Pre-Trading Thoughts

-EKHO| Buy Ambition, Diversity, and Strategy. EKHO expects to register total profits of USD170m in 2021 and targets growth rates of 20-25% based on future expansion plans; Sprea will double its production capacities; Nat Gas will benefit from Haya Karima Initiative; Kahraba will add 40 MW to its capacity; Alex Fert’s net profit shall be within USD40-50 mn; ONS profits c.USD30 mn; Delta & Mohandes Insurance targeting  20% YoY growth; EKHO has high growth plans for the consumer finance arm over the next five years; DPS is USD0.07 out of 2021 profits, DY of 5.5% on USD; EKHO is trading at2022 P/E of 8.2x; OW on FV of USD1.97/EGP31.00 -Brent declined 0.8% to reach USD91.96/bbl due to the negotiations between Iran and USA that may lead to a nuclear agreement-World Bank says tourism rebound, gas exports driving strong real GDP growth in Egypt, to 5.5% in FY2021/22 -Egyptian Central Depository and Registry will start operations by the end of 3Q2022, as a step towards listing government securities on the Euroclear international settlement platform -HRHO’s Valu aims to double its Gross Merchandise Value (GMV) to EGP5 billion in 2022 compared to EGP2.3 billion in 2021, by increasing the number of transactions on its platform to one million in 2022 from 452,000 in 2021 -FRA has set out responsible lending principles for non-bank SME financing products ensuring it acts in borrowers’ best interests -Khales of EFIH obtained FRA's approval to offer insurance payment collection services through the company’s network of 13 partners over 330 PoS spread across the country -MCRO’s IPO has been executed on EGX; Trading starts tomorrow -House of Representatives is set to discuss in a plenary session today a draft law that would, if passed, allow landlords to evict or revise the terms of the rent contract with institutional tenants (HELI) -ZMID AGM approved a EGP264.0 million capital increase through 1:1 bonus share -CSAG released 1H21/22 bottom line which dropped 27% YoY to record EGP71 million on the back of a decline in investment income from both Port Said and Damietta Containers companies; CSAG is trading at an annualized P/E of 19.9x