Rafah Crossing 'never been closed for one day' from Egypt: PM    Egypt will keep pushing for Gaza peace, aid: PM    Remittances from Egyptians abroad surge 70% YoY in July–May: CBE    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    Egypt's current account gap narrows, but overall BoP records deficit    Al-Sisi urges accelerated oil, gas discoveries, lower import bill    SCZONE signs $52.6m textile industry deals during China investment tour    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi calls for boosting oil & gas investment to ease import burden    EGX to close Thursday for July 23 Revolution holiday    Egypt, Senegal sign pharma MoU to unify regulatory standards    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    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.



SODIC, MHND merger to have strategic impact on both firms: report
Synergy between two companies to enhance Egypt's real estate sector
Published in Daily News Egypt on 22 - 04 - 2018

A recent report issued by Pharos Research said that the potential deal between Sixth of October for Development and Investment (SODIC) and Madinet Nasr for Housing and Development (MNHD) would have a strategic impact on both firms, with "SODIC being an established developer and MNHD being a coveted land bank owner."
Pharos forecasted that SODIC would benefit more than MNHD from implementing the potential deal.
Earlier this month, SODIC welcomed entering preliminary negotiations with MNHD to discuss possible collaboration.
The board of MNHD has discussed possible coordination with SODIC and has agreed on appointing EFG Hermes and Zaki Hashem and Partners law firm as the company's legal advisers for the deal.
The research firm has upgraded its fair value (FV) for SODIC's stock to EGP 45.50 per share from EGP 27.77, maintaining an overweight recommendation.
Upgrading the FV was driven by raising the research firm's sales forecast for 2018 to EGP 7.7bn from EGP 5.7bn as a result of adjusting selling prices in SODIC East, in addition to the newly signed North Coast co-development project, according to the report.
The FV was also impacted by the adjustment in the land price of Al Yosr, as well as SODIC's latest receivables and net cash position, the report added.
Meanwhile, Pharos Research has raised its target price (TP) for Arabian Food Industries Co (Domty) to EGP 13.18, maintaining an overweight recommendation.
Domty has been able to achieve a better-than-expected profit margin in the first quarter of 2018, recording a consecutive recovery in margins on a quarterly basis, according to a recent report.
The gross margin of the Egyptian dairy products firm is forecast to grow to 24.4% in 2018, the report pointed out.
Domty had previously posted a 140% year-over-year hike in consolidated profits during the full-year 2017 due to a growth in sales, recording a net profit of EGP 61.52m from EGP 25.5m in 2016, including minority shareholders' rights.
The company's board of directors had proposed retaining 2017 profits, except for employees' shares.
On another note, Renaissance Capital has raised the target price (TP) for Elsewedy Electric's stock to EGP 229 per share, downgrading the stock to hold from buy due to higher energy prices since the beginning of 2018.
Elsewedy has been able to maintain its current growth levels in the market, in line with sealing the $300m engineering, procurement, and construction (EPC) contract award for phase four of the Al Aweer power plant, according to a recent report by Renaissance Capital.
This is the first power generation contract Elsewedy has won in the Arabian Gulf as a lead contractor, the report added.
Elsewedy is likely to achieve estimated annual awards of around $1.03bn from the aforementioned project in four years, the Russian-based investment bank said.
Meanwhile, Pharos Research has reiterated its overweight recommendation for Qatar National Bank Alahli (QNB Alahli) at a fair value of EGP 60 per share.
The research firm forecast the bank's further regulatory adjustments to raise the free float stake to 10% would boost the stock, but this would not take place in the short term, according to a recent report.
In February 2018, CI Capital said that QNB had narrowed down its stake in the Egyptian unit, QNB Al Ahli, to 95.6% from 97.12% to comply with the Egyptian Exchange (EGX)'s listing rules.
QNB Al Ahli's capital amounts to around EGP 8.9bn, distributed over 89.4m shares at a par value of EGP 10 per share.
Another research note issued by Pharos Research has raised its fair value (FV) for Orascom Development Egypt to EGP 65 per share, maintaining an overweight recommendation.
The FV was driven by Orascom's residual land in El Gouna, which will be monetised in many ways, according to a recent report.
The research company has attributed the increase in FV to "the adjustment of the price/sqm of residual land in El Gouna, the addition of the new West Cairo project, the sale of non-core assets, the improvement of the hotel occupancy rate in El Gouna, and the latest receivables and net debt position."
It is worth noting that Orascom Development had signed offers to sell some of its non-core assets at around EGP 1.24bn two months ago.
Orascom Development's capital amounts to EGP 1.1bn, distributed over 221.16m shares at a par value of EGP 5 per share.


Clic here to read the story from its source.