EMX appoints Al-Jarawi as deputy chairman    Mexico's inflation exceeds expectations in 1st half of April    Egypt's gold prices slightly down on Wednesday    GAFI empowers entrepreneurs, startups in collaboration with African Development Bank    Egyptian exporters advocate for two-year tax exemption    Egyptian Prime Minister follows up on efforts to increase strategic reserves of essential commodities    Italy hits Amazon with a €10m fine over anti-competitive practices    Environment Ministry, Haretna Foundation sign protocol for sustainable development    After 200 days of war, our resolve stands unyielding, akin to might of mountains: Abu Ubaida    World Bank pauses $150m funding for Tanzanian tourism project    China's '40 coal cutback falls short, threatens climate    Swiss freeze on Russian assets dwindles to $6.36b in '23    Amir Karara reflects on 'Beit Al-Rifai' success, aspires for future collaborations    Ministers of Health, Education launch 'Partnership for Healthy Cities' initiative in schools    Egyptian President and Spanish PM discuss Middle East tensions, bilateral relations in phone call    Amstone Egypt unveils groundbreaking "Hydra B5" Patrol Boat, bolstering domestic defence production    Climate change risks 70% of global workforce – ILO    Health Ministry, EADP establish cooperation protocol for African initiatives    Prime Minister Madbouly reviews cooperation with South Sudan    Ramses II statue head returns to Egypt after repatriation from Switzerland    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    EU pledges €3.5b for oceans, environment    Egypt forms supreme committee to revive historic Ahl Al-Bayt Trail    Debt swaps could unlock $100b for climate action    Acts of goodness: Transforming companies, people, communities    President Al-Sisi embarks on new term with pledge for prosperity, democratic evolution    Amal Al Ghad Magazine congratulates President Sisi on new office term    Egypt starts construction of groundwater drinking water stations in South Sudan    Egyptian, Japanese Judo communities celebrate new coach at Tokyo's Embassy in Cairo    Uppingham Cairo and Rafa Nadal Academy Unite to Elevate Sports Education in Egypt with the Introduction of the "Rafa Nadal Tennis Program"    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Mubasher Trade maintains ‘Buy' rating for Emaar Misr with price target of EGP4.04/shr
The research firm says that the company's results in Q2 come in line with expectations
Daily News Egypt Published in Daily News Egypt on 13 - 08 - 2017

Mubasher Trade Research has maintained its "Buy/Moderate Risk" rating for Emaar Misr for Development, at a price target (PT) of EGP 4.04 per share, implying a 52% upside potential.
Earlier last week, Emaar Misr reported a 23% year-on-year increase in profits to EGP 539 million for the second quarter (Q2) of 2017 from EGP 436.8 million in Q2 2016.
These results were "in line with consensus estimates at EGP 494 million (variance: +9%)," the note by Mubasher Trade Research showed, attributing the surge in bottom-line profits to the growth in interest income by "more than two-folds" of 163% year-on-year to EGP 319 million in Q2 2017 from EGP 121.4 million in Q2 2016.
"Revenues declined 8% year-on-year to EGP 1.09 billion in Q2 2017, versus EGP 1.18 billion, missing consensus estimates at EGP 1.21 billion (variance: -10%) on the back of lower revenues from Marassi," the report said.
Revenues from Marassi dropped 9% year-on-year to EGP 537.2 million in Q2 2017 from EGP 587.7 million, representing 49% of revenues in Q2 2017.
Moreover, revenues from Emaar Misr's Uptown Cairo project retreated 52% year-on-year to EGP 142.8 million in Q2 2017 compared to EGP 295.4 million, representing 13% of total revenues in Q2 2017.
Despite these declines, the research firm said it had "no concern" on the lower revenues in Q2 2017, owing to Emaar Misr's "large backlog on the company's books as of December 2016, amounting to EGP 19.5 billion, which would support the performance in the coming period."
"Emaar Misr for Development has treasury bills balance on its books worth of EGP 4.32 billion as of June 2017," the Mubasher Trade Research noted.
Gross profit fell 20% year-on-year to EGP 347.2 million, with gross processing margin (GPM) retreating to 32% in Q2 2017 from 36% in Q2 2016.
"Investigating projects' margins, Marassi, the largest contributor to gross profit, reported lower GPM at 27% in Q2 2017, versus 37% in Q2 2016," the report said, noting that Mivida's GPM retreated to 31% in Q2 2017, versus 38% in Q2 2016, "offsetting higher GPM recorded by Uptown Cairo at 50% versus 34% in Q2 2016."
Selling, general, and administrative expenses soared 46% year-on-year to EGP 111.1 million from EGP 76.3 million in Q2 2016, representing 10% of total revenues in Q2 2017, compared to 6% in Q1 2017.
"This resulted in lower EBITDA that stood at EGP 292.6 million in Q2-17, compared to EGP 363.9 million in Q2 -16 (-20% year-on-year), translating into an EBITDA margin of 27% in Q2-17, versus 31% in Q2-16."

Clic here to read the story from its source.