Cairo – Mubasher: Pharos Research on Thursday announced maintaining its "Overweight" recommendation on Madinet Nasr Housing and Development’s (MNHD) stock with a price target (PT) of EGP 30.37 per share.
“Our FV consists of the firm’s residual land bank (EGP26.25/share), development projects (EGP3.45/share), and receivables (EGP0.68/share),” the research firm stated in its newest report on the stock.
The Egyptian-listed real estate firm reported a consolidated revenue of EGP 2 billion in 2016, up 162% year-on-year.
The surge was due to an increase in the number of delivered units as the company delivered over 300 units in 2016, compared to only 190 units in 2015, Pharos noted, adding that MNHD’s “revenue boost is also due to the company’s remarkable sales performance during 2016.”
MNHD also “approved the distribution of bonus shares at a 1:1 ratio, financed through FY16 net profit, which will raise the company’s paid-in capital from EGP 500 million to EGP 1 billion,” the research firm said, adding that MNHD will distribute cash dividends of EGP 0.30/share, pending an approval by the company’s shareholders.
MNHD’s stock ended Thursday's session up 8.75% to EGP 20.50.
