverick, and Regent British schools. Al-Ahly Pharos gave CIRA shares an overweight recommendation, advising investors to invest in them. The recommendation is based on CIRA’s expansion plans, which will contribute significantly to its revenues. The new ventures include Badr University in Assiut (BUA), which is expected to be launched in February next year. The company is also planning to establish the Cairo Saxony University for Applied Sciences and Technology in partnership with Al-Ahly Capital in 2023. It is planning to establish the New Damietta University in partnership with Al-Sewedy Capital in 2023.

Alexandria Containers and Cargo Handling (ALCN): The company witnessed a 20.2 per cent drop in its revenues in the first quarter of 2021-22 compared to the same quarter last year to record LE538 million. Established in 1984, ALCN was the first specialised container-handling facility in Egypt. The company operates two main terminals, the Alexandria Terminal at the Alexandria Port and the Dekheila Terminal at the Dekheila Port.

The slowdown in world trade due to the global energy crisis and the resulting rise in shipping and logistics costs is believed to be the main reason behind the decline in revenues. This has been manifested in a 10 per cent decline in the number of containers handled during the quarter to reach 181,000. Moves to raise service fees and control costs were not enough to support revenues. The effects of the first phase of operations to deepen the Dekheila Terminal will not be felt until the Covid-19 pandemic is over.

According to Al-Ahly Pharos, ALCN may face fierce competition as new logistics companies share the Port with them and are expected to start operations by mid-2022. “What might save ALCN from taking a strong hit is the end of phase two of the Dekheila Terminal’s Quay 96 deepening project, which is expected by May 2022 at a cost of LE261 million,” a research note said.


SWVL: The mass transportation startup is to pump $25 million of investment in 2022 to support the company’s local engineering team. Now located in Dubai, SWVL was founded in Egypt in 2017 and operates a digital platform that allows users to book rides with bus operators along fixed routes. It has a global expansion plan for which it is allocating $300 million until 2025.

In August, SWVL bought Shotl, a Spanish ride-hailing service for bus and van operators that caters to municipalities, corporations, and educational institutions. Shotl will be SWVL’s hub in Europe and will double the company’s markets in 22 cities across 10 countries, including Brazil and Japan.

SWVL has a network of 5,000 buses, 3,000 of which are in Egypt. It plans to expand into other activities such as logistics, advertising, and financial services at the beginning of 2023. It is pursuing plans to be listed on the Nasdaq Index in New York by the end of 2021.

*A version of this article appears in print in the 11 November, 2021 edition of Al-Ahram Weekly

Short link: