Mubasher: MubasherTrade Research (MTR) maintained the price target (PT) of Talaat Moustafa Group Holding (TMG) at EGP 13.06, with “Buy/Low Risk” rating, according to a recent report.
TMG disclosed its preliminary financials for Q2-16, reporting 10% year-on-year rise in net income to EGP 227 million, missing the consensus by 13%.
The earnings growth was mainly driven by higher gross profit margin by 1.9 percentage points year-on-year to 34.1% in Q2-16.
On the other hand, total revenues declined by 3% year-on-year to EGP 1.71 billion in Q2-16, beating the estimates by 6%.
The report highlighted that TMG booked 16% year-on-year lower pre-sales of EGP 1.48 billion in Q2-16.
“Although TMG maintained its position as one of the largest listed developers in Egypt in terms of pre-sales, said drop in pre-sales affirms the competitive pressure, particularly on "Madinaty" project,” MTR noted.
