Cairo – Mubasher: MubasherTrade Research maintained a ‘Buy’ recommendation on Madinet Nasr Housing & Development (MNHD), a research note revealed.
In addition, the stock’s price target (PT) was stayed unchanged at EGP 21.03 per, with a higher effective tax rate at 47%, according to the note.
In the second quarter, the company registered 26% higher contracted sales at EGP 289 million in spite of the slowdown. Out of this amount, 72% were generated by "Taj City" project and the remaining 20% and 8% were provided through "Taj Sultan" and "Primera" projects, respectively.
The real estate developer has been granted the green light to increase the allowable heights at its "SARAI" development to 21 meters from a maximum of 15-18 meters.
“Although the built-up area (BUA) will remain unchanged, we believe the lower footprint area will increase the attractiveness of the project”, the firm agency expected.
Moreover, the board of directors gave the go-ahead to a GDR program, pending regulatory approvals, which should allow foreign investors to mitigate the risks associated with the EGP devaluation. This will be reflected positively on the company's stock price.
The real estate developer saw net profits of EGP 78.6 million in Q2-2016, up from EGP 68.9 million for the comparable period of the previous year.
The firm also reported revenues of EGP 295.9 million for Q2-2016, up by 41.1% y-o-y.
As for the first half of 2016, the company registered a net profit of EGP 147.2 million, up by 40% from EGP 105.1 million for the same period of 2015.
