Pre-Trading Thoughts

COMI's 4Q21 net profit recorded a robust EGP3.37 billion (+16% y/y); FY21 bottom line to EGP13.27 billion (+30% y/y); FY21 net profit was supported by a lower effective tax rate coupled with significantly lower provisions (-67% y/y); Stock is trading at P/E 2022of 7.2x and P/B 2022 of 1.2xGoldman Sachs and law firm White & Case will advise HRHO’s BoD on the acquisition by FAB; The board also gave the go-ahead for FAB to conduct due diligence on EFG, pending approval from regulatory bodiesCIEB 4Q21 consolidated net profit pre-minority and appropriations recorded EGP429 million, +28% y/y, bringing FY21 bottom line to EGP 1,609 million (+17% y/y). On a full-year basis, the bottom line supported by: 1) healthy interest and non-interest income growth, 2) controlled OPEX, 3) lower booked provisions, and 4) lower effective tax rate; BoD proposed cash dividends distribution of EGP 0.99/share , DY of 12%; Stock is trading at attractive multiples with P/E22 of 6.5x, and P/B22 of 1.1xATLC 4Q21 net income recorded EGP17 million (-11% y/y), bringing 2021 full-year net income to EGP134 million (+81% y/y); FY2021 bottom line recorded EGP134 million (+81% YoY), due to securitization gains booked in 1Q21 amounting to EGP65 million; OD has proposed cash dividends of EGP0.93/share implying a dividend yield of 14.5%; Stock is trading at P/B22 of 0.9x and P/E22 of 4.1x, on an ROE of 25%JUFO assigns Niels Thomsen as the new group CEO; JUFO is currently trading a FY22 P/E of 10.9x and an EV/EBITDA of 4.4xCIRA along with Al Ahly Capital are planning to finance half of Cairo Saxony Tech University from internally generated funds; CIRA will contribute 60% ESRS applied for a number of steel manufacturing licensesATQA announced applying for a billet license with an annual production capacity of 1.1 million tons, and an investment cost exceeding EGP4 billionFWRY announced signing an agreement to co-found “Roaderz”- an innovative crowdsourcing platform that will connect individual couriers and small delivery operations with eCommerce merchants and social sellers; The value of the investment will be disclosed in the 4Q21 financialsThe House of Representatives gave preliminary approval to a draft law that would allow landlords to evict or revise the terms of the rent contract with institutional tenants that have been protected by the old rent law. HELI is a key beneficiaryFRA’s prosecution on SPMD’s conflicting disclosures of Prime Speed and Al-Safwa hospital has been postponed to 28 February 2022. SPMD is currently trading at 2022f P/E of 8.9x and EV/EBITDA of 6.4x.Weekly Commodity Update:Brent futures are trading at USD96.73/bbl and averaged USD88.54/bbl YTDThe Egypt Urea Index declined by 38% WoW and prices are currently at USD555/tonPolyethylene (HDPE) prices dropped by 5% WoW and prices are currently at USD1,320/tonPolypropylene prices climbed WoW to reach USD1,255/MT Diesel-HSFO spreads were unchanged WoW and are at USD328/tonSteel/Iron Ore spreads were higher 4% at USD436/ton LME 3M Fwd Aluminum prices came up 4% WoW at USD3,263/ton Retail cement prices in Egypt remained stable at EGP1,200 -1,250 per tonThermal coal prices were unchanged WoW recording USD219/tonCrude palm oil climbed to reach USD1,411/MT, +2.0% WoWSMP prices rose by 6.0% to reach USD4,295/MT