Prime Minister Sherif Ismail has approved a new export rebate programme that was proposed earlier in 2016. The formal passing of the programme bodes well for Oriental Weavers’ (OW) export business and improves earnings visibility. However, as noted in our last update, the new programme does not really increase the rebates for OW unless it manages to tap into the additional incentives listed below as higher rebates on local materials in non-free zones are offset by lower ones on imported materials in free zones. The programme will be implemented retroactively on export shipments starting 1 July 2016.    Additional export incentives include: Growth in USD sales revenue: Growth of 10-15% would entitle exporters to an additional 10% of the primary incentive rates, 15-25% an additional 20% and in excess of 25% an additional 30% Exporting to Africa ex-Libya: Additional 2% over the primary incentive rate, in addition to a refund of 50% of the freight cost to Africa Penetrating new markets: Additional 50% over primary incentive rates for opening new markets (i.e., Russia, China, Latin America and the CIS region) Cash deposits: Export subsidy fund can accept cash deposits on exports to Iraq, Syria, Yemen, Libya, Sudan and Iran   Despite recent strong share price performance, we remain Buyers of OW, as we believe the stock will continue to re-rate as a beneficiary of EGP devaluation, with valuation still compelling (c10x 2017e P/E). (Nada Amin, Hatem Alaa)   Oriental Weavers: EGP15.98 as of 08 January 2017, Rating: Buy, TP: EGP22.00 per share, MCap: USD403mn, ORWE EY / ORWE.CA