Egyptian hospitals in Sinai on alert amid Israeli aggression on Gaza    Israel continues targeting Gaza, Palestinian resistance responds with missiles    Egypt announces Thursday 1st day of Eid Al-Fitr    Nuweiba: Egypt's paradise of serenity    Egypt's current account deficit jumps to $7.6 bln in 1H of FY2020/21: CBE    Opinion| Egypt and Human Rights    Egypt's trade deficit down 1.2% to $3.34bn in February 2021: CAPMAS    Global economic recovery to improve debt service coverage ratios: Moody's    Opinion| Biden and hate crimes against Asians    Egypt's Trade Minister outlines customs clearance conditions for imported electric vehicles    Egypt's unemployment increases to 7.4% in Q1 2021: CAPMAS    Egypt raises readiness at university hospitals for Eid Al-Fitr holidays    Egypt develops Suez Canal in line with international trade movement: Al-Sisi    Egypt's Parliament discusses abolishing imprisonment for female debtors    India to procure 300k Remdesivir doses from Egypt's Eva Pharma    Egypt will locally manufacture first 2m Sinovac vaccine doses by June-end    2021 South East European Film Festival celebrates cinematic diversity of 18 countries    Sheffield Documentary Film Festival announces line-up for June edition    Lebanese pop star Carole Samaha to release new album this summer    We want Egypt and Sudan to agree to second filling only: Ethiopia    Turkey seeks to restore 'historic unity' with Egyptian people: Erdogan    Al Ahly face injuries as they take on Al Ittihad Alexandria    Elneny's Arsenal targets 'remontada' in Europa League semi-finals    Zamalek eye return to victories at expense of Smouha in Egyptian Premier League    Egypt's CIB first bank in MENA, Africa to receive Gender Equity Seal    Egypt buys 30 Rafale fighter jets from France    Direct flights between Russia and Egypt will resume in June, Ambassador    Egypt's Ahly is establishing a new stadium, expected to be 'sports complex'    Blinken presses Ethiopia's Abiy to ensure full withdrawal of Eritrean troops from Tigray    Forces opposed to Somali president control parts of Mogadishu    Nine people executed in Egypt over Kerdasa police killings in 2013    UEFA investigating Ibrahimovic's alleged ties to betting company    61 doctors died from coronavirus since start of April: Egypt's medical syndicate    Egypt targets 5.6% inflation rate in FY2020/21, 6% in FY2021/22    Egypt allocates EGP 132 bln to modernise railway system: Transport minister    Real Madrid not thinking about any Super League sanctions: Zidane    Total declares force majeure on Mozambique LNG after attacks    All the winners at the 93rd Academy Awards    Egypt's Ahly granted approval to build new stadium on Cairo outskirts    Aswan Int'l Women's Film Festival dedicates 5th edition to Kawthar Heikal    BREAKING: Egypt's information minister Osama Heikal resigns amid parliamentary criticism    'War was not Egypt's aim, but peace was the ultimate goal,' Sisi says on Sinai Liberation Day anniversary    Factbox: Key nominations for the 2021 Academy Awards    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    Veteran Egyptian journalist Makram Mohamed Ahmed passes away at 86    Allianz Egypt partners with IGNITE to equip brand ambassadors for 2021 Olympics    Hassan Allam consortium wins contract to manage, operate Grand Egyptian Museum    Seasoned Egyptian screenwriter Wahid Hamed dies at 76    

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

ODE stock takes hit on tourism sector projects, due to COVID-19
We expect demand in second homes segment to suffer most due to global health pandemic, says Elsaadany
Published in Daily News Egypt on 06 - 06 - 2020

Orascom Development Egypt (ODE) stock has taken a hit due to its tourism sector projects, despite its impressive real estate operations, according to Mariam Elsaadany, real estate analyst at HC Securities and Investment.
"Tourism exposure has taken a toll on the company's operations and stock performance, with its exposure standing at about 32% of 2019 revenues and about 30% of 2019 EBITDA," Elsaadany said.
She added, "This has led to a steep decline in the company's share price, which is down by about 50% year-to-date (YTD) against only about 26% for EGX30.
Investors perceive it to be amongst the companies most badly hit by the coronavirus (COVID-19) pandemic, and the restrictive measures taken to combat it.
Elsaadany added, "Across our coverage, ODE is the company with the highest tourism exposure, which warrants a significant downward revision in 2020e earnings, in our view."
She also said, "Accordingly, we expect 2020e hospitality revenues and town management to drop by about 56% y-o-y and about 68% y-o-y, respectively."
Elsaadany noted that, despite the government decision to reopen hotels and resorts to domestic tourism on 15 May, HC Brokerage remains conservative in its assumptions for 2020e.
This comes in light of hotels only permitted to operate at a maximum capacity of 25% for the remaining months of the second quarter (2Q) of the fiscal year (FY) 2019/20, going up to only 50% by July.
Elsaadamy said that the restriction on hotel occupancy rates justifies the downward revision in HC Brokerage's 2020 estimates.
HC Brokerage expects the real estate segment to suffer further from weak pre-sales, due to the pandemic, with an upside being the low risk of a steep increase in cancellations.
"We expect demand for the second homes segment to suffer most, in our view, which affects the real estate operations of ODE's destinations of El Gouna, Makadi and Fayoum," Elsaadany said, "We perceive O West to be a successful project as it captured EGP 5.31bn in sales since its launch and up to 1Q of FY2020."
She said that the HC Securities and Investment believes ODE stock's execution capacity on such a large scale project will be tested in 2020e.
"O West can capture a decent market share because of the developer's strong name and superior West Cairo location. Despite our general positive outlook for O West, we expect ODE stock's total real estate sales to drop about 33% y-o-y in 2020e on the back of lower volumes," Elsaadany added.

Clic here to read the story from its source.