KEY THEMES
Misr Chemical Industries’ [MICH] unaudited indicators showed a robust earnings growth to EGP82mn (+460% y/y) in H1 2020/21, thanks to top-line growth and electricity price cut. MICH has been booking an average monthly bottom line of c.EGP14mn during H1 2020/21, achieving 58% of our target earnings for 2020/21 already. While we factored in our projection a normalization in selling prices during H2 2020/21, the sustainability of a second wave of the COVID-19 pandemic could raise our bottom-line projection for 2020/21 by 10% from EGP141mn to EGP155mn. This implies a 2020/21 P/E of 5.2x-5.7x for MICH at current market price. We remind you that we rate MICH as Overweight with a 12M PT of EGP13.9/share (ETR +26%).