Earnings Report /
Egypt

MNHD: 3Q22| Impressive Sales and Earnings

  • MNHD achieved stellar 3Q22 sales of EGP3.3 billion, up 445.9% y/y and 83.6% q/q.

  • Revenue in 3Q22 grew 188.9% y/y and 23.4% q/q to EGP1.2 billion.

  • Net profit in 3Q22 rose 1314.9% y/y and 173.7% q/q to EGP303.2 million.

Al Ahly Pharos Securities Brokerage
3 November 2022

Solid sales performance continues

  • MNHD achieved stellar 3Q22 sales of EGP3.3 billion, up 445.9% y/y and 83.6% q/q, bringing 9M22 sales to EGP6.7 billion, up 218.4% y/y, supported by the launch of Elect in Taj City. Around 37.0% of 9M22 sales constituted ready-to-move inventory sales, while off-plan sales generated the remaining 63.0%.

  • Net cash collections grew 39.0% y/y to EGP989.6 million in 3Q22, bringing 9M22 net cash collections up 18.5% y/y to EGP2.6 billion.

  • Delinquency rate reached 3.6% in 3Q22, down from 8.0% in 3Q21.

  • Sales cancellation rate reached 16.2% in 3Q22, compared to 88.5% in 3Q21 and 23.1% in 2Q22.

  • Construction and infrastructure spending amounted to EGP542.0 million in 3Q22, compared to EGP737.6 million in 3Q21 and EGP417.8 million in 2Q22.

  • Revenue in 3Q22 grew 188.9% y/y and 23.4% q/q to EGP1.2 billion on the back of an increase in unit deliveries and the increase in sales, bringing 9M22 revenue up 122.8% y/y to EGP3.1 billion.

  • Gross profit in 3Q22 increased 485.0% y/y and 150.6% q/q to EGP678.1 million, leading to a higher GPM of 54.8% given 65.5% of 3Q22 revenue was generated by unit sales, generating higher margins.

  • Net profit in 3Q22 rose 1314.9% y/y and 173.7% q/q to EGP303.2 million, translating into a higher NPM of 24.5% and bringing 9M22 net profit up 113.7% y/y to EGP534.3 million.

Maintain Equalweight

Following another strong quarter, MNHD is having a significantly solid year so far in terms of both sales and deliveries. We maintain our Equalweight recommendation based on our FV of EGP2.91/share given narrowing valuation gap due to market stock price rally.