Cairo – Mubasher: Madinet Nasr Housing and Development (MNHD) posted a 41% year-on-year surge in standalone earnings in the second quarter of 2017 due to gross revenues from its project SARAI New Cairo, according to a report by MubasherTrade Research.
Earnings reached EGP 106.5 million in Q2-17, compared to EGP 75.6 million in Q2-16, the report stated.
Net revenues increased 62% to EGP 354.4 million in Q2-17 from EGP 219.4 in Q2-16.
Gross revenues from SARAI reached EGP 174.5 million in Q2-17, as “SARAI has booked contracted sales of EGP 2.81 billion since its launch in November 2016,” MubasherTrade Research stated.
Total contracted sales grew two-fold by 101% year-on-year to EGP 576.8 million in Q2-17 from EGP 286.6 million in Q2-16, with contracted standalone sales of EGP 210 million in July 2017.
“Cost of sales witnessed almost a three-fold growth in Q2-17,” reaching EGP 157.9 million from EGP 53.2 million in Q2-16 due to “realising costs attributed to SARAI amounting to EGP 76.5 million”.
Taj Sultan's cost of sales soared by 85% year-on-year to EGP 80.8 million in Q2-17, versus EGP 43.7 million in the same period last year, which resulted in a total gross margin of 55% in Q2-17, versus 76% in the prior period.
Selling, general, and administrative expenses declined 13% in Q2-17 from 16% in Q2-16, and “the effect of higher cost of sales was reflected on the EBITDA margin declining from 54% in Q2-16 to 42% in Q2-17”.
The research firm stated that MNHD’s stock will be kept under review since the firm is currently updating its model, noting that “the last PT we had for MNHD was EGP 21.03/share with a Low Risk rating”.
