COMPANY OVERVIEW
JAZIRA SECURITIES BROKERAGE
PALM HILLS
Thursday, December 25, 2014
Summary
Palm Hills Developments Company-PHD is a leading real estate developer operating mainly in Egypt with its primary focus on the high-end
residential real estate market. It was founded in 2005 by Mansour and Maghraby Investment and Development-MMID. PHD enjoys a land
bank of 29 mn sqm in Egypt and Kingdom of Saudi Arabia-KSA out of which almost 35% is not utilized yet. PHD is the most diversified
developer in Egypt, with its project in East and West Cairo, as well as in the North Coast operating in both primary and secondary homes.
Its operations consist of acquiring land at sub-market rates, creating value by developing residential communities and resorts, and selling
them to high-end buyers. Now PHD is executing 18 projects in Egypt.
Company Highlights
Industry Highlights
PHD targets 30-35% of revenues from commercial projects Egypt’s real estate market was expected to gradually recover in
(2 Dec.2014)
late 2014 and 2015.
UAE ‘s Aabar acquired 5.1% stake in PHD
There are signs that foreign direct investment is cautiously turning tot (13 Nov.2014)
wards the Egyptian real estate sector once more. A number of Egyptian
PHD withdraws EGP1 bn from banks to finance projects real estate developers have reported significant year-on-year rises in
(9 Nov.2014)
profits and revenue .
PHD 9M FY14 net profit’s rose by 34.8% (2Nov.2014)
Opportunities
PHD posted net profit of EGP282.886 mn 9M FY14, with a
34.8% increase vs. EGP209.73 mn in the same period last year • PHD is rescheduling its debts which will increase the cash flow from
earlier, according to the consolidated financial results.
financing activities, nudging it achieving its aims of increasing the
portfolio of its territory by acquiring new land in the east of Cairo in
general, and New Cairo in particular.
• PHD went through impressive financial restructuring through capital
raising, debt restructuring, which enhanced ,PHD’s financial postionShareholder's Structure
ing enabling its complete current project while work on .
5.1%
2.3%
Mansour and
Threats
Maghraby
Free Float
42.2%
51.0%
Aabar Inv.
Ripple Wood
• Lack of Egyptian government planning and visions strategy during
the past 4 years, which contributed to the weakness of the volume of
projects implemented.
• The scarcity of land offered and the incompletion of connecting utilities which represents an additional burden on the investors.
Sources:PHD‘sPressReleases,historicalfigures&JaziraCapitalestimates
Market Price (EGP/Share)
3.90
Reuters Codes
PHDC.CA
Full Name
Palm Hills Development
Short Name
Palm Hills
No. of Shares (mn)
1,348
Free Float (%)
56.1
Market Cap (EGP/mn)
4,786
Analyst : Nada Safeer
Palm Hills Stock Price (EGP)
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
FY ending Dec.
2013a
2014e
2015f
2016f
Revenues (EGP mn)
1,209
1451
1,741
2,785
Net profit (loss) (EGP mn)
(134)
332
464
649
EBITDA Margin (%)
30.5
46.0
46.0
46.0
EPS (EGP)
0.18
0.25
0.34
0.48
DPS (EGP)
-
-
-
-
PER
20.2
14.4
10.3
10.0
DY
-
-
-
-
a:Actual,e:Estimatef:Forecast&mn:million
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COMPANY OVERVIEW
JAZIRA SECURITIES BROKERAGE
PALM HILLS
Thursday, December 25, 2014
Jazira Securities Brokerage
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Title
Land Line
Email
Hussein El Sawalhy, CFA
Managing Director
(+202) 3760 9915
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Head of Sales & Trading
(+202) 37609941
[email protected]
Mohamed Ashraf
Research Department
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Senior Technical Analyst
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George Mansour
Customer Service
+20122 921 4069
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Marketing Manager
+20109 166 1366
[email protected]
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