Cairo – Mubasher: MubasherTrade Research (MTR) said it maintained its price target (PT) for Heliopolis Housing & Development at EGP86.2/share (ETR +59%), with buy/high risk rating.
Heliopolis Housing reported an almost doubled net income of EGP401 million (+96% y-o-y) for the fiscal year 2015/2016, beating MTRe and consensus estimates by 16% and 31%, respectively.
The company’s earnings growth was mainly attributed to 37% y-o-y higher revenues to EGP658 million, slightly missing MTR’s estimates of EGP683 million (-3.8%), but beating consensus of EGP606 million (+9%).
MTR pointed out that the consensus estimates includes MTRe and another research house.
Moreover, Heliopolis Housing reported higher-than-expected gross profit margin (GPM) of 83%, rising by 21.6% points y-o-y, mostly due to higher sales of services land plots. The company halted residential land sales, while it still has permission to sell services land
