MENA-1 MONDAY MORNING ROUND-UP

UAE
ENBDs 2Q2011 results: earnings marginally below the consensus OICs 2Q2011 net profit down 59.6% Y-o-Y

Kuwait
Aviation Lease made a gain of KWD17 million on Airbus deal

Qatar
QNavs 2Q2011 results: net income ahead; reiterate Buy Qatar to supply LNG to Malaysia for 20 years Impact of QCB interest limit is high on Al Ahli Bank QIIBs 1H2011 net profit increases 18.4% Y-o-Y Mazayas 1H2011 net profit down 26.3% Y-o-Y United Development Companys 1H2011 net profit up 1.7% Y-o-Y Qatar General Insurances 1H2011 net profit up 15.6% Y-o-Y Islamic Holdings 1H2011 net profit up 7.2% Y-o-Y

Oman
Raysut Cements 2Q2011 net profit 13% below our estimate on lower prices

Agenda
Qatar Mon 25 July >> Nakilat press conference Tue 26 July >> Al Khalij Commercial Bank (Al Khaliji) press conference Wed 27 July >> Dlala Holding Company 2Q2011 results Wed 27 July >> Commercial Bank of Qatar (CBQ) 2Q2011 results Thu 28 July >> Qatar Industrial Manufacturing Company 2Q2011 results Thu 28 July >> Qatar National Bank 1H2011 press conference Thu 28 July >> Al Khalij Holding Company 2Q2011 results Sun 31 July >> Qatar Oman Investment Company 2Q2011 results Sun 31 July >> Medicare Group 2Q2011 results Sun 31 July >> Qatar Oman Investment Company 2Q2011 results Mon 1 August >> The National Leasing Holding Company 1H2011 press conference Mon 1 August >> Aamal Company 2Q2011 results Tue 2 August >> Masraf Al Rayan 2Q2011 results Wed 3 August >> Qatar National Cement Company 2Q2011 results Wed 3 August >> Aamal Company press conference Tue 9 August >> Masraf Al Rayan press conference Tue 9 August >> Qatar Electricity & Water Company (QEWC) 2Q2011 results Sun 14 August >> Qtel 2Q2011 results Sun 14 August >> Doha Insurance 2Q2011 results

UAE News
ENBDs 2Q2011 results: earnings marginally below the consensus Emirates NBD (ENBD) [ENBD.DU] reported a profit of AED744 million for 2Q2011, about 5% lower than the Bloomberg consensus estimate of AED780 million. However, the profit figure is much lower than our forecast of AED1,115 million, likely

on higher-than-expected provisions. We will follow up with more details shortly. (Company Disclosure, Murad Ansari, Shabbir Malik) Emirates NBD: AED4.10, Rating: Neutral, FV: AED4.60, MCap: USD6,204 million, ENBD UH / ENBD.DU OICs 2Q2011 net profit down 59.6% Y-o-Y Oman Insurance Company (OIC) [OIC.DU] reported a net profit of AED22.8 million for 2Q2011, down 59.6% Y-o-Y. Net insurance premium revenue came in at AED356.8 million in 2Q2011 compared to AED306.2 million in 2Q2010. Net claims incurred came in at AED153.7 million, up from AED135.2 million in 2Q2010. Total assets as at 30 June 2011 were AED4.97 billion, up from AED4.82 billion as at 31 December 2010. Total equity stood at AED1.54 billion as at 30 June 2011, up from AED1.45 billion as at 31 December 2011. (Company Disclosure)

Kuwait News
Aviation Lease made a gain of KWD17 million on Airbus deal Aviation Lease and Finance Company (Alafco) [ALAFCO.KW] said that it made a gain of KWD17 million after waiving an agreement with Airbus SAS to buy six A350-900 aircraft for a third party. The gain will be included in Alafcos full-year results. (Bloomberg)

