Revenue down annually and up sequentially
EMFD reported relatively solid 2Q20 revenue of EGP770.6 million, down 13.5% y/y and up 221.7% q/q. Deliveries in Mivida contributed the most to 2Q20 revenue with a 75.5% share, followed by Marassi at 12.6% and Uptown Cairo at 11.9%.
Gross profit in 2Q20 was down 20.9% y/y and up 490.6% q/q to EGP279.3 million, giving way to a GPM of 36.2%, compared to 2Q19 GPM of 39.6% and 1Q20 GPM of 19.7%.
Net profit in 2Q20 increased to EGP365.7 million, compared to a net loss of EGP324.3 million in 2Q19, which had been the result of an EGP878.0 million donation made by the company to national projects, and compared to net profit of EGP215.8 million in 1Q20. NPM in 2Q20 stood at 47.5%, compared to -36.4% in 2Q19 and 90.1% in 1Q20.
Net cash decreased from EGP11.2 billion at the end of 1Q20 to EGP10.6 billion at the end of 2Q20.
The company does not report quarterly sales.
We maintain our Overweight recommendation of EMFD based on our FV of EGP4.58/share. EMFD’s net cash currently constitutes 95.8% of market cap.