Earnings Report /
Egypt

Emaar Misr For Development: 2Q22 – Solid growth in revenue and earnings

  • EMFD reported strong 2Q22 revenue of EGP4.5 billion, up 98.7% y/y and 73.2% q/q.

  • Net profit in 2Q22 reached EGP1.5 billion, up 87.1% y/y and down 5.3% q/q.

  • EMFD’s net cash position currently constitutes 83.3% of its market cap.

Al Ahly Pharos Securities Brokerage
15 August 2022

Revenue grows on the back of Mivida and Marassi deliveries

  • EMFD reported strong 2Q22 revenue of EGP4.5 billion, up 98.7% y/y and 73.2% q/q, supported by revenue in Mivida, which constituted 51.2% of total revenue, followed by Marassi at 45.6%, Uptown Cairo at 1.4%, and hospitality at 1.8%, taking 1H22 revenue up 85.6% y/y to EGP7.0 billion.

  • Gross profit in 2Q22 grew 106.1% y/y and 50.3% q/q to EGP1.9 billion, leading to a GPM of 43.0%, higher annually and lower sequentially.

  • Net profit in 2Q22 reached EGP1.5 billion, up 87.1% y/y and down 5.3% q/q, translating into an NPM of 33.6%, bringing 1H22 net profit to EGP3.1 billion, up 131.6% y/y.

  • Receivables, including off-balance sheet receivables, increased from EGP32.6 billion at the end of 1Q22 to EGP33.7 billion at the end of 2Q22.

  • Net cash decreased from EGP12.2 billion at the end of 1Q22 to EGP9.4 billion at the end of 2Q22 due to increase in debt.

Maintain Overweight

Given EMFD’s healthy results and solid net cash position, we maintain our Overweight recommendation based on our FV of EGP4.79/share. EMFD’s net cash position currently constitutes 83.3% of its market cap.