Cairo – Mubasher: Pharos Research has reiterated their ‘Overweight’ recommendation on Palm Hills Development Co based on a fair value (FV) of EGP 6.57 per share.
The FV was supported by the real estate developer’s portfolio, mainly Badya project, which contributed EGP 1.43 per share to the total FV, Pharos added in a research note on Wednesday.
The launch of Badya has boosted the company’s sales by 125.5% year-on-year to EGP 5.7 billion and raised sales in the first half of this year by 29.5% year-on-year to EGP 7.8 billion, the research firm added.
The board of Palm Hills has approved “an EGP1.5 billion capital increase through tradable rights issue at par value that will be mainly used to develop Badya’s infrastructure,” according to the report.
Earlier this day, Palm Hills reported a 25.9% year-on-year rise in consolidated profits for the first half of 2018 due to a growth in revenues.
Net profit amounted to EGP 439.9 million during H1-18, versus EGP 349.3 million in the year-ago period, including minority shareholders’ rights.
The company also posted that its board has approved to boost authorised capital to EGP 10 billion from EGP 6 billion.
The board also agreed to raise issued capital by EGP 1.53 billion to EGP 6.15 billion from EGP 4.6 billion by inviting major shareholders to a subscription through issuing 769.6 million shares at par value of EGP 2, in addition to the expenses of issuance