Qatar News
QNavs 2Q2011 results: net income ahead; reiterate Buy Qatar Navigation (QNav) [QNNC.QA] reported 2Q2011 net income of QAR158.8 million, 11% ahead of our QAR 143.7 million estimate. The group changed its reporting structure and consequently a like-for-like comparison to gross profits is no longer available. Like-for-like 2Q2011 revenues came in at QAR521.6 million, down 2% Q-o-Q and 11% ahead of our estimate. We believe that the outperformance of the bottom line is due to lower-than-expected finance charges and better-than-expected associate income (Nakilat [QGTS.QA]). QNavs net income has beaten our expectations for two consecutive quarters and consequently puts upward pressure on our 2011 forecasts. For instance, to meet our FY2011 net income estimate of QAR778.8 million, the group will need to generate QAR358 million in 2H2011 compared QAR435 million in 2H2010. We will likely revise our numbers after the analyst conference call. Qatar Navigation, trading on 11.7x estimated 2011 P/E and 5% prospective yield, offers compelling value, in our view. We expect the group to push on with its growth plans, and we believe M&A activity will act as a catalyst to drive the shares forward. QNavs core business remains highly geared to the local economy, which continues to grow at more than 10%. With this in mind and a solid set of 2Q2011 results, we reiterate our Buy rating. (Company Disclosure, Redwan Ahmed) Qatar Navigation: QAR79.30, Rating: Buy, FV: QAR105.50, MCap: USD2,504 million, QNNS QD / QNNC.QA Nakilat: QAR17.82, Rating: Buy, FV: QAR25.70, MCap: USD2,746 million, QGTS QD / QGTS.QA Qatar to supply LNG to Malaysia for 20 years Qatargas agreed to supply Malaysias Petronas LNG 1.5 million tonnes of LNG annually for at least 20 years from 2013, Qatargas said in a statement on 24 July 2011. The supply from Qatar would be equivalent to 5% of Malaysias current annual domestic LNG demand, the statement said. This is the first time that Qatargas signs a HOA (heads of agreement) to supply LNG to a South East Asian market, Qatargas CEO Khalid Bin Khalifa Al Thani said. (Reuters) Impact of QCB interest limit is high on Al Ahli Bank Al Ahli Banks (AABQ.QA) CEO Salah Murad said that the impact on the bank of Qatar Central Banks (QCB) restrictions on retail loans is high, as retail loans constitute 20% of Al Ahlis total banking portfolio. QCB in April reduced the amount banks can lend to Qataris to QAR2 million from QAR2.5 million and to foreigners to QAR400,000, and limited the interest lenders can charge on loans. On another note, Murad said that Al Ahli Banks brokerage division will begin operations this week. (Bloomberg) QIIBs 1H2011 net profit increases 18.4% Y-o-Y Qatar International Islamic Bank (QIIB) [QIIB.QA] reported a net profit of QAR322 million in 1H2011 compared to QAR272 million in 1H2010, an increase of 18.4% Y-o-Y. (Bloomberg) Mazayas 1H2011 net profit down 26.3% Y-o-Y Mazaya Qatar Real Estate Development (MRDS.QA) reported a net profit of QAR7 million in 1H2011, down 26.3% Y-o-Y. (Qatar Exchange)

United Development Companys 1H2011 net profit up 1.7% Y-o-Y United Development Company [UDCD.QA] reported a net profit of QAR346.8 million for 1H2011 compared to QAR340.9 million, up 1.7% Y-o-Y. EPS amounted to QAR2.16 as at 30 June 2011 compared to QAR2.12 as at 30 June 2010. (Qatar Exchange) Qatar General Insurances 1H2011 net profit up 15.6% Y-o-Y Qatar General Insurance (QGIR.QA) reported a 1H2011 net profit of QAR76.2 million, up 15.6% Y-o-Y. EPS amounted to QAR1.70 as at 30 June 2011 compared to QAR1.47 as at 30 June 2010. (Qatar Exchange) Islamic Holdings 1H2011 net profit up 7.2% Y-o-Y Islamic Holding Group (IHGS.QA) reported a net profit of QAR3,136 million in 1H2011 compared to QAR2,926 million in 1H2010, an increase of 7.2% Y-o-Y. (Qatar New Agency)

Oman News
Raysut Cements 2Q2011 net profit 13% below our estimate on lower prices Raysut Cement Company (RCC) [RCCI.OM] reported a 2Q2011 consolidated net profit of OMR3.9 million, down 43% Y-o-Y and 21% Q-o-Q, missing our estimate by 13% mainly on: i) lower selling prices, and ii) higher selling, general and administrative expenses. We highlight that the 2Q2010 net profit was inflated by the one-off gain of OMR1.59 million from the receipt of a claim against the government. Revenue came in at OMR23.3 million, up 18% Y-o-Y and 15% Q-o-Q, and 18% above our estimate, mainly on stronger-thanestimated volumes from Pioneer Cement; 2Q2011 consolidated sales volume, including clinker, reached 1.1 million tonnes, up 56% Y-o-Y and 30% Q-o-Q, beating our estimate by 34%. However, this was partially offset by lower-than-estimated selling prices on a higher competition from the UAE. RCCs selling prices averaged OMR20.70/tonne, down 24% Y-o-Y and 21% Q-oQ, versus our estimate of OMR23.50/tonne. The companys selling general and administrative expenses for 2Q2011 exceeded expectations, reaching 1.63% of sales versus 1.5% historically, which we believe is attributable to higher transportation costs from Pioneer Cement. This, in addition to lower selling prices, led to a consolidated EBITDA margin of 28% in 2Q2011, down from 44% in 2Q2010 and 37% in 1Q2011, and compared to our estimate of 35%. We will likely revise our forecasts based on recent developments. (Company Disclosure, Malak Youssef) Raysut Cement: OMR1.075, Rating: Neutral, FV: OMR0.979, MCap: USD563 million, RCCI OM / RAYC.OM
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