Pre-Trading Thoughts

1Q2022 Results Expectations| Aaggregated profits will surge 30% YoY, and remain stable QoQ; For FY2022, aggregated profits will rise 26% YoY; Stocks that will witness a shift in performance: EGCH, EGAL, ABUK, AMOC, ARCC, DOMT, DSCW, AMER, MNHD, EFIHFinance Ministry could set oil prices at USD 80-85 a barrel in the FY 2022-2023 budgetMinister of Finance noted that Egypt is preparing to issue the first sovereign Sukuk offering before the end of the current fiscal yearEBRD has downgraded Egypt’s 2022 growth outlook due to rising food and energy price inflation caused by the conflict in Ukraine to 3.1%, down from the 5.0%Foreign Minister called on the EU for support, asking France to back Egypt in talks with both EU and international financial institutionsSuez Canal revenues rose 20% y-o-y in 1Q 2022 to USD 1.69 bn and is targeting revenues of USD 7 bn from the canal in 2022, after hitting a record USD 6.3 bn in 2021The potential gas pipeline between Turkey and Israel is not happening anytime soon; Israel is relying on Egypt and its LNG facilities for nowEgypt has widened the number of people eligible to obtain a visa on arrival as it looks to support the tourism sectorBy June 15, the Tax Authority will start implementing the seventh phase of the electronic invoice system for companies registered in Cairo, Giza, and QalyubiaOPEC+ to increase oil production mildly in May by 432,000 barrels per day; US ordering an unprecedented release of its strategic reserves to temper prices; Brent futures trading at USD104.35/bblMinistry of Petroleum is looking into new measures to increase the natural gas feedstock cost for the industrial and petrochemicals sectors; The new natural gas pricing strategy will be determined through a formula that is linked to global commodity pricesESRS raised the price of rebars, again, by EGP 3,000/ton (+18% MoM) to EGP 20,000/ton (including VAT) as of April 2, 2022Cabinet is looking into the final decisions for the bid for new steel licensesSovereign Fund of Egypt (SFE), Norway’s Scatec, Fertiglobe, and Orascom Construction signed an agreement to establish and operate their planned 100 MW green hydrogen plant in Ain Sokhna FAB is considering submitting a new tender offer to acquire a stake in HRHO, with a value exceeding EGP20 per shareAMIC: Passenger car sales rose more than 20% YoY in February 2022, recording 19.7 thousand passenger cars, up from 16.3k in February 2021DOMT released positive net profit for 4Q21 came in at EGP55 mn (+5.2% QoQ, +3.9% YoY) backed by trickling down of healthy top-line; Net profit for FY21 reached EGP72 mn (-54.2% YoY); DOMT is currently trading at FY22 P/E of 6.0x and EV/EBITDA of 6.0OIH released 2021 loss from continued operations of EGP86.4 million in 2021(-45% y/y). The significant decline in losses compared to last year was mainly supported by the settlement agreement between OIH and Victore Investment worth EGP200.1 million and the positive FX differences; BoD announced focusing on Africa-based Investments in the renewable energy and real estate touristic development industries over 2022BINV released 2021 financial results, with a consolidated attributable net income of EGP123.4 million, compared to EGP222.7 million in 2020 (-44.6% y/y); BINV BOD has proposed distributing DPS of EGP0.50, DY of 7%; BINV is currently trading at P/E22 of 10.6x and P/B22 of 0.9xAIH released 2021 financial results, where consolidated net income stood at EGP103 million (+7.7% y/y); AIH is currently trading at P/E22 of 4.4x and P/B22 of 0.6xEgyptAir has signed a partnership agreement with Valu and PayTabs Egypt, to finance airline ticket purchasesIFC and its IFC MENA Fund have together raised their stake in IDHC to 5%Egyptian Drug Authority has received accreditation from World Health Organization for its locally produced covid vaccine, whi