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Porto Group Holding reports 109% hike in 2017 profit; proposes bonus shares Company net profit stood at EGP 245.5m last year, up from EGP 117.5m prior year
Porto Group Holding reported on Wednesday a 109% year-over-year hike in consolidated profits for 2017 as its revenues from main operations accelerated, the company said in a press release. The Egyptian Exchange (EGX)-listed company net profit stood at EGP 245.5m last year, versus EGP 117.5m a year earlier, the company said in a filing to the EGX. Revenues grew to EGP 2.3bn in 2017, from EGP 1.2bn in 2016. Standalone profits surged to EGP 177.15m in 2017, compared to EGP 39.7m in 2016. The growth in sales revenues is driven by new sales from existing projects. Meanwhile, Porto Group recommended distributing bonus shares at a 1:5 ratio. The Egyptian real estate firm decided to distribute bonus shares for 2016 retained profits and part of the profits for 2017, the company highlighted in a separate filling to the EGX. The company's capital amounts to EGP 501.5m distributed over 5.015bn shares at a par value of 0.10 per share. A recent report issued by Beltone has estimated Porto's sales for 2018 and 2019 to reach EGP 3.4bn and EGP 3.8bn respectively. The research firm also expects a three-year earnings compound annual growth rate (CAGR) of 56% and an average dividend payout ratio of 50%. Beltone's valuation for Porto Heliopolis adds EGP 0.06 to 0.07 per share to its fair value (FV) estimation, an additional upside of 14% to 16%. Porto Heliopolis is located close to Cairo International Airport and between two fully developed areas in Egypt, namely Nasr City and Heliopolis, where almost no competition exists. "We highlight this project as the main trigger to boost sales after 2019, as we believe the inventory available for sale should be mostly sold by that time." "We expect most of the launched inventory in the existing projects to be finalised in two to three years; hence, we foresee no growth starting in 2020 unless new projects are launched," the report noted.
