Pharos upgrades Palm Hills FV, with overweight recommendation

CAIRO – 26 July 2017: Pharos Holding upgraded the fair value (FV) of Palm Hills Developments at LE 3.47 ($0.20), to include the firm’s new projects, including the Alexandria co-development project and the 3,000-feddan West Cairo co-development project, with an Overweight recommendation.

Sales surged 156 percent year-on-year to LE 2.5 billion, leveled down 18.0 percent quarter-on-quarter; LE 2 billion of the quarter’s total sales were residential sales, while the remaining LE 500 million were commercial sales.

The report attributed the rise in sales to the launch of the Crown, Palm Valley Mall, Palm Central projects in West Cairo and Hacienda West in the North Coast. Projects in West Cairo, East Cairo and the North Coast respectively contributed 43.4 percent, 34.1 percent and 22.5 percent to the quarter’s total sales.

The rise in sales was reflected in the company’s receivables which grew to LE 13.3 billion at the end of Q2 of 2017, Pharos said.

Total revenues leveled up 51.5 percent to LE 1.64 billion in the second quarter of 2017 compared to LE 1.08 billion in Q2 of 2016.

Gross profit stood at LE 456.8 million, with a hike of 60 percent year-on-year and a decrease of a 6.5 percent quarter-on-quarter in Q2 of 2017.

Pharos expected Palm Hills to sign an agreement regarding the co-development of 3,000 feddans (unit of area equivalent to 1.038 acres) in West Cairo with New Urban Communities Authority (NUCA) in the second half of the current year, after it obtained its board’s approval on the project in June