Equity Analysis /
Egypt

MNHD: Q1 19 – Sales show single digit growth, revenues disappoint

    ​​Sales in Q1 19 rose 8.7% yoy and 4.1% qoq to EGP1.7bn, supported by residential units in Taj City and SARAI, and the launch of the company’s first office park, Cobalt Business District.

    Revenue in Q1 19 was disappointing, portraying a marginal annual increase and a bigger sequential drop, on the back of few deliveries, typical of the company’s first quarter delivery performance. 

    GPM in Q1 19 decreased yoy but increased qoq, while NPM increased both annually and sequentially.

    Aiming higher in 2019

    The company is targeting FY 19 sales of EGP7.0bn, which would imply a 27.4% yoy increase, which is achievable in our opinion, if the company continues to monetise its commercial assets.

    Maintain Overweight

    We maintain our Overweight recommendation on MNHD based on our FV of EGP10.50/sh, which is mainly supported by the company’s 6.0mn sq m residual land, constituting 62.7% of our total valuation.