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Pharos Research maintains SODIC's FV at EGP 32.36/shr

Pharos Research maintains SODIC's FV at EGP 32.36/shr
Sales retreated 29.7% to EGP 881.0 million
SODIC
OCDI
-2.60% 44.56 -1.19

Cairo – Mubasher: Pharos Research has maintained its fair value (FV) of Sixth of October for Development and Investment’s (SODIC) stock at EGP 32.36, with an ‘overweight’ recommendation.

SODIC’s net profits fell by 23.6% year-on-year to EGP 162.04 million in the three-month period ended 31 March, compared to EGP 212.11 million.

Sales retreated 29.7% to EGP 881.0 million, pressured by limited project launches during the January-March period of 2019, the research firm said in a report.

“The quarter witnessed the launch of the first phase of Allegria Residence and the second phase of Eastown District New Cairo (EDNC), the company’s office complex in East Cairo,” the report added.

SODIC aims to raise sales by 39.2% year-on-year to EGP 7.2 billion in fiscal year 2019, higher than the research firm’s estimate of EGP 4.3 billion which “does not include sales from Al Yosr and the 500-feddan West Cairo project,” Pharos Research indicated.

The company’s sales projection for FY19 can only be achieved if the planned launch of Al Yosr and West Cairo project “push sales towards the company’s ambitious target,” the research firm noted.