Eastern Company’s (EAST.CA) budget for FY2016/17 (ending June 2017) targets after-tax earnings of EGP1.35 billion, versus the shareholder approved budget figure of EGP1.00 billion for FY2015/16. The target is subject to a number of factors including FX rate – the budget is based on an official EGP-USD exchange rate of EGP9.25 and the sale of 63.2 billion sticks. We note that the company has revised its FY2015/16 target to EGP1.5 billion (1H2015/16 earnings were EGP809 million); however, the budgeted FY2016/17 figure is based on the FY2015/16 target approved by shareholders. Accordingly, we view EGP1.35 billion as conservative and expect that the company could exceed this figure. (Company disclosure, Nada Amin, Hatem Alaa)   Eastern Company: EGP196.23 as of 30 March 2016, Rating: Buy, FV: EGP310.00 per share, MCap: USD1,105 million, EAST EY / EAST.CA