Earnings Report /
Egypt

Emaar Misr For Development: FY 19 – Impressive sales performance

  • Net sales in FY 19 rose 20.9% yoy to EGP13.9bn

  • Net cash is currently 7.1% higher than market cap

  • We maintain our Overweight recommendation based on our FV of EGP6.11/share

Al Ahly Pharos Securities Brokerage
2 March 2020

Key highlights:

  • Net sales in FY19 rose 20.9% y/y to EGP13.9 billion. The company does not disclose quarterly sales.
  • Revenue in 4Q19 reached EGP3.1 billion, down 11.1% y/y and up 254.2% q/q, taking FY19 revenue to EGP5.5 billion, down 13.8% y/y. Deliveries in Mivida, Marassi, and Uptown Cairo respectively contributed 54.3%, 39.9%, and 5.8% to FY19 revenue.
  • Net profit in 4Q19 reached EGP1.1 billion, down 33.1% y/y and up 107.6% q/q, bringing FY19 net profit to EGP1.7 billion, down 49.1% y/y, due to the 2Q19 net loss that had been the result of the EGP878.0 million donation by the company to national projects.
  • Net cash decreased from EGP12.8 billion at the end of 3Q19 to EGP12.3 billion at the end of 4Q19.
  • Receivables, including off-balance sheet receivables, increased from EGP16.9 billion at the end of 3Q19 to EGP20.7 billion at the end of 4Q19.

Maintain Overweight

We maintain our Overweight recommendation of Emaar Misr for Development (EMFD) based on our FV of EGP6.11/share. EMFD’s net cash is currently 7.1% higher than the company’s market cap.