Palm Hills profit up 19% in 2017, Pharos reiterates recommendation

CAIRO – 26 February 2018: Palm Hills Development Company’s (PHDC) announced that it achieved a 19.25 percent increase of its profits in 2017, driven by the rise of its revenues which pushed Pharos Research to reiterate its overweight recommendation based on the fair value (FV) of LE 5 per share.

Palm Hills recorded net profit of LE 936.47 million ($52.86 million) in 2017, compared to LE 785.25 million in 2016, the financial indicators of the company showed.

The revenues increased 17 percent on a year on year (YoY) basis to reach LE 6.6 billion, compared to LE 5.5 billion during 2016.

The company announced that the gross profit rose 25 percent to LE 2.1 billion.

The financial indicators pointed out that the net operating profit increased 26 percent after taxes to record LE 806 million.

Pharos Research said that Palm Hills’ sales came higher than their projection of LE 9.2 billion by 24.5 percent on a year on year basis and 14.2 percent on a quarter on quarter (QoQ) basis.

The company sales recorded LE 10.5 billion in 2017 and LE 2.4 billion in the fourth quarter in 2017, down 14.5 percent YoY and up 23.9 percent QoQ.

Pharos added that Palm Hills target sales in 2018 is LE 12 billion.

Pharos Research reiterated their overweight recommendation of PHDC based on the fair value (FV) of LE 5 per share.


Pharos Research issued financial earnings of Palm Hills.

The research company clarified that its fair value was driven by the company’s development portfolio, October Oasis, the largest contributor to their FV by 1.43 per share of the FV.

October Oasis is a 3,000-feddan co-development project that PHDC is planning to launch in April 2018.

Pharos added that the second half of 2018 should witness the launch of PHDC’s Alexandria co-development project which contributes LE 0.33 per share to the FV.

PHDC is also planning in 2018 to monetize receivables of up to LE 1.8 billion, LE 700-800 million of which should be concluded in the first quarter of 2018.

Palm Hills operates within the Real Estate sector focusing on Real Estate Development.

It has 25 subsidiaries operating across United Kingdom, Singapore, Egypt and Saudi Arabia. Palm Hills is based in Giza, Egypt and was established in January 2005.