Pre-Trading Thoughts

Government planning incentives to support the businesses: Extending the current freeze on natural gas prices for four years; A new incentive program for local auto assemblyGovernment targets in FY21/22 a primary surplus of 1.5% of GDP, reduce the total deficit to 6.7%, and reach growth of 5.4%Egypt will be looking to tap international debt markets again in February or March 2022Remittances in 7M 2021 increased by 10.2% to record about USD18.7 billionHouse of Representatives gave preliminary approval to proposed amendments to the Public-Private Partnership (PPP) Act and a draft law to regulate Egypt’s fintech sectore-finance retail offering was 61.36x oversubscribed;The institutional offering was 6.8x oversubscribed; Trading is to start on Wednesday 20th of October e-finance and The Universal Health Insurance Authority launched “e-health” ETEL and Nokia signed an agreement to build the first infrastructure in Egypt offering the internet of things services  EASTreports weaker than expected results for FY2021 due to high provisions recorded; EAST is trading at FY21/22 P/E of 4.8x and EV/EBITDA of 2.6xWe update our valuation for POUL with a FV of EGP4.50/Share, POUL is trading at 2022f P/E of 9.5x, 2022f EV/EBITDA of 6.0x, DPS of EGP0.27, reflecting a dividend yield of 8.0%SPMD signed a contract for managing and operating the drive-throughs directly and without an intermediarySWDY signed an EGP178 million contract to build a transformer station for Zayed's monorail.PHDC Board approved a EGP1.1 billion receivables securitization.TUI is targeting operating 40 trips from the UK to Sharm El Sheikh and Hurghada EGBE plans to sell 5 of its subsidiaries