Earnings Report /
Egypt

MNHD: 2Q22 – Strong sales and solid deliveries

  • MNHD achieved strong 2Q22 sales of EGP1.8 billion, up 122.8% y/y and 14.0% q/q.

  • Revenue in 2Q22 grew 117.3% y/y and 19.1% q/q to EGP1.0 billion.

  • Net profit in 2Q22 decreased 2.9% y/y and 7.9% q/q to EGP110.8 million.

Al Ahly Pharos Securities Brokerage
9 August 2022

Positive momentum continues

  • MNHD achieved strong 2Q22 sales of EGP1.8 billion, up 122.8% y/y and 14.0% q/q, bringing 1H22 sales to EGP3.3 billion, up 117.3% y/y, supported by the launch of Taj Ville in Taj City. Around 43.0% of 1H22 sales constituted ready-to-move inventory sales, while off-plan sales generated the remaining 57.0% of 1H22 sales.

  • Net cash collections grew 13.8% y/y to EGP797.7 million in 2Q22, bringing 1H22 net cash collections up 8.8% y/y to EGP1.6 billion.

  • Delinquency rate reached 4.4% in 2Q22, down from 9.0% in 2Q21.

  • Sales cancellation rate reached 23.1% in 2Q22, compared to 20.5% in 2Q21 and 49.1% in 1Q22.

  • Construction and infrastructure spending amounted to EGP417.8 million in 2Q22, compared to EGP486.3 million in 2Q21 and EGP381.1 million in 1Q22.

  • Revenue in 2Q22 grew 117.3% y/y and 19.1% q/q to EGP1.0 billion on the back of an increase in unit deliveries and the increase in sales, bringing 1H22 revenue up 93.2% y/y to EGP1.8 billion, driven by deliveries in Sarai.

  • Gross profit in 2Q22 was stable at EGP270.6 million, leading to a GPM of 27.0%, lower due to 2Q22 taking into account the costs of the higher number of deliveries.

  • Net profit in 2Q22 decreased 2.9% y/y and 7.9% q/q to EGP110.8 million, translating into a lower NPM of 11.1%.

Maintain Overweight

Following a strong 1H22, positive sales momentum continued beyond 1H22, with reservations recording EGP1.2 billion in July 2022, marking MNHD’s highest reservations figure in a single month. We maintain our Overweight recommendation based on our FV of EGP2.91/share given the company’s attractively-located land bank.