Report
EUR 9.28 For Business Accounts Only

SODIC - Solid quarter for handovers and off-plan sales

​SODIC: Solid quarter for handovers and off-plan sales. New portfolio elements in FY 17e should add further upside.

  • ​Off-plan sales touched EGP 1.4bn in Q3 16A alone (+67% y/y) driven by 2 new projects in the North Coast and East Cairo 
  • Recognized revenues rose 74% y/y with the handover of 286 units (+90% y/y)
  • Margins weakened by 350bps y/y as the majority of handovers were generated from the initial phases of developments sold over 2008-2012

Underlying
Six Of October Development & Investment

Sixth of October Development and Investment Co SAE. Sixth of October Development and Investment Company SAE (SODIC) is an Egypt-based company engaged in real estate development projects and operations. The Company is specialized in lands acquisition and subdivision for the purpose of properties development, selling or leasing; construction and integrated construction activities and operations as well as other supplementary works; building, selling and leasing all various kinds of real estate properties; urban communities development; working in the field of tourist development and in all tourist establishments field including building , managing , selling or utilizing hotels, motels, restaurants and tourist villages, as well as sporting, entertainment, medical and educational buildings. The Company's subsidiaries include, among others, SODIC Real Estate Services Company, Sixth of October for Development & Real Estate Projects and Move-In for Advanced Contracting Co SAE.

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

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