Beltone Financial Research maintained the fair value of Six of October Development & Investment (SODIC) at EGP 28.53 per share and recommended a "Hold."

Beltone stated that SODIC FY13 results were negatively affected by sporadic cancellations related to Solidere, the cancellation of the land plot in July 2010 and the deterioration of the company’s investments in Syrian, which are estimated at EGP 478 million.

SODIC reported a net loss before minority of EGP 447 million compared to a net income of EGP 257 million in FY12, with a significant decline of 174%.

Revenues didn’t meet Beltone's expectations of EGP 1,564 million, as it reached EGP 1,342 million, declining by 7.2% y-o-y. Gross profit reached EGP 355 million, implying a GPM of 26.8% versus 36.3% in FY12.

Beltone expects FY14 to be a good year for SODIC after the settlement of its legal disputes with Solidere and on Eastown, removing the overhang on the stock.

Beltone viewed the extension in the development timeframe of Eastown and Westown as extremely positive as it will allow the company to stretch the sales launch over a longer period, allowing for more price increases between phases, generating higher revenues.

However, Beltone remain concerned about SODIC's outlook beyond the delivery of its existing projects given its limited land bank of 7.5 million sqm, which will be completely utilized over the next five years.