Earnings Report /
Egypt

SODIC: 3Q22| Strong Sales Performance

  • Stellar 3Q22 sales rose 214.1% y/y and 74.1% q/q to EGP5.1 billion.

  • Revenue grew 33.2% y/y to EGP1.9 billion, and net profit grew 18.6% y/y to EGP141.8 million in 3Q22.

  • With 9M22 sales of EGP11.8 billion, OCDI is already past our FY22 sales forecast of EGP11.5 billion.

Al Ahly Pharos Securities Brokerage
26 October 2022

Stellar sales driven by the North Coast

  • OCDI achieved stellar 3Q22 results, with sales rising 214.1% y/y and 74.1% q/q to EGP5.1 billion, bringing 9M22 sales up 118.9% y/y to EGP11.8 billion. Sales performance continued to be supported by North Coast project, June.

  • Sales cancellation rate reached 8% of sales in 9M22, compared to 16% in 9M21. Sales cancellation rate was affected by the 464 feddan project’s temporary suspension. Excluding this effect would yield a sales cancellation rate of 3%. The project was relaunched in September 2022.

  • Net cash collections reached EGP4.4 billion with delinquency rate at 6.9% in 9M22, compared to EGP3.6 billion with delinquency rate at 8.5% in 9M21.

  • Construction spending amounted to EGP2.0 billion in 9M22, compared to EGP2.1 billion in 9M21.

  • Revenue grew 33.2% y/y and 24.5% q/q to EGP1.9 billion in 3Q22 on the back of an increase in number of unit deliveries, mainly driven by East Cairo projects, bringing 9M22 revenue up 40.4% y/y to EGP4.7 billion.

  • Gross profit in 3Q22 rose 33.9% y/y and 22.2% q/q to EGP534.8 million, leading to a stable GPM of 27.8%.

  • Net profit in 3Q22 grew 18.6% y/y and 116.5% q/q to EGP141.8 million, leading to a 3Q22 NPM of 7.4% and bringing 9M22 net profit up 26.7% y/y to EGP433.5 million.

  • Net debt increased from EGP888.9 million at the end of 2Q22 to EGP1.1 billion at the end of 3Q22.

  • Receivables, including off-balance sheet receivables, increased from EGP21.4 billion at the end of 2Q22 to EGP25.9 billion at the end of 3Q22.

Maintain Overweight

With 9M22 sales of EGP11.8 billion, OCDI is already past our FY22 sales forecast of EGP11.5 billion projected in our EGP20.02/share valuation. We remind you that OCDI is targeting FY22 sales of EGP14.0 billion. We maintain our Overweight recommendation given solid sales and delivery performance.