Pre-Trading Thoughts

We published this morning the earnings expectations for companies under coverage in 2Q2022/FY2022: 1) For 2Q2022, aggregated profits will surge 44% YoY, and remain stable QoQ, 2) For FY2022, aggregated profits will rise 31% YoY, 3) Stocks that will post stand-out results sequentially in 2Q22: HELI, ESRS, IRAX, ETEL, CCAP, 4) Stocks that will witness a shift from losses to profits YoY as of 2022: CCAP and EGCHGeneral Authority for Investment and Free Zones' CEO met with a Qatari investor delegation to discuss investment opportunities in the fields of the industrial sector, agriculture, financial services, and construction.Egypt and Oman signed 6 MoUs and several cooperation agreements in a number of fields throughout El Sisi's visit to Oman. Minister of Petroleum discussed with the Prime Minister a number of petrochemical projects that have the potential to attract private investment. Egypt awarded BP an offshore exploration block in the western Mediterranean’s King Mariout Offshore concession.Minister of Finance said that inter-settlement will be allowed between the exporters' taxes due and their balance of export subsidies at the Export Development Fund.Prime Minister issued a decree setting the selling price of natural gas supplied to generate electricity at USD3/MMBtu, for electricity production companies down from USD3.25/MMBtu.EFIH partnered with the Ministry of Petroleum and Mineral Resources to develop the infrastructure for the digitization of gas stations across Egypt. Ebtikar for Financial Services, a joint venture between MTIE and BINV, postponed its planned EGX listing on challenging market conditions. Vodafone Egypt is close to acquiring an additional 10% stake in each of Bee and Masary.Passenger car sales dropped in May for the third consecutive month by 22% YoY to record 11.8k vehicles after a 9.4% YoY fall in March and 25% YoY fall in April.The government is looking into levying a 5% fee on imported gas operating PCs to promote electric vehicle sales. HELI Board approved the draft contract with Mountain View regarding the co-development of HELI's 1,695 feddan Heliopark land plot. TMGH intends to issue EGP1.2 billion in securitized bonds as part of its EGP6.0 billion securitization program.SPMD recorded a net loss of EGP38.4 million in 1Q22, due to lower Covid-related revenues and drive-through expenses which reached EGP17.2 million though its revenues are diminishing, surge in expenses and Impairment of Inventory as well as provisions. We update our FV to EGP0.56 per share.