SODIC: Off to a great start

  • 1Q21 sales reached EGP1.9 billion, up 113.9% y/y and down 44.0% q/q
  • 1Q21 net profit increased 233.3% y/y to EGP100.5 million
  • Company is on track to meet our FY21 sales forecast of EGP8.0 billion

Sales surge annually

  • OCDI achieved 1Q21 sales of EGP1.9 billion, up 113.9% y/y and down 44.0% q/q. The sequential decrease is expected given the general strength of 4Q in real estate. OCDI’s newest West Cairo project, Karmell, contributed 35.0% to 1Q21 sales, bringing West Cairo’s contribution to 62.0%. East Cairo projects contributed 38.0%.

  • Sales cancellation rate reached 8.0% of sales in 1Q21, compared to 22.0% in 1Q20.

  • Net cash collections in 1Q21 reached EGP1.2 billion with delinquencies at 10.9%, compared to net cash collections of EGP986.0 million and delinquencies of 11.2% in 1Q20.

  • Construction spending in 1Q21 amounted to EGP776.0 million, compared to EGP950.0 million in 1Q20.

  • Revenue in 1Q21 increased 60.5% y/y to EGP848.6 million as a result of the 20.0% y/y increase in unit deliveries.

  • Gross profit in 1Q21 reached EGP282.2 million, up 68.9% y/y, leading to a higher GPM of 33.2%.

  • Net profit in 1Q21 reached EGP100.5 million, up 233.3% y/y, translating into a higher NPM of 11.8%.

  • Net cash reached EGP27.0 million at the end of 1Q21, compared to net debt of EGP45.7 million at the end of 4Q20.

  • Receivables, including off-balance sheet receivables, reached EGP16.3 billion at the end of 1Q21, up from EGP15.8 billion at the end of 4Q20.

Maintain Overweight

OCDI’s sales of EGP1.9 billion in 1Q21 put it on track to meet our FY21 sales forecast of EGP8.0 billion. Our EGP8.0 billion FY21 sales forecast implies a 7.7% increase compared to FY20 sales and is 9.4% lower than the company’s FY21 sales target of EGP8.8 billion. We maintain our Overweight recommendation of OCDI based on our FV of EGP18.51/share.

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