- Sales in Q2 19 declined 29.1% yoy and 49.8% qoq to EGP688.0mn.
- Revenue in Q2 19 declined 30.7% yoy and 28.3% qoq to EGP454.5mn.
- The decline in top line trickled down the income statement, with gross profit and net profit also declining annually and sequentially.
- Margins also decreased yoy and qoq, with GPM at 68.7% and NPM at 40.2%.
Company target seems unlikely
Madinet Nasr for Housing and Development (MNHD) is targeting FY1 9 sales of EGP7.0bn, which would imply a 27.4% yoy increase. Given the company’s EGP2.1bn in 1H19 sales, its FY19 target seems far-fetched, even in light of the company’s planned 3Q19 launch of a new phase in Taj City.
We reiterate our Overweight recommendation of MNHD based on our FV of EGP9.34/share, which is mainly supported by the company’s 6mn sqm of residual land.