Cairo – Mubasher: Pharos Research has maintained their ‘Overweight’ recommendation on Sixth of October Development and Investment’s (SODIC) stock at a fair value (FV) of EGP 45.5 per share
SODIC’s sales were mostly dependent on Villette in East Cairo, which accounted for 40% of sales, more than sales from Malaaz in the North Coast, which made up 26% of sales, Pharos said in a report on Sunday.
Moreover, margins fell despite the annual and quarterly increase in revenue, gross profit, and net profit, according to the report.
The research firm added that the company’s receivables remained stable at EGP 11.4 billion during Q3-18.
Additionally, net cash rose slightly to EGP 2.9 billion at the end of 3Q-18 from EGP 2.7 billion at the end of 2Q-18, Pharos noted.
Earlier this day, SODIC posted that its consolidated earnings for the first nine months of 2018 rose by 20.7% year-on-year on the back of higher revenues.
The Egyptian real estate firm has generated EGP 612.9 million during the January-September period, versus EGP 507.7 million in the year-ago period, including minority shareholders’ rights, according to a statement.
Revenue grew to EGP 1.9 billion in the nine-month period of this year, up from EGP 1.75 billion in the same period a year earlier.
