Impressive growth in sales and deliveries
EMFD achieved solid FY21 sales of EGP23.2 billion, up 28.9% y/y.
4Q21 revenue reached EGP3.5 billion, up 53.8% y/y and down 9.8% q/q, bringing FY21 revenue to EGP11.1 billion, up 136.6% y/y as a result of the 114.9% y/y rise in unit deliveries and the 138.4% y/y rise in hospitality revenue to EGP411.0 million.
Unit deliveries in Mivida, Marassi, and Uptown Cairo respectively contributed 51.0%, 30.7%, and 14.6% to FY21 revenue, and the hospitality segment contributed the remaining 3.7%.
Gross profit in 4Q21 reached EGP1.6 billion, up 78.4% y/y and down 14.6% q/q, leading to a 4Q21 GPM of 46.4% and bringing FY21 gross profit to EGP5.0 billion, up 192.9% y/y, and FY21 GPM to 45.4%.
Net profit in 4Q21 reached EGP1.3 billion, up 84.4% y/y and down 12.0% q/q, giving way to a 4Q21 NPM of 37.7% and bringing FY21 net profit to EGP4.1 billion, up 117.8% y/y, and FY21 NPM to 37.2%. Net profit continued to be supported by finance income which recorded EGP966.0 million in FY21, down 23.9% y/y.
Receivables, including off-balance sheet receivables, reached EGP31.5 billion at the end of 4Q21.
Net cash increased from EGP10.8 billion at the end of 3Q21 to EGP11.5 billion at the end of 4Q21.
Maintain Overweight
Given EMFD’s solid sales performance and strong net cash position, we maintain our Overweight recommendation based on our FV of EGP4.79/share. EMFD’s net cash currently constitutes 97.3% of market cap.