Net income – EGP106mn, +26% Y-o-Y, -9% Q-o-Q, N/A vs. EFGe Recurring earnings – EGP115mn, +35% Y-o-Y, -12% Q-o-Q, N/A vs. EFGe Revenue – EGP460mn, +12% Y-o-Y, -6% Q-o-Q, N/A vs EFGe Gross profit – EGP253mn, +21% Y-o-Y, +2% Q-o-Q, N/A vs. EFGe Net operating profit – EGP138mn, +21% Y-o-Y, -2% Q-o-Q, N/A vs. EFGe   Egyptian International Pharmaceutical Industries Company (EIPICO) reported a solid sets of results in 2Q16, showing recurring earnings (excluding FX gains/(loss) and provisions) growth of 35% Y-o-Y on a standalone basis (consolidated numbers are not published yet). We forecast recurring earnings of EGP104mn on consolidated basis, driven by higher revenue and margins. Standalone reported earnings were up 26% Y-o-Y to EGP106mn. Please note that the difference between the consolidated and the standalone financials are minor (5% difference in 1Q16). Standalone Revenue grew 12% Y-o-Y to EGP460mn (in line): Local sales was up 17% Y-o-Y, likely driven by volume and price increases, while export inched down 6% Y-o-Y.   Solid margin improvement: Gross profit increased 21% Y-o-Y and gross profit margin improved 4.0 pp to 55%, and EBITDA rose 23% Y-o-Y and EBITDA margin by 3.4 pp to 37.0%. The improvement in margins was due to i) revenue growth; ii) better product mix (the company has lowered the production of low margin products); and iii) likely usage of low-cost inventory. (Earnings release, Tarek El Shawarby)   EIPICO: EGP68.00 as of 15 August 2016, Rating: Buy, FV: EGP83.00 per share, MCap: USD608mn, PHAR EY / PHAR.CA