Egis is expected to publish its second fiscal quarter results on 8 May 2007 before market open. We forecast Egis will post HUF 2.26bn consolidated net profit in 2Q07/06 (versus HUF 4.0bn in 2Q06/05 and HUF 1.8bn in 1Q07/06) on the back of adverse changes in cross rates, shift in sales mix towards lower margin directions, newly imposed drug industry specific taxes and lack of hedge positions. We expect slight negative market reaction to the figures as we believe consensus figure could edge downwards. We see first half consolidated net result could reach HUF 3.9bn or 28.8% of the full year consensus available on Bloomberg of HUF 13.6bn (it is a mix of consolidated and unconsolidated results) and 29.2% of our full year consolidated forecast of HUF 13.5bn.