Egypt Travel Report: Stock Market Discount Widens Despite Numerous Recovery Signals

Ghabbour Auto: Hyundai Motor's Gateway to Egypt & A Major Turnaround Story

Egypt's Economic Progress in 2018: Challenges and Opportunities to Examine Moving Forward

Frontier and emerging markets (Vietnam)

Dylan Waller

Thematic (Sector/Industry)

Egypt Health care / Thematic (Sector/Industry)

Improved Macro/Stock Market Outlook: As I outlined in <a href="https://www.smartkarma.com/insights/egypt-travel-report-stock-market-discount-widens-despite-numerous-recovery-signals" target="_blank" data-smartkarma-citation="insights:27381">Egypt Travel Report: Stock Market Discount Widens Despite Numerous Recovery Signals</a> and <a href="https://www.smartkarma.com/insights/the-global-significance-of-egypt-s-improving-macro-picture-and-sovereign-discount" target="_blank" data-smartkarma-citation="insights:27558">The Global Significance of Egypt’s Improving Macro Picture and Sovereign Discount</a> Egypt's economy has improved substantially in the past 2-3 years and the stock market trades at a discount to its historical norm (the market is actually cheap compared to 2016 when the devaluation took place).  I believe the poor performance of emerging markets in general during 2018 has created a solid entry point for equities in Egypt.  I had the opportunity to spend around 30 days in Egypt late last year and was impressed with what I saw on the ground, particularly the rebound in tourism. Initial insight on GB Auto: <a href="https://www.smartkarma.com/profiles/342" target="_blank" data-smartkarma-citation="accounts:342">Douglas Kim</a> kicked off this company insight series with an insight called <a href="https://www.smartkarma.com/insights/ghabbour-auto-hyundai-motor-s-gateway-to-egypt-a-major-turnaround-story" target="_blank" data-smartkarma-citation="insights:27465">Ghabbour Auto: Hyundai Motor's Gateway to Egypt &amp; A Major Turnaround Story</a> ,which highlighted how this auto company is an appropriate way to play Egypt's macro turnaround.  GB Auto is the largest automotive manufacturing company in Egypt and distributes Hyundai motor vehicles.  The company has seen improved financial performance in recent years and Egypt is also approaching a sweet spot for automotive sales (namely when a country's GDP per capita is between US$5,000 and US$12,000).  Why I think Cleopatra Hospitals Group stands out: <a href="https://www.smartkarma.com/entities/27933" target="_blank" data-smartkarma-citation="entities:27933">Cleopatra Hospital (CLHO EY)</a> is the largest publicly listed private hospital operator in Egypt and has aggressive expansion plans for the coming years, which includes new hospitals and polyclinics.  Investing in the healthcare industry itself is a very defensive play, as rising incomes will result in increased private healthcare moving forward.  Egypt's improved macro picture coupled with favorable demographic trends will allow healthcare to continue outpacing GDP growth.

Improved Macro/Stock Market Outlook: As I outlined in Egypt Travel Report: Stock Market Discount Widens Despite Numerous Recovery Signals and The Global Significance of Egypt’s Improving Macro Picture and Sovereign Discount Egypt's economy has improved substantially in the past 2-3 years and the stock market trades at a discount to its historical norm (the market is actually cheap compared to 2016 when the devaluation took place).  I believe the poor performance of emerging markets in general during 2018 has created a solid entry point for equities in Egypt.  I had the opportunity to spend around 30 days in Egypt late last year and was impressed with what I saw on the ground, particularly the rebound in tourism.  Initial insight on GB Auto: Douglas Kim kicked off this company insight series with an insight called Ghabbour Auto: Hyundai Motor's Gateway to Egypt &amp; A Major Turnaround Story ,which highlighted how this auto company is an appropriate way to play Egypt's macro turnaround.  GB Auto is the largest automotive manufacturing company in Egypt and distributes Hyundai motor vehicles.  The company has seen improved financial performance in recent years and Egypt is also approaching a sweet spot for automotive sales (namely when a country's GDP per capita is between US$5,000 and US$12,000).   Why I think Cleopatra Hospitals Group stands out: Cleopatra Hospital (CLHO EY) is the largest publicly listed private hospital operator in Egypt and has aggressive expansion plans for the coming years, which includes new hospitals and polyclinics.  Investing in the healthcare industry itself is a very defensive play, as rising incomes will result in increased private healthcare moving forward.  Egypt's improved macro picture coupled with favorable demographic trends will allow healthcare to continue outpacing GDP growth.

Healthcare in Egypt with a Focus on Cleopatra Hospitals Group