Pre-Trading Thoughts

Ministry of Finance decided to reduce the burdens of the capital gains tax on local stock exchange investors, by deducting all expenses related to trading as well as an incentive for the funds invested in the stock exchange from the tax base in case profits are achievedAnnual core inflation recorded 5.2% in October compared to 4.8% in SeptemberETEL reported 9M21 net profit came at 6.09 billion, +72.5% YoY; We upgrade our valuation of ETEL to EGP18.00/share; Telecom Egypt is currently trading at 2022f P/E of 3.3xe-cards, a subsidiary of e-finance, signed an agreement with Premium Cards to produce and manage their smart cards Vodacom Group has entered into a binding agreement to acquire a 55% shareholding in Vodafone Egypt for a total equity consideration of USD2.738 billion; Vodacom Group has committed to Vodafone that it will sign a deed of adherence to the shareholders’ agreement with Telecom EgyptWe downgrade our FV on ABUK to EGP21.31/share, with equalweight recommendation; ABUK is trading at FY21/22 P/E of 6.0x and EV/EBITDA of 3.1xWe upgrade our FV on MFPC to EGP113.66/share, maintain an overweight recommendation; MOPCO is trading at 2022 P/E of 5.2x and EV/EBITDA of 3.3xHDBK 9M21 standalone bottom line at EGP 1,434 million (+1% y/y); The stock is currently trading at 2.9x P/E22 and 0.5x P/B22 with ROAE of 18%EGBE 9M21 net income at EGP507 million (+9% y/y); EGBE is currently trading at annualized P/E21 of 4.78x and annualized P/B21 of 0.49xAUTO has begun formulating alternative sales strategies to mitigate loss of Tuk-tuk salesECAP reported solid 3Q21 net profit at EGP31 million, compared to EGP13 million the previous quarter; ECAP is currently trading at FY2022 P/E of 8.0x and EV/EBITDA of 5.7xThe executive framework for PORT and AMER’s legal right to compensation of USD39.9 million and 5.0% interest calculated from 11 October 2014, has been set by the courtCabinet approved amendments to shorten the home registration process   The transport ministry signed an MoU with Hong Kong’s Hutchison Port to operate a multi-purpose station in Dekheila Port; Threatens ALCN’s profitability and market share