Mivida and Marassi deliveries drive revenue
EMFD reported solid 3Q22 revenue of EGP4.7 billion, up 22.2% y/y and 5.2% q/q, supported by revenue in Mivida, which constituted 47.7% of total revenue, followed by Marassi at 26.6%, Uptown Cairo at 18.2%, and hospitality at 7.5%, taking 9M22 revenue up 53.7% y/y to EGP11.7 billion.
Gross profit in 3Q22 grew 10.9% y/y and 8.8% q/q to EGP2.1 billion, leading to a GPM of 44.5%, lower annually and higher sequentially, and bringing 9M22 gross profit to EGP5.3 billion, up 53.8% y/y.
Net profit in 3Q22 increased 22.6% y/y and 21.4% q/q to EGP1.8 billion, translating into an NPM of 38.8%, higher annually and sequentially, and bringing 9M22 net profit to EGP4.9 billion, up 74.1% y/y.
Receivables, including off-balance sheet receivables, increased from EGP33.7 billion at the end of 2Q22 to EGP35.3 billion at the end of 3Q22.
Net cash increased from EGP9.4 billion at the end of 2Q22 to EGP9.8 billion at the end of 3Q22.
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 83.7% of its market cap.