Resort in El Gouna - Orascom Development Website
CAIRO – 16 August 2017: Pharos Holding maintained its overweight recommendation on Orascom Development Egypt with a fair value (FV) set at LE 17.05 per share, a Tuesday report read.
The company’s sales surged 96 percent year-on-year and 187.9 percent quarter-on-quarter to LE 533.4 million ($30 million) in the second quarter.
Net sales more than doubled to reach LE 718.7 million in the first six months of this year compared to LE 359 million in the same period of the previous year. Real estate revenues reached LE 300.5 million, with a 35.4 percent increase, up from LE 222 million in the year-ago period.
During the first half of this year, the company launched two projects ‘Fanadir Bay II’ and the second phase of ‘Tawila’ with a total value of $10.6 million and $22.4 million, respectively, and were both sold out, which were highly contributed to the surge in the sales.
Revenue in the second quarter stood at LE 599.9 million, hiking 79.6 percent year-on-year and 21.5 percent quarter-on-quarter.
As per latest report by the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt’s tourist arrivals rose 62 percent year-on-year in June 2017 to 533,000 tourists.
The hotels segment’s revenues hiked 145.2 percent to LE 448.8 million, rising from LE 183 million in H1 of 2016, while it advanced 154.5 percent to LE 247.9 million in Q2.
Gross profit hiked 131.7 percent year-on-year and 94.4 percent quarter-on-quarter to LE 247.5 million.
Net profit increased to LE 100.4 million, with a 32.3 percent quarter-on-quarter rise versus net loss of LE 17.9 million in the same period of the previous year, while it reached LE 117.4 million versus net loss of LE 106 million in H1 of 2016.
Pharos highlighted that the company is planning to launch a project in El Gouna in the fourth quarter of 2017, with expected sales worth $19.5 million, in addition to launching G-Space’s second phase.