Recurring earnings surged to EGP955mn (+64% Y-o-Y, 94% Q-o-Q), exceeding our estimate of EGP450mn on stronger cables and turnkey projects performances. Revenue grew 25% Q-o-Q and adjusted EBITDA 71%, supported by 6.3pp margin expansion to a record-high of 23.3%. The company booked an FX loss of EGP74mn vs. a gain of EGP267mn (on FC turnkey receivable) in 1Q16; hence, net income was EGP873mn vs. EGP758mn in 1Q16. We will likely revise our 2016 forecasts (recurring earnings of EGP2.0bn vs. EGP1.45bn in 1H16) mainly to factor in its 2Q16 margin surprise. We reiterate our Buy rating as it continues to benefit from power capacity expansion in Egypt, it recently won several projects in Egypt and the GCC, trades at low P/E, and offers a high single-digit dividend yield. (Earnings release, Wafaa Baddour)   Elsewedy Electric: EGP50.07 as of 30 August 2016, Rating: Buy, FV: EGP57.30 per share, MCap: USD1,260mn, SWDY EY / SWDY.CA